Munich – Today Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) announced its financial result for the first nine months of the fiscal year 2018.
The turnover of the Formycon group, which, aside from the AG consists of both subsidiaries Formycon Project 201 GmbH and Formycon Project 203 GmbH, increased significantly compared with the first nine months of 2017. Thus revenues recorded an increase of 17.30 million euros to a total of 32.42 million euros (previous year: 15.12 million euros). This sales performance was driven by credit for the investments in the FYB202 project between 2013 and 2016. Taking these investments in the amount of 8.47 million euros into account for Formycon’s financing obligations for the joint venture FYB 202 GmbH & Co. KG led to a one-time effect on turnover and earnings to the same amount, however not on liquidity.
Formycon holds a 24.9 percent share in the joint venture with Aristo Pharma GmbH and on completion of a pilot stage, bears this amount of previous project investments and further development costs. On condition of a further successful development and approval Formycon will benefit at the same ratio from any potential future licensing and marketing revenues.
Total turnover, adjusted by this one-off effect, increased in the third quarter of 2018 by 8.83 million euros to a total of 23.95 million euros (previous year: 15.12 million euros). This means the Formycon group also records a clear growth in sales due to further development of both biosimilar candidates FYB201 and FYB203.
On the reporting date, earnings before interest, taxes and depreciation on fixed assets and intangible assets (EBITDA) amounted to 9.34 million euros (previous year: minus 4.25 million euros). Operational results (EBIT) amounted to 8.70 million euros (previous year: minus 4.84 million euros), net results totaled 8.06 million euros (previous year: minus 4.89 million euros).
For the whole of 2018 Formycon now anticipates a turnover of slightly over 40 million euros at group level. In addition, consolidated net earnings of 7.00 million euros are expected for the total year. On September 30 2018, stocks of liquid assets, which comprise cash, bank deposits and securities, totaled 12.01 million euros. Including short-term receivables from deliveries and services worth 6.24 million euros, liquid assets totaled around 18.25 million euros at the end of the third quarter.
In the first three quarters of 2018, Formycon AG as the actual operational unit, achieved a turnover of 23.72 million euros (previous year: 7.41 million euros). The EBITDA amounted to 9.08 million euros (previous year: minus 4.48 million euros), the operating result to 8.44 million euros (previous year: minus 5.07 million euros) and net earnings to 7.80 million euros (previous year: minus 5.11 million euros).
As planned, the number of employees at Formycon AG also increased. On the day of reporting in September the number was 93 (previous year: 75) and is expected to further increase slightly by the end of the year.
Dr. Nicolas Combé, member of the board and CFO of Formycon AG, gave the following statement with regard to the results: “We are pleased with the positive development of the business and are very happy with the figures of the first nine months of 2018. The key value driver for our company continues to be the development progress of our biosimilar candidates. The whole team is working very consistently towards this and we are optimistic about being able to give detailed information on the development state of our projects very soon.”
Formycon is a leading, independent developer of high-quality biopharmaceutical medicines, especially biosimilars. The company focuses on treatments in ophthalmology, immunology and on other key chronic diseases, covering the entire value chain from technical development to the clinical phase III as well as the preparation of dossiers for marketing approval. With its biosimilars, Formycon is making a major contribution towards providing as many patients as possible with access to vital and affordable medicines. Formycon currently has four biosimilars in development. Based on its extensive experience in the development of biopharmaceutical drugs, the company is also working on the development of an innovative COVID-19 drug FYB207.
Since their introduction in the 1980s, biopharmaceuticals have revolutionized the treatment of serious diseases such as cancer, diabetes, rheumatoid arthritis, multiple sclerosis and eye diseases. In the coming years, many of these biotech drugs will lose their patent protection – and by 2020, medications with revenues of approximately USD 100 billion will be off patent. Biosimilars are follow-on versions of biopharmaceuticals, for which exclusivity has expired. They are approved via stringent regulatory pathways in highly regulated markets (such as EU, US, Japan, Canada, Australia) based on proven similarity of the biosimilar with the originator biopharmaceutical reference product. Global sales of biosimilars are estimated to exceed $15 billion by 2020. By 2030, analysts estimate that this figure could rise to over $60 billion.