Munich – The biosimilars company Formycon (ISIN: DE000A1EWVY8/ WKN: A1EWVY) has today published its 2018 Annual Report and has recorded a successful financial year.
The Group’s turnover rose compared to last year (Euro 29 million) by 48 percent to around Euro 43 million, exceeding forecasts. The earnings before interest, tax, depreciation and amortization on fixed and immaterial assets (EBITDA) were Euro 8 million (previous year Euro -0.8 million), which is significantly higher than last year’s figure. The significant rise in the earnings with an annual surplus of Euro 7.1 million (previous year Euro -1.6 million) resulted from a one-off effect from the FYB202 development project which impacted turnover and earnings, but not liquidity.
As part of the joint venture founded in 2017 with Aristo Pharma GmbH, a company within the Strüngmann Group, Formycon is developing the FYB202 biosimilar candidate for the reference drug Stelara®* (ustekinumab). The amount posted by Formycon from 2013 to 2016 and therefore before the contribution to the FYB202 project was Euro 8.5 million, and this was taken into account in the first quarter of 2018 in the financial obligations committed to the joint venture. With the conclusion of the pilot phase, and with 24.9 percent of the shares in FYB 202 GmbH & Co. KG, Formycon will bear the previous and future development costs in accordance with its shareholding quota. To date, Formycon has invested around Euro 21 million in the development of FYB202.
As in previous years, turnover was essentially generated from ongoing remuneration for product development services which were delivered on behalf of licensing partners. The Group’s revenue, adjusted for the special effect of the joint venture, is Euro 34.5 million (previous year Euro 23.1 million), reflecting the advancing development of the biosimilar candidates FYB201 and FYB203.
The balance sheet total of the Formycon Group which, aside from the AG consists of both subsidiaries Formycon Project 201 GmbH and Formycon Project 203 GmbH, increased by 28.6% to around Euro 39.6 million (previous year: Euro 30.8 million). At the same time, the equity ratio rose to 83.9 percent (previous year 82.9 percent). Current assets are largely made up of cash and cash equivalents. Liquid assets, including securities, stood at Euro 12.3 million on the day of reporting (previous year Euro 15.5 million). Including short-term receivables from deliveries and services worth Euro 5.2 million and other assets, Formycon holds liquid assets of around Euro 17.5 million (previous year: Euro 26 million). The company has no financial liabilities.
Formycon AG, as the Group’s actual operational unit, achieved a turnover of Euro 29.6 million (previous year: Euro 16.4 million) and improved its EBITDA significantly to Euro 8.2 million (previous year: Euro -0.7 million). Accordingly, this resulted in highly positive earnings for the period of Euro 7.3 million (previous year Euro -1.5 million).
2018 was again shaped by a noticeable increase in staffing levels in several operational areas, with the number of employees rising from 83 to 95.
Dr. Nicolas Combé, Financial Director of Formycon AG, reflects on a successful 2018 financial year and had this to say about the results: “We can be very satisfied with the 2018 financial year. In terms of both operations and overall company development, we made good progress. One particular milestone in 2018 was the successful conclusion of the clinical phase III study for FYB201, which was conducted under the responsibility of Formycon’s licensing partner Bioeq IP AG. Thanks to the special effect of the joint venture, we have delivered a strongly positive year-end result. For the current financial year, we anticipate a turnover volume that will be within the framework of the revenue adjusted for the special effect. We believe we are confirmed in our business model and we look forward optimistically to the future which will mainly be marked by the further development of our existing and the initiation of new projects in order to broaden our pipeline.”
The 2018 Annual Report can be found on our website at https://www.formycon.com/en/investor-relations/financial-reports/
* Stelara® is a registered trademark of Johnson & Johnson