Munich – The biosimilars Company Formycon (ISIN: DE000A1EWVY8/ WKN: A1EWVY) has significantly improved its revenue and earnings in the first quarter of 2018 compared to the same period of the previous year. As the company announced today, the group sales and other earnings increased in the first three months of the year to Euro 13.69 million (previous year: Euro 3.38 million). The earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to Euro 6.88 (-0.51) million, the operative result (EBIT) as well as the quarter result totaled Euro 6.68 (- 0.70) resp. 6.67 (-0.71) million.
The positive development is mainly driven by the credit for the investments in the FYB202 project from 2013 to 2016. Taking into account these investments in the amount of Euro 8.47 million for Formycon’s financing obligations for the joint venture FYB 202 GmbH & Co. KG led to a one-time effect on turnover and earnings, however not on liquidity. The mentioned amount was credited to the capital account of the Formycon AG in the FYB 202 GmbH & Co. KG. Formycon holds a 24.9 percent share in the joint venture. According to its stake the company bears this amount of previous project investments and further development costs, but also shares accordingly in any potential future licensing and marketing revenues.
The liquidity ratios of the Formycon Group developed also as planned in the first quarter of 2018: Stocks of liquid assets, which comprise cash, checks, bank deposits and securities, totaled Euro 16.59 million at the end of March. Including short-term receivables from deliveries and services worth Euro 3.15 million, Formycon held liquid assets of Euro 19.74 million on the day of reporting.
In the first three months of the year, Formycon AG as the company’s actual operational unit achieved a turnover of Euro 11.86 million (first quarter of 2017: Euro 2.16 million). The three-months result of the joint stock company amounted to Euro 6.58 million compared to Euro -0.77 million in the same period last year.
The number of employees increased as anticipated to 85 compared to 71 at the end of the first quarter of 2017.
Based on the positive development in the first quarter of 2018, the company anticipates a significant positive result and a turnover of approx. Euro 35 million for the year.
Dr. Nicolas Combé, Chief Financial Officer of Formycon, is satisfied with the first quarter of 2018: “In addition to the positive development of our biosimilar projects, in particular, the recently communicated intermediate results of the clinical phase III study of FYB201, we are also very satisfied with our financial benchmarks. Through the existing licensing agreements for our biosimilar projects FYB201 and FYB203 as well as the FYB202 joint venture, we are well positioned with respect to financing our three most advanced projects.”