Munich – Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) today announced the subscription of a cash capital increase by the Active Ownership Group in a private placement. Based on the resolutions of the Management Board and the Supervisory Board, the Company’s share capital will be increased by partially utilizing the approved capital from currently EUR 10,000,000.00 by EUR 1,000,000.00 to a total of EUR 11,000,000.00 by issuing 1,000,000 new no-par value bearer shares, each with a notional value of EUR 1.00 of the share capital, against cash contribution.
The total inflow of funds amounts to EUR 25,750,000.00 and corresponds to an issue price per share of EUR 25.75. The Active Ownership Group (AOC) is an independent, owner-managed investment company that acquires significant shares in medium-sized, listed companies in the DACH region and Scandinavia. As a committed co-owner, AOC is actively committed to increasing shareholder value by implementing operational, strategic and structural improvements. Together with the management, AOC defines value-creating strategies and measures for this purpose. AOC supports the implementation of these strategies and measures by serving on supervisory and advisory boards as well as by providing new growth capital. The company was founded in 2015 by Florian Schuhbauer and Klaus Roehrig. In its category, the Active Ownership Fund 2019 was awarded by the analysis house Preqin as the best fund with a European focus in the period 2017-2019.
The funds raised from the capital increase will be used primarily for the expansion and further development of the Company’s own product pipeline. Strategically, the development of biosimilars remains the company’s focus. The additional liquidity provides Formycon with the opportunity to develop the projects into late stages of development and thus tap significant value creation potential. With FYB206, the company has a promising preclinical biosimilar project in which important milestones have already been reached and value-generating intellectual property (IP) has been built up. In addition, Formycon is pursuing a promising approach in the development of novel antibody-based COVID-19 medicines. The transfer of this project into clinical trials is planned for next year.
Klaus Roehrig, founding partner of AOC, comments on the entry as follows: “We see significant potential in Formycon and have great confidence in the management team. By subscribing to the capital increase and the associated provision of growth capital, we are expressing this. Formycon is on its way to becoming a key global player in the rapidly growing, multi-billion dollar global biosimilar market. The upcoming launch of FYB201 (biosimilar candidate for ranibizumab), combined with the advanced development of biosimilars for ustekinumab (FYB202) and aflibercept (FYB203), underscores the current value of the company. At the same time, the existing pipeline of late-stage projects demonstrates the company’s ability to select the right reference products and successfully advance their development all the way to market approval. Formycon thus fits perfectly with our investment focus on well-positioned and future-oriented companies. We look forward to supporting the company’s growth strategy over the long term.”
Dr. Nicolas Combé, CFO of Formycon AG adds: “We are very pleased about the entry of the Active Ownership Group and their long-term commitment to support the consistent implementation of our growth strategy. We will invest the capital provided in the further development of our pipeline. The FYB206 project is extremely promising and with the additional liquidity we are able to move this and other projects into later development phases while retaining exclusive rights for as long as possible. This is the core of our growth strategy and we are confident that it will further optimize the commercialization potential of our projects. In addition to the development and expansion of our biosimilar pipeline, we want to advance our project in the field of COVID-19 therapies and see considerable opportunities here as well. Formycon is a strong development company with exceptional growth potential and together with AOC, it is our goal to successfully continue on the path we have taken so far. We are looking forward to a long-term and trusting cooperation.”
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 antibody-based COVID-19 compounds.
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. In 2019, global sales of biosimilars exceeded USD12 billion. Analysts estimate that this figure could rise to around USD 69 billion by 2025.