Formycon AG: Formycon with Significant Growth in Turnover and Earnings in the First Quarter of 2018

DGAP-News: Formycon AG / Key word(s): Quarter Results/Interim Report

05.06.2018 / 08:00

The issuer is solely responsible for the content of this announcement.


Press Release // June 5, 2018

Formycon with Significant Growth in Turnover and Earnings in the First Quarter of 2018

Turnover and other earnings increase to Euro 13.69 million, the EBITDA amounts to Euro 6.88 million

– Result driven by credit for the investments in the FYB202 project from 2013 to 2016

– Positive effect on the annual result of 2018 expected

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.”

About Formycon:
Formycon is a leading, independent developer of high-quality follow-on products for biopharmaceutical medicines known as 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.

About Biosimilars:
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 more than 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. While the global market for biosimilars is currently more than USD 3.0 billion, industry experts expect this figure to grow tenfold by the year 2025.

Contact Formycon:
Thorsten Schüller
Corporate Communications and Investor Relations
Formycon AG
Fraunhoferstr. 15
82152 Planegg-Martinsried/Germany
phone +49 (0) 89 – 86 46 67 150
fax + 49 (0) 89 – 86 46 67 110
Thorsten.schueller@formycon.com // www.formycon.com

Disclaimer:
This press release may contain forward-looking statements and information which are based on our current expectations and certain assumptions. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, performance of the company, development of the products and the estimates given here.
Such known and unknown risks and uncertainties comprise, among others, the research and development, the regulatory approval process, the timing of the actions of regulatory bodies and other governmental authorities, clinical results, changes in laws and regulations, product quality, patient safety, patent litigation, contractual risks and dependencies from third parties. With respect to pipeline products, Formycon AG does not provide any representation, warranties or any other guarantees that the products will receive the necessary regulatory approvals or that they will prove to be commercially exploitable and/or successful.
Formycon AG assumes no obligation to update these forward-looking statements or to correct them in case of developments which differ from those anticipated.
This document neither constitutes an offer to sell nor a solicitation of an offer to buy or subscribe for securities of Formycon AG. No public offering of securities of Formycon AG will be made nor is a public offering intended.
This document and the information contained therein may not be distributed in or into the United States of America, Canada, Australia, Japan or any other jurisdictions, in which such offer or such solicitation would be prohibited. This document does not constitute an offer for the sale of securities in the United States.


05.06.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Formycon AG
Fraunhoferstraße 15
82152 Planegg-Martinsried
Germany
Phone: 089 864667 100
Fax: 089 864667 110
Internet: www.formycon.com
ISIN: DE000A1EWVY8
WKN: A1EWVY
Indices: Scale 30
Listed: Regulated Unofficial Market in Berlin, Frankfurt (Scale), Tradegate Exchange

 
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