Formycon AG: Strategic Developments and Positive Outlook Justify Buy Rating Despite Revenue Shortfall

Formycon AG (FYB – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Yi Chen from H.C. Wainwright reiterated a Buy rating on the stock and has a €50.00 price target.

Yi Chen has given his Buy rating due to a combination of factors, including Formycon AG’s strategic developments and financial outlook. Despite a revenue shortfall in the first quarter of 2025, the company maintains a positive revenue guidance for the year, supported by the recent launch of FYB202 in the U.S. and Europe. The assignment of a permanent reimbursement code for FYB202 in the U.S. is expected to facilitate payor reimbursement, enhancing its market potential.
Furthermore, the ongoing Phase 1 trial for FYB206, which may bypass the need for a Phase 3 trial, is seen as a cost-saving measure that could offset lower cash flows from other products. The company’s cash position and the potential for positive EBITDA by 2026 also contribute to the optimistic outlook. While risks such as clinical trial failures and market competition exist, the estimated market value and strategic initiatives justify the Buy rating with a revised price target of €50 per share.

In another report released on May 13, Hauck & Aufhaeuser also maintained a Buy rating on the stock with a €46.00 price target.