Yi Chen, an analyst from H.C. Wainwright, reiterated the Buy rating on Formycon AG. The associated price target was lowered to €48.00.
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Yi Chen has given his Buy rating due to a combination of factors including Formycon AG’s recent successful €70 million debt financing, which strengthens the company’s cash position to approximately €102.9 million. This financial boost is expected to support the development and expansion of Formycon’s biosimilar product portfolio, potentially funding operations into 2028. Additionally, Formycon’s strategic partnerships, such as the distribution agreement with ratiopharm GmbH for the commercialization of FYB202 in Germany, and the exclusive license agreement with Valorum Biologics for FYB203 in the U.S. and Canada, enhance its commercial footprint and revenue potential.
Yi Chen also considers the valuation of Formycon, with a 12-month price target adjusted to €48 per share, based on an estimated market value of $1.0 billion. This valuation includes a discounted cash flow analysis of the company’s assets and accounts for the recent cash infusion while excluding the new debt. Despite potential risks such as clinical trial failures or regulatory hurdles, the strategic financial and commercial developments underpin the Buy rating, reflecting confidence in Formycon’s growth trajectory and market position.
In another report released on June 27, Hauck & Aufhaeuser also maintained a Buy rating on the stock with a €46.00 price target.