Formycon AG (FYB) AI Stock Analysis

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Formycon AG

(XETRA:FYB)

Rating:63Neutral

Price Target:

€28.00

▲(2.19%Upside)

Formycon AG's stock score is primarily driven by its strong balance sheet and positive technical indicators. However, significant challenges in profitability and valuation due to negative earnings and lack of dividends weigh heavily on the overall score. The mixed financial performance and overbought technical indicators suggest caution.

Positive Factors

Cost Management

The decision to terminate the Phase 3 Lotus trial of FYB206 is expected to save investment costs in the high double-digit million range, showcasing Formycon’s expertise in biosimilar development.

Market Position

The U.S. FDA has provisionally determined that Otulfi would be interchangeable with the reference drug Stelara, which is a positive development for market penetration.

Regulatory Approval

The U.S. FDA has confirmed that the ongoing Phase 1 Dahlia trial combined with a comprehensive analytical program would be sufficient to demonstrate the therapeutic comparability of FYB206 with Keytruda, thus eliminating the need for a Phase 3 trial.

Negative Factors

Financial Expectations

The estimated market value of the firm has decreased to approximately $1.19B, leading to a lowered 12-month price target of €57 from €98 per share.

Market Challenges

Sandoz has decided to temporarily suspend marketing activities in the U.S. due to ongoing price erosion and plans to reposition FYB201 in the U.S. after one year.

Revenue Performance

Total revenue was €5.3M, missing our projection of €14.0M.

Formycon AG (FYB) vs. iShares MSCI Germany ETF (EWG)

Market Cap

€484.01M

Dividend YieldN/A

Average Volume (3M)27.00K

Price to Earnings (P/E)5.9

Beta (1Y)1.00

Revenue Growth-10.32%

EPS Growth-250.76%

CountryDE

Employees250

SectorHealthcare

Sector Strength41

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.85

Shares Outstanding17,664,427

10 Day Avg. Volume30,983

30 Day Avg. Volume26,998

Financial Highlights & Ratios

PEG Ratio-0.49

Price to Book (P/B)0.79

Price to Sales (P/S)0.00

P/FCF Ratio-11.12

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€44.83

Price Target Upside63.61% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Formycon AG Business Overview & Revenue Model

Company DescriptionFormycon AG develops and markets biosimilar products. Its product pipeline includes FYB201, a biosimilar candidate for Lucentis, an ophthalmic drug used in the treatment of neovascular age-related macular degeneration and other serious eye diseases; FYB202, a biosimilar candidate for Stelara, a biopharmaceutical used in the treatment of inflammatory diseases, such as moderate to severe psoriasis, as well as for the treatment of Crohn's disease and ulcerative colitis, which is in the Phase III clinical trial; and FYB203, a biosimilar candidate for Eylea to treat neovascular age-related macular degeneration and other eye diseases that is in Phase III clinical trials. The company is also developing FYB206; and FYB207, an antiviral drug for the treatment of COVID-19. It has a collaboration agreement with Leukocare AG to develop stable formulations for various candidates in its product pipeline. The company was formerly known as Nanohale AG and changed its name to Formycon AG in 2012. Formycon AG was founded in 1999 and is headquartered in Planegg, Germany.

How the Company Makes MoneyFormycon AG generates revenue through the development and commercialization of biosimilars, which are biological products highly similar to already approved reference medicines. The company's primary revenue streams include licensing agreements, development partnerships, and product sales. Formycon collaborates with various pharmaceutical companies to co-develop biosimilars, sharing the risks and profits associated with bringing these products to market. Additionally, Formycon earns milestone payments and royalties through these strategic partnerships, contributing significantly to its earnings. The company's focus on high-demand therapeutic areas and adherence to regulatory standards further bolster its revenue potential.

Formycon AG Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
60.80M	77.70M	42.50M	36.61M	34.23M	33.16M
	Gross Profit
7.58M	23.30M	12.07M	10.11M	-2.19M	962.44K
	EBIT
-24.90M	-369.00K	-17.73M	-13.83M	-5.74M	-2.27M
	EBITDA
47.36M	81.05M	51.53M	-12.42M	-5.90M	-1.36M
	Net Income Common Stockholders
63.90M	75.80M	35.99M	-13.29M	-5.93M	-2.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.04M	27.04M	9.82M	25.18M	42.25M	22.35M
	Total Assets
890.36M	890.36M	853.70M	70.72M	75.60M	53.56M
	Total Debt
29.49M	29.49M	49.31M	5.28M	4.98M	0.00
	Net Debt
2.45M	2.45M	39.49M	-19.75M	-37.03M	-22.12M
	Total Liabilities
387.61M	387.61M	497.12M	14.82M	7.56M	5.34M
	Stockholders Equity
502.75M	502.75M	356.58M	55.89M	68.04M	48.21M
Cash Flow		Free Cash Flow
-42.10M	-30.60M	-45.75M	-14.48M	-5.86M	-2.52M
	Operating Cash Flow
-32.49M	-9.85M	-18.99M	-13.54M	-5.21M	-1.51M
	Investing Cash Flow
-17.19M	-17.38M	-37.07M	-3.93M	-650.00K	-5.71M
	Financing Cash Flow
53.66M	44.44M	40.85M	491.00K	25.75M	17.26M

Formycon AG Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price27.40

Price Trends

50DMA

23.35

Positive

100DMA

31.43

Negative

200DMA

41.36

Negative

Market Momentum

MACD

0.69

Negative

RSI

73.35

Negative

STOCH

82.10

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FYB, the sentiment is Neutral. The current price of 27.4 is above the 20-day moving average (MA) of 23.75, above the 50-day MA of 23.35, and below the 200-day MA of 41.36, indicating a neutral trend. The MACD of 0.69 indicates Negative momentum. The RSI at 73.35 is Negative, neither overbought nor oversold. The STOCH value of 82.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:FYB.

Formycon AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FYB	63 Neutral	€484.01M	5.89	-26.06%	―	-10.32%	-250.76%
Sector *	54 Neutral	$5.24B	3.27	-45.39%	2.80%	16.77%	-0.07%
0JYO		CHF1.68B	20.37	-19.26%	5.86%	―	―
0N70		€1.42B	44.66	-4.72%	0.26%	―	―
0IRF		€1.24B	―	-20.51%	―	―	―
0H9X		€14.82B	23.90	4.37%	2.86%	―	―
0JHU		€10.56B	2.05		5.61%	―	―

* Healthcare Sector Average

Performance Comparison

DE:FYB

Formycon AG

27.40

-22.70

-45.31%

GB:0JYO

BB Biotech

30.60

-6.91

-18.42%

GB:0N70

Biotest

30.20

2.30

8.24%

GB:0IRF

Evotec

7.04

-1.67

-19.17%

GB:0H9X

Fresenius Medical Care AG & Co. KGaA

50.32

11.78

30.57%

GB:0JHU

Porsche Automobil Holding

34.06

-10.25

-23.13%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.