Formycon AG (FYB) AI Stock Analysis

• Market Cap: €499.02M
• Dividend Yield: N/A
• Average Volume (3M): 29.91K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.99
• Revenue Growth: -10.32%
• EPS Growth: -250.76%
• Country: DE
• Employees: 250
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -0.85
• Shares Outstanding: 17,664,427
• 10 Day Avg. Volume: 19,590
• 30 Day Avg. Volume: 29,911
• PEG Ratio: -0.10
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €44.83
• Price Target Upside: 51.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: €28.00 ▼(-5.41%Downside)

Formycon AG's overall score reflects challenges in profitability and valuation, with negative earnings and absent dividend yield being significant factors. The stock's short-term technical indicators show some positive momentum, but longer-term trends remain bearish. The company's strong balance sheet provides a degree of financial stability.

Positive Factors

Cost Reduction

Phase 1 trial of FYB206 underway with the U.S. FDA indicating no need for a Phase 3 trial, potentially reducing costs.

Market Entry

FYB202/Otulfi commercially launched in the U.S. and EU at higher-than-expected price discount.

Regulatory Milestone

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.

Negative Factors

Market Strategy

U.S. marketing of FYB201 was paused by Sandoz, affecting revenue.

Price Pressure

The company provided an update on higher-than-expected price discounts for FYB202 and FYB201.

Revenue Miss

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

Formycon AG Business Overview & Revenue Model

Company Description

Formycon 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 Money

Formycon 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

Formycon AG's financial performance is mixed. While the balance sheet is stable with a strong equity base and low leverage, profitability and cash flow generation are concerning. Negative profitability metrics and declining revenue growth are significant issues, although external financing has improved the cash position.

Income Statement

Formycon AG demonstrates volatile revenue trends with a notable decline from 2023 to 2024. The company faces profitability challenges, evidenced by negative EBIT and net income margins in 2024. Despite this, the company experienced strong EBITDA performance in 2023, indicating potential operational efficiency. However, the negative net profit margin and declining revenue growth are areas of concern.

Balance Sheet

The company's balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The debt-to-equity ratio is low, suggesting conservative leverage usage. However, the declining stockholders' equity from 2023 to 2024 could indicate potential risk. Return on equity is negative in 2024 due to net losses, which is a downside.

Cash Flow

Operating cash flows are consistently negative, highlighting challenges in generating cash from operations. Free cash flow is also negative, which may affect liquidity. Despite negative cash flows, the company has managed to improve its cash position through financing activities, which could provide short-term relief.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.67M	77.70M	42.50M	36.61M	34.23M
Gross Profit	14.83M	23.30M	12.07M	10.11M	-2.19M
EBITDA	-4.10M	81.05M	51.53M	-12.42M	-5.90M
Net Income	-125.67M	75.80M	35.99M	-13.29M	-5.93M
Balance Sheet
Total Assets	771.72M	890.36M	853.70M	70.72M	75.60M
Cash, Cash Equivalents and Short-Term Investments	41.84M	27.04M	9.82M	25.18M	42.25M
Total Debt	10.59M	29.49M	49.31M	5.28M	4.98M
Total Liabilities	309.87M	387.61M	497.12M	14.82M	7.56M
Stockholders Equity	461.84M	502.75M	356.58M	55.89M	68.04M
Cash Flow
Free Cash Flow	-53.16M	-30.60M	-45.75M	-14.48M	-5.86M
Operating Cash Flow	-23.22M	-9.85M	-18.99M	-13.54M	-5.21M
Investing Cash Flow	-1.46M	-17.38M	-37.07M	-3.93M	-650.00K
Financing Cash Flow	39.48M	44.44M	40.85M	491.00K	25.75M

Formycon AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FYB, the sentiment is Positive. The current price of 29.6 is above the 20-day moving average (MA) of 26.98, above the 50-day MA of 24.66, and below the 200-day MA of 39.68, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FYB.

Formycon AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FYB	57 Neutral	€499.02M	5.89	-26.06%	―	-10.32%	-250.76%
Sector *	46 Neutral	C$189.62M	-4.26	-8.56%	3.09%	13.57%	-1.98%
0N6Z		€1.44B	61.76	-4.72%	0.16%	―	―
0N70		€1.44B	44.66	-4.72%	0.27%	―	―
0RAR		€331.86M	20.65	6.73%	2.02%	―	―
MEDOF		$367.03M	22.95	2.99%	―	―	―
PSG	75 Outperform	€338.40M	16.83	48.46%	1.81%	13.80%	10.94%