Formycon Publishes Annual Financial Statements for the 2020 Financial Year

DGAP-News: Formycon AG / Key word(s): Annual Report/Annual Results
17.05.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

Press Release // May 17, 2021

Formycon Publishes Annual Financial Statements for the 2020 Financial Year

- Group turnover and other earnings total Euro 34.6 million

- Solid liquidity base totaling Euro 49.2 million

- Annual result shaped by scheduled investments in FYB206 and FYB207

Munich - Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) has today published its financial performance indicators for 2020 and has recorded a solid financial year.

On the day of reporting, December 31, 2020, the Formycon Group's commercial figures had developed as forecast. Consolidated group sales which, in addition to the AG, include the two subsidiaries Formycon 201 Project GmbH and Formycon 203 Project GmbH as well as the 24.9 percent share in the FYB 202 GmbH & Co. KG joint venture, amounted, as forecast, to a total of Euro 34.2 million (previous year: Euro 33.2 million).

Group earnings before interest, taxes and depreciation on fixed assets and intangible assets (EBITDA) amounted to Euro -4.8 million (previous year: Euro -1.4 million) on the day of reporting. The operating result (EBIT) totaled Euro -5.7 million (previous year: Euro -2.3 million). At Euro -5.9 million (previous year Euro -2.3 million), the result for the year was in line with expectations. In line with its growth strategy, Formycon had invested in the development of its own or young pipeline in the 2020 financial year, resulting in a slightly higher negative annual result compared to previous years. In addition to the COVID-19 drug (FYB207), the main development focus was on the as yet unpublished and unpartnered biosimilar candidate FYB206. Formycon was also able to recruit further qualified specialists last year in line with the needs of the development projects and employed 131 people at the end of the reporting period (+16% compared to the previous year).

Current assets consist largely of liquidity and near-liquid assets. As of December 31, 2020, the Formycon Group had a solid capital base, which, including the cash capital increase of around Euro 25.8 million completed in the fourth quarter of 2020, totaled Euro 42.2 million (previous year: Euro 22.4 million) in cash and cash equivalents (cash on hand, checks, bank balances, and securities). Including short-term receivables and other assets worth a further Euro 7.0 million, the Formycon Group holds liquid assets of Euro 49.2 million in total (previous year Euro 27.6 million) and therefore has flexible room for maneuver for the further development of its own or as yet unpartnered projects. In the current phase of the company, Formycon is focusing on the research and development activities of its own and out-licensed biosimilar projects, which are providing the current revenues. After successful approval of the biosimilar candidates, Formycon will also participate in the marketing revenues.

The Group's balance sheet total rose by 41% to around Euro 75.6 million (previous year: Euro 53.6 million) with an equity ratio of 90 percent, unchanged from the previous year. The company has no financial liabilities.

Formycon AG, as the Group's actual operational unit, achieved a turnover of Euro 25.1 million (previous year: Euro 21.0 million) and recorded an EBITDA of Euro -4.7 million (previous year: Euro -1.3 million). Accordingly, this resulted in an EBIT amounting to Euro -5.6 million (previous year: Euro -2.2 million) and an annual result of a rounded Euro -5.7 million (previous year: Euro -2.2 million).

Dr. Nicolas Combé, CFO of Formycon AG, looks back on the past financial year as follows: "Due to the prevailing Corona pandemic, 2020 was a year full of challenges. We are proud of what we have achieved and, in addition to our aspirational biosimilar projects, we have added another asset to the product pipeline with the development of our COVID-19 drug (FYB207). The good liquidity base allows us to operate from a stable position and, in addition to investments in FYB207, also enabled us to intensively further develop the early-stage and as yet unpartnered biosimilar candidate FYB206. Through our well-positioned development organization, we are able to develop up to five projects in parallel, creating further value for Formycon."

The full 2020 annual financial statements / annual report can be found on our website at https://www.formycon.com/en/investor-relations/financial-reports/.

About Formycon:
Formycon is a leading, independent developer of high-quality biopharmaceutical medicines, especially 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. Based on its extensive experience in the development of biopharmaceutical drugs, the company is also working on the development of a COVID-19 fusion protein.

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 approximately 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. In 2019, global sales of biosimilars exceeded USD12 billion. Analysts estimate that this figure could rise to around USD 69 billion by 2025.

Contact:
Sabrina Müller
Senior Manager Corporate Communications and Investor Relations
Formycon AG
Fraunhoferstr. 15
82152 Martinsried/Planegg/Germany
phone +49 (0) 89 - 86 46 67 149
fax + 49 (0) 89 - 86 46 67 110
Sabrina.Mueller@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.

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