Formycon : Reports Nine-Month Figures for 2018

14. November 2018

Formycon Reports Nine-Month Figures for 2018

• Turnover increases to 32.42 million euros
• Net results for the period amount to 8.06 million euros and continue to be influenced by one-off effect
• Annual forecast once again revised upwards and substantiated

Munich - Today Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) announced its financial result for the first nine months of the fiscal year 2018.

The turnover of the Formycon group, which, aside from the AG consists of both subsidiaries Formycon Project 201 GmbH and Formycon Project 203 GmbH, increased significantly compared with the first nine months of 2017. Thus revenues recorded an increase of 17.30 million euros to a total of 32.42 million euros (previous year: 15.12 million euros). This sales performance was driven by credit for the investments in the FYB202 project between 2013 and 2016. Taking these investments in the amount of 8.47 million euros into account for Formycon's financing obligations for the joint venture FYB 202 GmbH & Co. KG led to a one-time effect on turnover and earnings to the same amount, however not on liquidity.

Formycon holds a 24.9 percent share in the joint venture with Aristo Pharma GmbH and on completion of a pilot stage, bears this amount of previous project investments and further development costs. On condition of a further successful development and approval Formycon will benefit at the same ratio from any potential future licensing and marketing revenues.

Total turnover, adjusted by this one-off effect, increased in the third quarter of 2018 by 8.83 million euros to a total of 23.95 million euros (previous year: 15.12 million euros). This means the Formycon group also records a clear growth in sales due to further development of both biosimilar candidates FYB201 and FYB203.

On the reporting date, earnings before interest, taxes and depreciation on fixed assets and intangible assets (EBITDA) amounted to 9.34 million euros (previous year: minus 4.25 million euros). Operational results (EBIT) amounted to 8.70 million euros (previous year: minus 4.84 million euros), net results totaled 8.06 million euros (previous year: minus 4.89 million euros).

For the whole of 2018 Formycon now anticipates a turnover of slightly over 40 million euros at group level. In addition, consolidated net earnings of 7.00 million euros are expected for the total year. On September 30 2018, stocks of liquid assets, which comprise cash, bank deposits and securities, totaled 12.01 million euros. Including short-term receivables from deliveries and services worth 6.24 million euros, liquid assets totaled around 18.25 million euros at the end of the third quarter.

In the first three quarters of 2018, Formycon AG as the actual operational unit, achieved a turnover of 23.72 million euros (previous year: 7.41 million euros). The EBITDA amounted to 9.08 million euros (previous year: minus 4.48 million euros), the operating result to 8.44 million euros (previous year: minus 5.07 million euros) and net earnings to 7.80 million euros (previous year: minus 5.11 million euros).

As planned, the number of employees at Formycon AG also increased. On the day of reporting in September the number was 93 (previous year: 75) and is expected to further increase slightly by the end of the year.

Dr. Nicolas Combé, member of the board and CFO of Formycon AG, gave the following statement with regard to the results: 'We are pleased with the positive development of the business and are very happy with the figures of the first nine months of 2018. The key value driver for our company continues to be the development progress of our biosimilar candidates. The whole team is working very consistently towards this and we are optimistic about being able to give detailed information on the development state of our projects very soon.'

About Formycon:
Formycon is a leading, independent developer of high-quality follow-on products for biopharmaceutical medicines known as 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.

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 more than 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. While the global market for biosimilars is currently more than USD 5.0 billion, industry experts expect this figure to grow up to USD 30 billion by the year 2025.

Contact:
Sabrina Müller
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
[e-mail] // 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.
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