First Berlin Equity Research has published a research update on Formycon AG (ISIN: DE000A1EWVY8). Analyst Simon Scholes reiterated his BUY rating and increased the price target from EUR 46.00 to EUR 49.00.

Abstract
Formycon is guiding towards 2025 revenue of €55m to €65m and EBITDA of €-10m to €-20m. Q1/25 numbers were low relative to full-year guidance reflecting the March launch of FYB202 (Stelara biosimilar) but should rebound strongly during Q3 and Q4 as FYB202 gains traction in the U.S. and Europe. In H2/25 Formycon also plans to book upfront payments in connection with commercialisation deals for FYB206 (Keytruda biosimilar) for one or more geographic regions. In addition, the early July receipt of funds from the issue of a €70m four-year corporate bond (coupon: EURIBOR +7%) significantly improves the company’s financial leeway and should eliminate the requirement for further equity capital which we had previously modelled. Ahead of the bond issue, Formycon’s cash runway extended into H1/26. The proceeds of the bond will act as a bridge until the company achieves EBITDA profitability, which according to management will be “ideally as early as 2026.? We maintain our Buy recommendation and raise the price target from €46 to €49 to reflect reduced financial and dilution risk following the issue of the bond. Upside potential: 85%.