First Berlin Equity Research has published a research update on Formycon AG (ISIN: DE000A1EWVY8). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from EUR 53.00 to EUR 50.00.

Abstract
A solid set of Q1 results coupled with positive recent newsflow suggest that Formycon will be able to reach FY/26 guidance for sales and EBITDA of €60-€70m and €0m-€10m respectively. The Stelara biosimilar FYB202 and the Keytruda biosimilar candidate, FYB206, each account for around one third of 2026 revenue guidance. In the last few weeks Formycon’s FYB202 commercialisation partner, Fresenius Kabi, has announced significant new contracts for the drug in both the U.S. and France. These contracts suggest FYB202 is gaining the traction necessary to push FY/26 sales close to ca. €20m. In February Formycon announced positive results of its pivotal phase 1 trial of FYB206. As far as we can ascertain, Formycon is the first and so far only non-Chinese company to successfully complete a pivotal trial of a biosimilar for Keytruda. Keytruda was the world’s best-selling drug in 2025 with sales of USD31.7bn. Formycon currently expects the earliest market entry of FYB206 after the expiry of market exclusivity of Keytruda in 2029 in the USA and after 2030 in the EU. However, being at the front of the pack of Keytruda biosimilar developers means that Formycon may be able to make an early start to discussions with Keytruda’s developer/manufacturer (Merck) on the timing of the FYB206 launch. Ideally, these talks will secure FYB206 a position in the first launch group. We expect a milestone payment for the submission of regulatory approval documentation to the FDA to be the largest element of FYB206 revenue this year. We maintain our Buy recommendation but lower our price target from €53 to €50 (upside: 156%). Recent positive newsflow notwithstanding, our lower price target mainly reflects a more conservative assessment of the long-term outlook for FYB202 in comparison with our most recent study of 20 November last year.