First Berlin Equity Research has published a research update on Formycon AG (ISIN: DE000A1EWVY8). Analyst Simon Scholes reiterated his BUY rating and maintained his EUR 103.00 price target.
H1/22 sales of €17.6m (FBe: €16.0m; H1/21: €20.3m) and EBITDA of €-7.6m (FBe: €-8.0m; H1/21: €-9.7m) were close to our expectations. However, net income of €80m (FBe: €-9.0m; H1/21: €-10.6m) was boosted by an extraordinary profit of €90m in connection with the Athos transaction which completed in May. We had not included an estimate for this figure in our forecast. It is a non-cash item, whose tax implications will also be limited as only 5% of the amount is taxable. As we pointed out in our note of 30 August, we expect Formycon to generate a steady flow of positive news over the next few months. The highlight will be the launch of the Lucentis biosimilar, FYB201, in the EU and US in Q4. In addition, before the end of this year, we expect topline results from the phase 3 trial of FYB203 (reference product: Eylea), the disclosure of the FYB206 reference product, as well as the announcement of marketing partners for FYB202 (reference product: Stelara) and FYB203. We continue to advise investors to make use of the recent recoil in the Formycon share price to buy the share. We maintain our Buy recommendation and price target of €103.