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 49.00 to EUR 48.00.

Abstract
H1/25 revenue of €9.0m was low relative to full-year guidance of €55m to €65m. However, we see the topline rebounding strongly during the second half, and particularly during Q4 as FYB202 (Stelara biosimilar) sales gather momentum in the U.S. and Europe, and Formycon books upfront payments in connection with commercialisation deals for FYB206 (Keytruda biosimilar) for one or more geographic regions. Formycon is the first non-Chinese company to complete recruitment of a pivotal trial for a Keytruda biosimilar candidate. Results of the FYB206 study endpoint are expected in Q1 next year. 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 the reference product manufacturer (Merck) on the timing of the FYB206 launch. Ideally, these talks can secure FYB206 a position in the first launch group. Once Formycon has concluded one or more commercialisation deals for FYB206, each completed development step can lead to a milestone payment. We expect these milestone payments to be important in enabling Formycon to reach its medium-term guidance of positive EBITDA “ideally?as early as 2026 but no later than in?2027”. We maintain our Buy recommendation but have lowered the price target from €49 to €48 (upside: 122%), as we now take a more conservative view on FYB206 upfront payments in 2025 (€25m vs €35m previously). On the positive side, we now see reimbursed development services coming in at €18m for the full year (previously: €13.0m).