Formycon AG (FYB) AI Stock Analysis

• Market Cap: €430.13M
• Dividend Yield: N/A
• Average Volume (3M): 23.85K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.93
• Revenue Growth: -10.32%
• EPS Growth: -250.76%
• Country: DE
• Employees: 250
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -6.54
• Shares Outstanding: 17,664,427
• 10 Day Avg. Volume: 16,802
• 30 Day Avg. Volume: 23,852
• PEG Ratio: -0.49
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €47.67
• Price Target Upside: 95.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Formycon AG's overall stock score reflects significant financial challenges, particularly in profitability and cash flow, despite a strong balance sheet. The technical indicators are predominantly negative, with the stock trading below key moving averages and showing bearish momentum. Valuation concerns due to negative earnings further impact the score. While the company has financial resilience due to low leverage, the reliance on external financing and lack of profitability are key risks.

Positive Factors

Market Expansion

The planned market launch of the pre-filled syringe for FYB201 in various European regions could increase market penetration.

Regulatory Approval

The European Commission has granted central marketing authorization for FYB203, a biosimilar referencing Eylea, which is valid in all European Economic Area countries.

Topline Growth

The commercialization of FYB203 could help drive Formycon’s topline growth.

Negative Factors

Market Competition

Risks include failure of biosimilar candidates in clinical trials, failure to secure regulatory approval, and failure to achieve commercial success due to market competition.

Market Strategy

Sandoz has decided to temporarily suspend marketing activities in the U.S. due to ongoing price erosion and plans to reposition FYB201 in the U.S. after one year.

Price Discounts

Management expects that the valuation model and balance sheet measurement for FYB202 would need to be reviewed and adjusted due to an emerging, significantly higher-than-expected price discount for biosimilars.

Formycon AG Business Overview & Revenue Model

Company Description

Formycon AG is a leading biotechnology company based in Germany, specializing in the development and commercialization of biosimilar products. Operating primarily in the pharmaceutical and healthcare sectors, Formycon focuses on creating high-quality and cost-effective alternatives to existing biologics, thereby enhancing patient access to essential medications. The company is committed to delivering innovative solutions that meet the rigorous standards of safety and efficacy required in the biosimilar market.

How the Company Makes Money

Formycon AG generates revenue through the development and commercialization of biosimilars, which are biological products highly similar to already approved reference medicines. The company's primary revenue streams include licensing agreements, development partnerships, and product sales. Formycon collaborates with various pharmaceutical companies to co-develop biosimilars, sharing the risks and profits associated with bringing these products to market. Additionally, Formycon earns milestone payments and royalties through these strategic partnerships, contributing significantly to its earnings. The company's focus on high-demand therapeutic areas and adherence to regulatory standards further bolster its revenue potential.

Formycon AG Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
60.80M	77.70M	42.50M	36.61M	34.23M	33.16M
	Gross Profit
7.58M	23.30M	12.07M	10.11M	-2.19M	962.44K
	EBIT
-24.90M	-369.00K	-17.73M	-13.83M	-5.74M	-2.27M
	EBITDA
47.36M	81.05M	51.53M	-12.42M	-5.90M	-1.36M
	Net Income Common Stockholders
63.90M	75.80M	35.99M	-13.29M	-5.93M	-2.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.04M	27.04M	9.82M	25.18M	42.25M	22.35M
	Total Assets
890.36M	890.36M	853.70M	70.72M	75.60M	53.56M
	Total Debt
29.49M	29.49M	49.31M	5.28M	4.98M	0.00
	Net Debt
2.45M	2.45M	39.49M	-19.75M	-37.03M	-22.12M
	Total Liabilities
387.61M	387.61M	497.12M	14.82M	7.56M	5.34M
	Stockholders Equity
502.75M	502.75M	356.58M	55.89M	68.04M	48.21M
Cash Flow		Free Cash Flow
-42.10M	-30.60M	-45.75M	-14.48M	-5.86M	-2.52M
	Operating Cash Flow
-32.49M	-9.85M	-18.99M	-13.54M	-5.21M	-1.51M
	Investing Cash Flow
-17.19M	-17.38M	-37.07M	-3.93M	-650.00K	-5.71M
	Financing Cash Flow
53.66M	44.44M	40.85M	491.00K	25.75M	17.26M

Formycon AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FYB, the sentiment is Negative. The current price of 24.35 is above the 20-day moving average (MA) of 22.91, below the 50-day MA of 24.40, and below the 200-day MA of 43.99, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FYB.

Formycon AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAH3	67 Neutral	€11.23B	2.20		6.83%	―	―
FME	65 Neutral	€14.78B	23.90	4.37%	2.36%	0.10%	27.83%
BIO3	63 Neutral	€1.44B	44.96	5.13%	0.27%	6.09%	-79.21%
BION	60 Neutral	CHF1.59B	20.77	-19.26%	6.24%	1786.54%	-238.40%
FYB	54 Neutral	€430.13M	5.89	-26.06%	―	-10.32%	-250.76%
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.50%
EVT	48 Neutral	€1.36B	―	-20.51%	―	1.50%	-127.76%