First Berlin Reaffirms Buy Rating for Formycon AG

First Berlin Equity Research has updated its analysis on Formycon AG, maintaining a "Buy" recommendation while raising the price target from €48 to €53. The recent Q3 revenue of €10.5 million surpassed expectations, yet Formycon still faces the challenge of earning €35.5 million in Q4 to meet its 2025 revenue guidance of €55-€65 million.

A significant advancement for Formycon is completing recruitment for a pivotal trial of FYB206, a Keytruda biosimilar. This positions Formycon advantageously for early market discussions with Merck, the maker of the reference product. Additionally, commercial agreements might generate an upfront payment of €20 million.

Formycon's fourth-quarter earnings are expected to benefit from increased sales of FYB202, boosted by its partnership with CivicaScript. The recent identification of Dupixent, a high-revenue reference product for FYB208, underpins the increased price target.