Formycon AG: Price Target Adjusted Amid Market Pressures

First Berlin Equity Research has revised its analysis of Formycon AG, maintaining a "Buy" recommendation while lowering the target price from €82 to €46. Analyst Simon Scholes cites higher than expected pricing pressures in the U.S. markets for Formycon's biosimilars, specifically FYB201 and FYB202, as a primary factor.

Despite these pressures, the FDA has waived the requirement for the FYB206 phase 3 trial, potentially reducing investment costs by a significant double-digit million euro sum. This decision contributes to the price target adjustment.

Formycon plans to write down FYB201 and FYB202 in its 2024 accounts by millions and further anticipate an annual 52% price erosion, up from previous estimates of 40%. This, along with an increased cash flow discount rate to 13.6%, reflects growing future price uncertainty.