EQS-Adhoc: Formycon announces decision on Phase III trial with FYB206 and provides update on potential need to adjust the valuation of FYB202 and FYB201

Disclosure of inside information according to Article 17 of the Regulation (EU) No 596/2014

Formycon announces decision on Phase III trial with FYB206 and provides update on potential need to adjust the valuation of FYB202 and FYB201

• Formycon terminates Phase III study ("Lotus") for FYB206 following positive feedback from the U.S. Food and Drug Administration (FDA)
• Anticipated price reductions for Stelara^®1 biosimilars in the U.S. likely to require an adjustment in the valuation of FYB202
• Discussions initiated with commercialization partner Sandoz AG on the future U.S. commercialization strategy for FYB201/CIMERLI^®2 due to increasing price discounts

Planegg-Martinsried, Germany, February 17, 2025 – The Executive Board of Formycon AG (FSE: FYB, Prime Standard) (“Company”) has decided today to prematurely terminate the Phase III trial ("Lotus") for its biosimilar candidate FYB206. Based on an intensive scientific dialogue with the U.S. Food and Drug Administration (FDA), the Executive Board, after careful consideration, has concluded that the continuation of the study is no longer necessary for the development and approval of FYB206 in the U.S. The therapeutic comparability of FYB206 with the reference drug Keytruda^®3 can be sufficiently demonstrated using data from the ongoing parallel study in the melanoma indication ("Dahlia"), combined with a comprehensive analytical program. According to preliminary estimates, discontinuing the Phase III trial could lead to investment savings in the high double-digit million range over the next few years, positively impacting the Company’s cash flow statement and liquidity.

In coordination with commercialization partner Fresenius Kabi AG, as part of the imminent market launch of FYB202/Otulfi^™4 in the U.S., Formycon anticipates that the valuation model and balance sheet measurement for FYB202 will need to be reviewed and adjusted due to an emerging, significantly higher-than-expected price discount for biosimilars. Based on preliminary calculations, Formycon currently expects a non-cash impairment requirement in the high double-digit to low triple-digit million range.

Due to the increasing price discounts among ranibizumab providers in the U.S., Bioeq AG, the exclusive license holder of FYB201/CIMERLI^®, is currently in discussions with its commercialization partner Sandoz AG regarding the future commercialization strategy for FYB201/CIMERLI^® in the U.S. Based on the status of these discussions, Formycon currently expects that the commercialization of FYB201/CIMERLI^® will likely be temporarily paused. This would result in an extraordinary adjustment to the valuation model and the balance sheet measurement for FYB201, as well as the stake in Bioeq AG, amounting to a high single-digit to low double-digit non-cash million figure for the 2024 financial year. In this context, Bioeq AG is exploring alternative commercialization strategies for the U.S. Formycon will provide updates on further developments in due course.

Further details regarding the aforementioned matters and their specific financial implications for the company, including the forecast for the 2025 financial year, are currently being reviewed by the company and are expected to be communicated no later than with the publication of the final financial results for the 2024 financial year on March 27, 2025.

Formycon currently assumes that the key financial forecast figures for the 2024 financial year will not be affected by these adjustments. The company's net result, however, is expected to be negatively impacted by the impairment related to FYB202 and FYB201.

1) Stelara^® is a registered trademark of Johnson & Johnson
2) CIMERLI^® is a registered trademark of Coherus BioSciences, Inc
3) Keytruda^® is a registered trademark of Merck Sharp & Dohme LLC, a subsidiary of Merck & Co, Inc, Rahway, NJ/USA
4) Otulfi^TM is a trademark of Fresenius Kabi Deutschland GmbH in selected countries.

Contact:
Sabrina Müller
Director Investor Relations and Corporate Communications
Formycon AG
Fraunhoferstr. 15
82152 Planegg-Martinsried
Germany

phone +49 (0) 89 – 86 46 67 149
fax + 49 (0) 89 – 86 46 67 110
Sabrina.Mueller@formycon.com
www.formycon.com

 Disclaimer
Certain statements contained in this release may constitute "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements can generally be identified by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," or "aim," or the negative of these words or other variations of these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that, by their nature, are subject to significant risks and uncertainties and contingencies that are subject to change. Formycon does not and will not give any assurance that any forward-looking statement will be achieved or prove to be accurate. Actual future business, financial condition, results of operations and prospects may differ materially from those projected or anticipated in the forward-looking statements. Subject to applicable legal requirements, neither Formycon nor any other person intends to update, review, revise or revise any forward-looking statements in this release to reflect actual events or developments, whether as a result of new information becoming available, new developments occurring in the future or otherwise, nor does it undertake any such obligation.