Press Release // Tuesday, March 26, 2019
Strategic Investor M&H Equity AG Subscribes Cash Capital Increase of
Euro 17.3 Million
- Increase in share capital of 577,397 shares with an issue price of EUR 29.90 per share
- Cash injection to be used primarily for further development of proprietary biosimilar projects
Munich - Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) announced on March 22, 2019 the private placement of a cash capital increase from the strategic Swiss investor M&H Equity AG. With the resolution by the Management Board and Supervisory Board, the company's share capital of currently EUR 9,422,603.00 will be increased to a total of EUR 10,000,000.00 by partially utilizing approved capital of EUR 577,397.00 to issue 577,397 new bearer shares with a computational proportion of the share capital of EUR 1.00 each in return for a cash investment.
The inward flow of funds amounts to EUR 17,264,170.30 in total and corresponds to an issue price per share of EUR 29.90. The Swiss company M&H Equity AG from Heerbrugg in the Canton of St. Gallen is a strategic investor with a long-term investment horizon. Oliver Fiechter, founder and Managing Partner of M&H Equity AG, commented on his involvement with Formycon as follows: "I'm very much looking forward to working with Formycon, and I see above-average growth potential in the company. Both the management and the business model impressed me, as did the fact that biosimilars will become increasing popular due to increasing cost pressure in global healthcare systems. When we are choosing our investments, the concept of sustainability most of all plays a very important role. The fact that Formycon AG, with its biosimilars, is keen to make access to important medicines easier for as many patients around the world as possible was an important investment criterion for us."
The funds raised by the capital increase are primarily to be used to expand the pipeline and develop the company's own biosimilar projects. "With Oliver Fiechter and M&H Equity AG, we have brought on board a strong strategic partner that fits very well with our company and from the support of which we will most certainly be able to benefit. We first and foremost want to advance the development of our projects with the acquired capital and, in so doing, further increase the value of the pipeline", says Dr. Nicolas Combé, CFO of Formycon AG.
About M&H Equity AG:
The Mountains & Hills Investment Group is an international investment manager and advisor focusing on private markets and selected public holdings. The Group has its own investment approach that combines investments in value-driven companies with shareholdings in innovative technology firms. Within its group, Mountains & Hills combines its own investment fund, a VC company and a vehicle for direct investments in the healthcare market. Through its investments, Mountains & Hills creates added value by helping companies to implement the opportunities made possible by digital technologies in their day-to-day business. This allows them to achieve above-average value growth for their investors.
Formycon is a leading, independent developer of high-quality follow-on products for biopharmaceutical medicines known as biosimilars. The company focuses on treatments in ophthalmology, immunology and on other key chronic diseases, covering the entire value chain from technical development to the clinical phase III as well as the preparation of dossiers for marketing approval. With its biosimilars, Formycon is making a major contribution towards providing as many patients as possible with access to vital and affordable medicines. Formycon currently has four biosimilars in development.
Since their introduction in the 1980s, biopharmaceuticals have revolutionized the treatment of serious diseases such as cancer, diabetes, rheumatoid arthritis, multiple sclerosis and eye diseases. In the coming years, many of these biotech drugs will lose their patent protection - and by 2020, medications with revenues of approximately USD 100 billion will be off patent. Biosimilars are follow-on versions of biopharmaceuticals, for which exclusivity has expired. They are approved via stringent regulatory pathways in highly regulated markets (such as EU, US, Japan, Canada, Australia) based on proven similarity of the biosimilar with the originator biopharmaceutical reference product. While the global market for biosimilars is currently more than USD 5.0 billion, industry experts expect this figure to grow up to USD 30 billion by the year 2025.
Corporate Communications and Investor Relations
phone +49 (0) 89 - 86 46 67 149
fax + 49 (0) 89 - 86 46 67 110
Sabrina.Mueller@formycon.com // www.formycon.com
This press release may contain forward-looking statements and information which are based on our current expectations and certain assumptions. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, performance of the company, development of the products and the estimates given here. Such known and unknown risks and uncertainties comprise, among others, the research and development, the regulatory approval process, the timing of the actions of regulatory bodies and other governmental authorities, clinical results, changes in laws and regulations, product quality, patient safety, patent litigation, contractual risks and dependencies from third parties. With respect to pipeline products, Formycon AG does not provide any representation, warranties or any other guarantees that the products will receive the necessary regulatory approvals or that they will prove to be commercially exploitable and/or successful. Formycon AG assumes no obligation to update these forward-looking statements or to correct them in case of developments which differ from those anticipated. This document neither constitutes an offer to sell nor a solicitation of an offer to buy or subscribe for securities of Formycon AG. No public offering of securities of Formycon AG will be made nor is a public offering intended. This document and the information contained therein may not be distributed in or into the United States of America, Canada, Australia, Japan or any other jurisdictions, in which such offer or such solicitation would be prohibited. This document does not constitute an offer for the sale of securities in the United States.
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