H.C. Wainwright analyst Yi Chen has reiterated their bullish stance on FYB stock, giving a Buy rating today.
Yi Chen has given his Buy rating due to a combination of factors that highlight Formycon AG’s strategic and financial prospects. The company has made a decisive move by terminating the Phase 3 Lotus trial for FYB206, which was deemed unnecessary by the FDA due to the adequacy of the ongoing Phase 1 trial and comprehensive analytical data. This decision not only underscores Formycon’s expertise in biosimilar development but also results in significant cost savings estimated in the high double-digit million range over the coming years.
Furthermore, while there are challenges such as higher-than-expected price discounts for FYB202 and potential temporary pauses in the commercialization of FYB201, these are partially mitigated by the savings from the FYB206 program. The valuation, which incorporates a discounted cash flow analysis, suggests a substantial market value of $1.98 billion, translating into a per-share value of approximately $103 or €98. Despite certain risks, including regulatory approval and market competition, the overall positive outlook and strategic adjustments have led to the reiteration of a Buy rating.
According to TipRanks, Chen is an analyst with an average return of -13.5% and a 33.20% success rate. Chen covers the Healthcare sector, focusing on stocks such as Lexaria Bioscience, AngioDynamics, and Veru.
In another report released today, Hauck & Aufhaeuser also maintained a Buy rating on the stock with a €65.00 price target.