EQS-Adhoc: Formycon AG plans capital increase of approx. 5% of the share capital by way of an accelerated bookbuilding procedure to finance further growth

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Publication of inside information pursuant to Article 17 of Regulation (EU) No 596/2014
Ad hoc announcement // February 1, 2023

Formycon AG plans capital increase of approx. 5% of the share capital by way of an accelerated bookbuilding procedure to finance further growth

Munich – Formycon AG (ISIN: DE000A1EWVY8 / WKN: A1EWVY) ("Formycon” or “Company") intends to issue approx. 5% of the issued share capital of the Company, representing approx. 750,000 new shares (the "New Shares"). In this respect, the Management Board of the Company resolved, with the approval of the Supervisory Board of the Company, to increase the share capital of the Company against contributions in cash by partial use of the authorized capital of the Company. The Company’s existing shareholders’ subscription rights are excluded. The offering will be conducted by way of an accelerated bookbuilding procedure overnight. The New Shares will carry full dividend rights from 1 January 2022.

The anchor shareholders ATHOS KG (26.4%) and Active Ownership Capital (6.6%) have each agreed to support the capital measure and to subscribe for New Shares in the capital increase in proportion to their existing shareholding in the Company but committed to a combined minimum subscription of EUR 26.5 million.

The net proceeds from the capital increase will primarily be used to accelerate the ongoing development of Formycon's proprietary biosimilar candidates (FYB202, FYB206, FYB208, FYB209) to regulatory approval, as well as to expand its biosimilar pipeline and support its organic growth strategy. In addition, Formycon is considering integrating further assets along the value chain into the Company in order to accelerate its development into a highly specialized and globally active company in the biosimilars market segment. The capital measure also serves to strengthen the balance sheet, including the repayment of the drawn amount under the loan facility granted by ATHOS and Active Ownership Capital as part of the ATHOS transaction.

The New Shares will be offered without a prospectus by way of a private placement to selected investors in Germany and in other member states of the European Economic Area who are "Qualified Investors" within the meaning of Article 2 lit. e) of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017. In addition, the New Shares may also be offered to institutional investors in other selected jurisdictions. In the United States of America, the New Shares will only be offered for purchase to "Qualified Institutional Buyers" as defined in Rule 144A under the Securities Act of 1933.

The accelerated bookbuilding process will commence with immediate effect and is expected to close tomorrow prior to the commencement of trading, possibly already as early as the late evening of February 1, 2023. Formycon will announce the results of the Offering, including the final number of New Shares and the Placement Price per New Share, before the start of trading on February 2, 2023. The inclusion of the New Shares in trading on the Stock Exchange and the delivery of the New Shares are scheduled for February 7, 2023.

Following the private placement, Formycon will be subject to a lock-up obligation with market-standard exemptions for a period of six months.

Hauck Aufhäuser Lampe and Jefferies are acting as joint global coordinators and First Berlin as selling agent in the private placement.

Important Notice:
This document and the information contained herein are for informational purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities of the Company in the United States of America ("USA") or any other jurisdiction. This publication may not be distributed, published or circulated in the United States, Australia, Canada or Japan. The securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Company's securities have not been and will not be registered under the Securities Act or the applicable securities laws of Australia, Canada or Japan. There will be no public offering of shares of the Company.

The distribution of this communication may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Failure to comply with such restrictions may constitute a violation of the securities laws of such jurisdiction.

About Formycon:
Formycon is a leading, independent developer of high-quality biopharmaceutical medicines, especially biosimilars. Formycon AG is listed in the Open Market ("Scale") of the Frankfurt Stock Exchange (ISIN: DE000A1EWVY8 / WKN: A1EWVY).

About Biosimilars:
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 2025, 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. Currently, global sales of biosimilars are estimated at more than $15 billion. By 2030, analysts estimate that this figure could rise to over $60 billion.

Contact:
Sabrina Müller
Senior Manager Corporate Communications and Investor Relations
Formycon AG
Fraunhoferstr. 15
82152 Martinsried/Planegg/Germany
phone +49 (0) 89 - 86 46 67 149
fax + 49 (0) 89 - 86 46 67 110
Sabrina.Mueller@formycon.com // www.formycon.com

1549253  01-Feb-2023 CET/CEST