Stock Market Collapse: SDAX Plummets by 40%
Shocking 40% Plunge in Formycon Stock on Monday
The biotechnology company Formycon experienced a dramatic decline in its stock price on Monday, with shares dropping as much as 40% at one point. This steep drop, surprising to many investors, was likely due to unexpectedly high price discounts on Formycon's drugs in the United States.
On Monday, the company announced it expects to incur significant write-downs due to these price discounts in the crucial U.S. market. In response, investors reacted negatively, causing the stock to plummet. Positive research findings surrounding a drug candidate could not reverse this trend. Initial expert reactions from RBC analysts acknowledged the setback but maintained their 'outperform' rating for the stock.
Given the current state of affairs, Formycon shareholders may wonder what their next steps should be. A substantial sell-off such as this one typically indicates underlying issues with the company, leading many investors to reassess their position. In the current tumultuous market, it might be prudent to pause and reconsider.
Shareholders who took a cautious approach and set a stop-loss, as recommended by BÖRSE ONLINE, would have been partially shielded from the Monday's crash.
In other related news, Formycon recorded a significant drop in revenue for the first quarter of 2025, down to €5.3 million compared to €17.7 million in the same period the previous year. The decline was mainly due to reduced milestone payments. Despite this revenue drop, Formycon expects significant growth in the second half of 2025 and remains focused on its R&D platform and pipeline execution. The company has also been strengthening its market position, with approvals in Canada and the UK for FIB22 Otafi, and an expansion of FIB-202 into new markets. Formycon has confirmed its full-year 2025 guidance, forecasting revenue between €55 million and €65 million.
The steep drop in Formycon's stock price on Monday, following the announcement of significant write-downs due to high price discounts in the US, indicates investors' concerns about the company's financial standing. In light of the current revenue drop and the recent stock-market trend, some experts suggest a moment of cautious reflection might be necessary for Formycon shareholders, as they reassess their investing strategies.
