AIM:FARN

Stock Analysis Report

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Executive Summary

Faron Pharmaceuticals Oy operates as a clinical stage drug discovery and development company in Finland. More Details


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Faron Pharmaceuticals Oy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FARN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.1%

FARN

1.5%

GB Biotechs

-0.7%

GB Market


1 Year Return

101.4%

FARN

46.3%

GB Biotechs

-16.4%

GB Market

Return vs Industry: FARN exceeded the UK Biotechs industry which returned 47.5% over the past year.

Return vs Market: FARN exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

FARNIndustryMarket
7 Day-17.1%1.5%-0.7%
30 Day-29.3%7.6%0.7%
90 Day-33.3%8.7%-3.2%
1 Year101.4%101.4%47.4%46.3%-13.2%-16.4%
3 Year-65.3%-65.3%8.8%7.2%-9.3%-20.5%
5 Yearn/a39.1%36.1%15.2%-10.7%

Price Volatility Vs. Market

How volatile is Faron Pharmaceuticals Oy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Faron Pharmaceuticals Oy undervalued compared to its fair value and its price relative to the market?

20.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FARN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FARN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FARN is unprofitable, so we can't compare its PE Ratio to the XE Biotechs industry average.

PE vs Market: FARN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FARN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FARN is overvalued based on its PB Ratio (20.4x) compared to the GB Biotechs industry average (6.2x).


Next Steps

Future Growth

How is Faron Pharmaceuticals Oy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FARN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FARN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FARN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FARN is forecast to have no revenue next year.

High Growth Revenue: FARN is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FARN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Faron Pharmaceuticals Oy performed over the past 5 years?

-17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FARN is currently unprofitable.

Growing Profit Margin: FARN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FARN is unprofitable, and losses have increased over the past 5 years at a rate of 17.7% per year.

Accelerating Growth: Unable to compare FARN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FARN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (15.2%).


Return on Equity

High ROE: FARN has a negative Return on Equity (-194.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Faron Pharmaceuticals Oy's financial position?


Financial Position Analysis

Short Term Liabilities: FARN's short term assets (€13.2M) exceed its short term liabilities (€4.4M).

Long Term Liabilities: FARN's short term assets (€13.2M) exceed its long term liabilities (€2.6M).


Debt to Equity History and Analysis

Debt Level: FARN's debt to equity ratio (31.5%) is considered satisfactory.

Reducing Debt: FARN's debt to equity ratio has reduced from 103% to 31.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FARN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FARN has less than a year of cash runway if free cash flow continues to reduce at historical rates of 22.8% each year


Next Steps

Dividend

What is Faron Pharmaceuticals Oy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FARN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FARN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FARN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FARN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FARN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Markku Jalkanen (65 yo)

13.75yrs

Tenure

€226,532

Compensation

Dr. Markku Tapani Jalkanen, Ph.D., serves as a Partner and Advisor at Inveni Capital. Dr. Jalkanen founded Faron Pharmaceuticals Corp. (formerly Faron Pharmaceuticals Ltd.) in 2006 and has been its Chief E ...


CEO Compensation Analysis

Compensation vs Market: Markku's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD665.09K).

Compensation vs Earnings: Markku's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Juho Jalkanen
Chief Development Officer1.75yrs€273.48kno data
Markku Jalkanen
Founder13.75yrs€226.53k6.82%
€ 9.3m
Toni Hänninen
Chief Financial Officer1.33yrsno datano data
Mikael Maksimow
Vice President of Operationsno datano datano data
Matti Karvonen
Chief Medical Officer & VP of Drug Development4.42yrsno datano data
Juhana Heinonen
Chief Commercial Officer2.75yrsno datano data
Ilse Piippo
Regulatory Consultant3.67yrsno datano data

3.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FARN's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Markku Jalkanen
Founder13.75yrs€226.53k6.82%
€ 9.3m
Jonathan Kenneth Knowles
Chairman of Clevegen Scientific Advisory Board2.08yrs€33.69kno data
Gregory Brown
Independent Non-Executive Director3.42yrs€40.70k0.099%
€ 134.8k
Huaizheng Peng
Board Observer2.08yrs€36.20kno data
Frank Armstrong
Independent Non-Executive Chairman5.08yrs€73.80k0.14%
€ 187.9k
Matti Manner
Non-Executive Vice-Chairman5yrs€42.30k1.18%
€ 1.6m
John Poulos
Independent Non-Executive Director3.42yrs€40.60kno data
Sirpa Jalkanen
Member of Clevegen Scientific Advisory Board1.08yrsno datano data
Leopoldo Zambeletti
Independent Non-Executive Director5.08yrs€41.40k0.037%
€ 50.6k
David Adams
Member of Clevegen Scientific Advisory Board1.08yrsno datano data
Christophe Massard
Member of Clevegen Scientific Advisory Board1.08yrsno datano data

3.4yrs

Average Tenure

65yo

Average Age

Experienced Board: FARN's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19%.


Top Shareholders

Company Information

Faron Pharmaceuticals Oy's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Faron Pharmaceuticals Oy
  • Ticker: FARN
  • Exchange: AIM
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£135.763m
  • Shares outstanding: 46.81m
  • Website: https://www.faron.com

Number of Employees


Location

  • Faron Pharmaceuticals Oy
  • Joukahaisenkatu 6
  • Intelligate
  • Turku
  • Finland Proper
  • 20520
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FARNAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2015
FPHA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2015
FARONHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURNov 2015

Biography

Faron Pharmaceuticals Oy operates as a clinical stage drug discovery and development company in Finland. It has a pipeline of drug development projects focusing on acute trauma, cancer growth and spread, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 22:18
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.