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Faron Pharmaceuticals Oy

AIM:FARN
Snowflake Description

Mediocre balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FARN
AIM
£41M
Market Cap
  1. Home
  2. GB
  3. Pharmaceuticals & Biotech
Company description

Faron Pharmaceuticals Oy operates as a clinical stage drug discovery and development company in Finland. The last earnings update was 74 days ago. More info.


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  • Faron Pharmaceuticals Oy has significant price volatility in the past 3 months.
FARN Share Price and Events
7 Day Returns
-12.7%
AIM:FARN
0.4%
GB Biotechs
0.2%
GB Market
1 Year Returns
35%
AIM:FARN
24.1%
GB Biotechs
-2%
GB Market
FARN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Faron Pharmaceuticals Oy (FARN) -12.7% -25.2% 80.3% 35% -55.6% -
GB Biotechs 0.4% 2.9% 4% 24.1% 11.8% 53%
GB Market 0.2% 1.3% 0.1% -2% 11.2% 6.3%
1 Year Return vs Industry and Market
  • FARN outperformed the Biotechs industry which returned 24.1% over the past year.
  • FARN outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.
Price Volatility
FARN
Industry
5yr Volatility vs Market

Value

 Is Faron Pharmaceuticals Oy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Faron Pharmaceuticals Oy. This is due to cash flow or dividend data being unavailable. The share price is £1.1.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Faron Pharmaceuticals Oy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Faron Pharmaceuticals Oy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:FARN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €-0.65
AIM:FARN Share Price ** AIM (2019-07-19) in GBP £1.1
AIM:FARN Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.114 €1.23
United Kingdom of Great Britain and Northern Ireland Biotechs Industry PE Ratio Median Figure of 5 Publicly-Listed Biotechs Companies 33.83x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Faron Pharmaceuticals Oy.

AIM:FARN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:FARN Share Price ÷ EPS (both in EUR)

= 1.23 ÷ -0.65

-1.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Faron Pharmaceuticals Oy is loss making, we can't compare its value to the GB Biotechs industry average.
  • Faron Pharmaceuticals Oy is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Faron Pharmaceuticals Oy's expected growth come at a high price?
Raw Data
AIM:FARN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Biotechs Industry PEG Ratio Median Figure of 5 Publicly-Listed Biotechs Companies 1.53x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Faron Pharmaceuticals Oy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Faron Pharmaceuticals Oy's assets?
Raw Data
AIM:FARN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €0.01
AIM:FARN Share Price * AIM (2019-07-19) in GBP £1.1
AIM:FARN Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.114 €1.23
United Kingdom of Great Britain and Northern Ireland Biotechs Industry PB Ratio Median Figure of 30 Publicly-Listed Biotechs Companies 2.92x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
AIM:FARN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:FARN Share Price ÷ Book Value per Share (both in EUR)

= 1.23 ÷ 0.01

103.06x

* Primary Listing of Faron Pharmaceuticals Oy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Faron Pharmaceuticals Oy is overvalued based on assets compared to the GB Biotechs industry average.
X
Value checks
We assess Faron Pharmaceuticals Oy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Faron Pharmaceuticals Oy has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-149.8%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Faron Pharmaceuticals Oy expected to grow at an attractive rate?
  • Unable to compare Faron Pharmaceuticals Oy's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Faron Pharmaceuticals Oy's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Faron Pharmaceuticals Oy's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:FARN Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:FARN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -149.8%
United Kingdom of Great Britain and Northern Ireland Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:FARN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:FARN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 0 -10 1
2019-12-31 0 -10 -7 1
AIM:FARN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 0 -21 -20
2018-09-30 1 -23 -24
2018-06-30 1 -25 -28
2018-03-31 1 -22 -25
2017-12-31 1 -18 -21
2017-09-30 2 -16 -17
2017-06-30 2 -14 -14
2017-03-31 2 -12 -12
2016-12-31 2 -9 -10
2016-09-30 0 -8 -9
2016-06-30 0 -7 -7
2016-03-31 1 -7 -7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Faron Pharmaceuticals Oy is high growth as no earnings estimate data is available.
  • Faron Pharmaceuticals Oy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:FARN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Faron Pharmaceuticals Oy Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FARN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31 -0.21 -0.21 -0.21 1.00
AIM:FARN Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 -0.65
2018-09-30 -0.79
2018-06-30 -0.94
2018-03-31 -0.85
2017-12-31 -0.76
2017-09-30 -0.64
2017-06-30 -0.52
2017-03-31 -0.47
2016-12-31 -0.42
2016-09-30 -0.36
2016-06-30 -0.31
2016-03-31 -0.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Faron Pharmaceuticals Oy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Faron Pharmaceuticals Oy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Faron Pharmaceuticals Oy has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Faron Pharmaceuticals Oy's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Faron Pharmaceuticals Oy does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Faron Pharmaceuticals Oy's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Faron Pharmaceuticals Oy's 1-year growth to the Europe Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Faron Pharmaceuticals Oy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Faron Pharmaceuticals Oy Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FARN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 0.21 -20.10 3.75 16.46
2018-09-30 0.54 -24.03 3.83 20.63
2018-06-30 0.86 -27.97 3.92 24.81
2018-03-31 1.18 -24.51 3.49 21.95
2017-12-31 1.50 -21.06 3.05 19.10
2017-09-30 1.86 -17.33 3.02 15.26
2017-06-30 2.22 -13.60 2.99 11.42
2017-03-31 2.10 -11.87 2.72 10.32
2016-12-31 1.97 -10.14 2.46 9.22
2016-09-30 0.44 -8.71 2.56 8.02
2016-06-30 0.49 -7.44 2.96 6.09
2016-03-31 0.50 -6.82 3.01 5.03
2015-12-31 0.52 -6.19 3.06 3.97
2015-09-30 0.74 -4.67 2.12 3.23
2015-06-30 0.95 -3.15 1.19 2.50
2015-03-31 0.93 -2.26 0.77 1.98
2014-12-31 0.91 -1.36 0.35 1.47
2013-12-31 0.20 -1.51 0.20 2.03
2012-12-31 -2.46 0.18 2.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Faron Pharmaceuticals Oy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Faron Pharmaceuticals Oy has efficiently used its assets last year compared to the GB Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Faron Pharmaceuticals Oy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Faron Pharmaceuticals Oy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Faron Pharmaceuticals Oy has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Faron Pharmaceuticals Oy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Faron Pharmaceuticals Oy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Faron Pharmaceuticals Oy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Faron Pharmaceuticals Oy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Faron Pharmaceuticals Oy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Faron Pharmaceuticals Oy Company Filings, last reported 6 months ago.

AIM:FARN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 0.37 2.13 4.07
2018-09-30 0.37 2.13 4.07
2018-06-30 6.73 2.11 11.16
2018-03-31 6.73 2.11 11.16
2017-12-31 4.74 2.43 9.31
2017-09-30 4.74 2.43 9.31
2017-06-30 9.48 2.50 10.33
2017-03-31 9.48 2.50 10.33
2016-12-31 8.40 2.18 11.48
2016-09-30 10.88 2.13 11.48
2016-06-30 8.40 2.15 8.86
2016-03-31 8.40 2.15 8.86
2015-12-31 11.18 1.69 11.07
2015-09-30 11.18 1.69 11.07
2015-06-30 1.43 1.69 2.28
2015-03-31 1.43 1.69 2.28
2014-12-31 -1.19 1.69 0.24
2013-12-31 -0.95 2.03
2012-12-31 -0.84 2.60
  • Faron Pharmaceuticals Oy's level of debt (577.8%) compared to net worth is high (greater than 40%).
  • Faron Pharmaceuticals Oy had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
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.

  • Faron Pharmaceuticals Oy has less than a year of cash runway based on current free cash flow.
  • Faron Pharmaceuticals Oy has less than a year of cash runway if free cash flow continues to grow at historical rates of 45.1% each year.
X
Financial health checks
We assess Faron Pharmaceuticals Oy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Faron Pharmaceuticals Oy has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Faron Pharmaceuticals Oy dividends. Estimated to be 1.22% next year.
If you bought £2,000 of Faron Pharmaceuticals Oy shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Faron Pharmaceuticals Oy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Faron Pharmaceuticals Oy's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:FARN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:FARN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.03 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Faron Pharmaceuticals Oy has not reported any payouts.
  • Unable to verify if Faron Pharmaceuticals Oy's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Faron Pharmaceuticals Oy's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Faron Pharmaceuticals Oy has not reported any payouts.
Future Payout to shareholders
  • The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.
X
Income/ dividend checks
We assess Faron Pharmaceuticals Oy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Faron Pharmaceuticals Oy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Faron Pharmaceuticals Oy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Faron Pharmaceuticals Oy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Markku Jalkanen
COMPENSATION €280,964
AGE 64
TENURE AS CEO 12.5 years
CEO Bio

Prof. Markku Jalkanen, Ph.D., serves as a Partner and Advisor at Inveni Capital. Prof. Jalkanen founded Faron Pharmaceuticals Corp. (formerly Faron Pharmaceuticals Ltd.) in 2006 and Chief Executive Officer since 2007 and served as its President since 2007. Prof. Jalkanen has been an Executive Director of Faron Pharmaceuticals Oy since October 24, 2006. He is one of Finland's biotechnology pioneers and was the Founder and Chief Executive Officer at Biotie Therapies Corp. in Finland. He has also held several Interim Chief Executive Officer, Board and Advisor positions in Finnish life science companies and related public organizations. Prof. Jalkanen served as Chairman of OY LX Therapies Ltd. Prof. Jalkanen has a strong international science background with more than 130 peer reviewed publications. Dr Jalkanen obtained a Masters in Medical Biochemistry from the University of Kuopio in 1977 and subsequently received a PhD in Medical Biochemistry from the University of Turku in 1982. Dr Jalkanen completed a side-laudatur examination in Molecular Biology from the University of Turku in 1981 and completed his post doctoral training at Stanford University, California between 1983 and 1986. Dr Jalkanen obtained the position of docent in Biochemistry from the University of Helsinki and the same qualification in Molecular and Cell Biology from the University of Turku in 1987 and 1992 respectively. Dr Jalkanen became a Professor at the University of Turku in January 1992.

CEO Compensation
  • Markku's compensation has increased whilst company is loss making.
  • Markku's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Faron Pharmaceuticals Oy management team in years:

1.5
Average Tenure
61
Average Age
  • The average tenure for the Faron Pharmaceuticals Oy management team is less than 2 years, this suggests a new team.
Management Team

Yrjö Erik Wichmann

TITLE
Vice President of Financing & Investor Relations
COMPENSATION
€217K
AGE
61
TENURE
0.1 yrs

Juho Jalkanen

TITLE
Chief Development Officer
COMPENSATION
€361K
AGE
41
TENURE
0.5 yrs

Markku Jalkanen

TITLE
Founder
COMPENSATION
€281K
AGE
64
TENURE
12.5 yrs

Toni Hänninen

TITLE
Chief Financial Officer
TENURE
0.1 yrs

Mikael Maksimow

TITLE
Vice President of Operations
AGE
43

Matti Karvonen

TITLE
Chief Medical Officer & VP of Drug Development
TENURE
3.2 yrs

Juhana Heinonen

TITLE
Chief Commercial Officer
TENURE
1.5 yrs

Ilse Piippo

TITLE
Regulatory Consultant
AGE
70
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Faron Pharmaceuticals Oy board of directors in years:

3
Average Tenure
64
Average Age
  • The tenure for the Faron Pharmaceuticals Oy board of directors is about average.
Board of Directors

Frank Armstrong

TITLE
Non-Executive Chairman
COMPENSATION
€78K
AGE
62
TENURE
3.8 yrs

Markku Jalkanen

TITLE
Founder
COMPENSATION
€281K
AGE
64
TENURE
12.8 yrs

Matti Manner

TITLE
Non-Executive Vice-Chairman
COMPENSATION
€44K
AGE
66
TENURE
3.8 yrs

Jonathan Kenneth Knowles

TITLE
Chairman of Clevegen Scientific Advisory Board
COMPENSATION
€34K
AGE
72
TENURE
0.8 yrs

Leopoldo Zambeletti

TITLE
Non-Executive Director
COMPENSATION
€43K
AGE
51
TENURE
3.8 yrs

Huaizheng Peng

TITLE
Board Observer
COMPENSATION
€36K
AGE
57
TENURE
0.8 yrs

Greg Brown

TITLE
Non-Executive Director
COMPENSATION
€47K
AGE
65
TENURE
2.2 yrs

John Poulos

TITLE
Non-Executive Director
COMPENSATION
€48K
AGE
64
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Faron Pharmaceuticals Oy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Faron Pharmaceuticals Oy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much Of Faron Pharmaceuticals Oy (LON:FARN) Do Insiders Own?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Faron Pharmaceuticals Oy is a smaller company with a market capitalization of UK£21m, so it may still be flying under the radar of many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that.

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Is Faron Pharmaceuticals Oy's (LON:FARN) CEO Salary Justified?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Markku Jalkanen's Compensation Compare With Similar Sized Companies. … Our data indicates that Faron Pharmaceuticals Oy is worth UK£17m, and total annual CEO compensation is €281k.

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Should You Be Concerned About Faron Pharmaceuticals Oy's (LON:FARN) Shareholders?

In this analysis, my focus will be on developing a perspective on Faron Pharmaceuticals Oy’s (LON:FARN) latest ownership structure, a less discussed, but important factor. … Therefore, it is beneficial for us to examine FARN's ownership structure in more detail. … See our latest analysis for Faron Pharmaceuticals Oy

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Before You Buy Faron Pharmaceuticals Oy's (LON:FARN), Consider This

Faron Pharmaceuticals Oy has a beta of 1.04, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements. … However, this is the opposite to what FARN’s actual beta value suggests, which is higher stock volatility relative to the market.

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Why I Sold Faron Pharmaceuticals Oy (LON:FARN)

Cash management is still not optimal and should be improved, but its overall debt level and interest coverage somewhat reduces my concerns around the sustainability of the business going forward. … One reason I do like FARN as a business is its low level of fixed assets on its balance sheet (9.46% of total assets). … FARN has virtually no fixed assets, which minimizes its downside risk.

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Faron Pharmaceuticals Oy (LON:FARN): Does The -72.28% Earnings Drop Reflect A Longer Term Trend?

Examining Faron Pharmaceuticals Oy's (AIM:FARN) past track record of performance is an insightful exercise for investors. … Check out our latest analysis for Faron Pharmaceuticals Oy How Did FARN's Recent Performance Stack Up Against Its Past? … Though Faron Pharmaceuticals Oy's past data is helpful, it is only one aspect of my investment thesis.

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Faron Pharmaceuticals Oy (AIM:FARN): Should The Recent EPS Drop Worry You?

Examining Faron Pharmaceuticals Oy's (AIM:FARN) past track record of performance is an insightful exercise for investors. … Check out our latest analysis for Faron Pharmaceuticals Oy Was FARN's recent earnings decline worse than the long-term trend and the industry? … Faron Pharmaceuticals Oy's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

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Faron Pharmaceuticals Oy (AIM:FARN): How Much Growth Is Left In Healthcare?

Moreover, the trend of below-industry growth rate is expected to continue in the future with FARN poised to deliver a -10.86% growth compared to the industry average growth rate of 32.43%. … FARN is a biotech industry laggard in terms of its future growth outlook. … If your initial investment thesis is around the growth prospects of FARN, there are other biotech companies that are expected to deliver higher growth in the future, and perhaps trading at a discount to the industry average.

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Why Faron Pharmaceuticals Oy's (AIM:FARN) CEO Pay Check Matters To You

Over the last year FARN released negative earnings of -£13M , which is a further decline from prior year's loss of -£7M. … Despite the fact that one size does not fit all, as compensation should account for specific factors of the company and market, we can estimate a high-level benchmark to see if FARN deviates substantially from its peers. … Usually I'd use market cap and profit as factors determining performance, however, FARN's negative earnings reduces the effectiveness of this method.

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Company Info

Description

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 organ traumas, vascular damage, and cancer immunotherapy. The company’s lead product candidate is Traumakine, a recombinant human IFN beta-1a, which is in Phase III clinical trial for the treatment of acute respiratory distress syndrome (ARDS). It also develops Clevegen, an immunotherapy candidate, designed to prevent tumor growth and metastasis that targets the tumor immune suppressor molecule; and D-ARDS, a diagnostic tool to estimate ARDS severity and to follow ARDS outcome. Faron Pharmaceuticals Oy has a collaboration with MediCity unit of Turku University Medical School. The company was founded in 2003 and is headquartered in Turku, Finland.

Details
Name: Faron Pharmaceuticals Oy
FARN
Exchange: AIM
Founded: 2003
£40,957,283
37,233,894
Website: http://www.faron.com
Address: Faron Pharmaceuticals Oy
Joukahaisenkatu 6,
Intelligate,
Turku,
Finland Proper, 20520,
Finland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM FARN Ordinary Shares London Stock Exchange AIM Market GB GBP 17. Nov 2015
Number of employees
Current staff
Staff numbers
25
Faron Pharmaceuticals Oy employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 22:33
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.