Faron: The share price drops offers a chance to buy more

Translation: Original published in Finnish on 10/24/2025 at 07:00 am EEST

Last weekend, Faron published new BEXMAB trial results at the ESMO conference. On Monday, the company issued a release on the results and on Thursday, it organized a webcast. In the big picture, the main results of the trial have already been clear with the summer releases and the ASCO webcast. The new data complemented the big picture, which remained essentially unchanged. Our vision of Faron's future has remained unchanged. However, the share price has fallen, which has improved the risk/reward ratio. We reiterate our EUR 2.5 target price and raise our recommendation to Accumulate (was Reduce).

Updated information on bexmarilimab's effects in MDS was obtained

In BEXMAB, patients with intermediate-risk, high-risk, and very high-risk myelodysplastic syndrome (HR-MDS) receive a combination of Faron's investigational drug, bexmarilimab, and the standard drug, azacitidine. The main results of the trial were already published earlier in the summer. Among frontline MDS patients, the overall response rate (ORR) was 85% (17/20 patients) and the complete remission (CR) rate was 45% (9/20 patients). The response rate is very good, and particularly patients with low blastcounts responded well to the drug combination. However, due to the small number of patients and the trial design, strong conclusions about efficacy cannot yet be drawn.

Faron reported observing higher bexmarilimab binding to its Clever-1 target in the bone marrow (target engagement) in patients who responded well to treatment. We find this information biologically interesting. However, we believe treatment responses and future financing solutions are currently at the core of value creation. Overall, the release offered interesting details on bexmarilimab’s effect in MDS and, in addition to new data, reiterated the key trial results. 

Next big step is starting the Phase II/III MDS trial next year

Next, Faron is preparing for a Phase II/III trial in frontline MDS, based on which the company can apply for accelerated marketing authorization, provided that the results support it. The company plans to start the trial in Q2'26. The trial is randomized and controlled, meaning the data obtained will be of high quality and enable reliable conclusions. Faron's current cash reserves will last until Q1'26, so additional funding will be required to carry out the new trial.

Secured funding sufficient until Q1’26

In the early part of the year, Faron carried out a directed share issue of 12 MEUR and also agreed to a convertible bond of 35 MEUR, of which 15 MEUR has been drawn down to date. With these arrangements in place, the company states that the current cash reserves will suffice until Q1'26. Implementing the crucial phase of the MDS trial will, therefore, require significant new funding. Faron is seeking a partnership agreement with a larger pharmaceutical company to fund the research, though other funding options and combinations thereof are also possible.

The share price drop has increased the attractiveness of the stock

Our DCF model suggests a value of EUR 2.5 per share (unchanged), meaning that in our view, the risk/reward ratio is attractive again after the share price decline. The near future of share returns will be colored by a financing solution, for which information may be available fairly soon.