Basilea Pharmaceutica

SW: BSLN

Market CapCHF498m

Last Close CHF38.3

Basilea is focused on treating infectious diseases. Its marketed products are Cresemba (an antifungal) and Zevtera (an anti-MRSA broad-spectrum antibiotic). The company now plans to file for US approval for Zevtera .

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Investment summary

Basilea Pharmaceutica continues its positive wave of Q322 activity with the successful asset purchase and sub-licence agreement of its tyrosine kinase/polo-like kinase 1 (TTK/PLK1) inhibitor, BAL0891, to SillaJen (a privately held South Korean biotech). The deal will see Basilea receive up to US$14m (CHF13.5m) in upfront and near-term milestones, with potential future milestone payments of up to c US$320m (c CHF310m). The company is also entitled to tiered royalties on net sales, which will range from single- to double-digit percentages. We see this latest development as a positive indicator of management delivering on its intention to separate the oncology business by end-FY22. We have updated our financials to align with company guidance and value Basilea at CHF903.5m or CHF76.3/share.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2020A 127.6 (7.0) (29.6) (288.45) N/A N/A
2021A 148.1 1.9 (6.6) (56.90) N/A N/A
2022E 120.0 (10.4) (15.3) (129.40) N/A N/A
2023E 128.8 13.7 6.4 47.03 81.4 N/A
Industry outlook

There is an ever-increasing need for therapeutic agents that are efficacious against drug-resistant strains of bacteria (eg MRSA) or fungi. Hence the opportunities for Cresemba and Zevtera could be significant.

Last updated on 28/09/2022
Content on Basilea Pharmaceutica
Basilea Pharmaceutica – Oncology asset sales continue
Healthcare | research Update | 23 September 2022
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Basilea Pharmaceutica – Strategic streamlining – sale of oncology assets
Healthcare | research Flash note | 9 September 2022
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Basilea Pharmaceutica – To retire converts with senior secured and cash
Healthcare | research Flash note | 8 September 2022
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Share price graph
Balance sheet
Forecast net debt (CHFm) 89.9
Forecast gearing ratio (%) 83
Price performance
%
1m
3m
12m
Actual (3.2) (2.7) (13.2)
Relative* 3.7 2.9 (2.4)
52-week high/low CHF46.6/CHF29.9
*% relative to local index
Key management
David Veitch CEO
Adesh Kaul CFO
Dung Tran Investor relations coordinator