Basilea Pharmaceutica

SW: BSLN

Market CapCHF421m

Last Close CHF32.55

Basilea is focused on infectious diseases and oncology. Its marketed products are Cresemba (an antifungal) and Zevtera (an anti-MRSA broad-spectrum antibiotic).

Investment summary

In February Basilea announced a strategic refocusing of its core anti-infective business in 2022, which it is separating out from its oncology assets for which it is exploring strategic options. Strong FY21 results were driven by key anti-infective assets, Cresemba and Zevtera, which contributed 65% of the year’s non-deferred revenue growth. Global Cresemba sales were over US$300m in FY21 resulting in significantly increased royalty and milestone payments. Management envisages sustainable profitability and positive operating cashflow from 2023. Basilea is awaiting results from the key ERADICATE study of Zevtera in bloodstream infections (top-line data in mid 2022). If positive, this will complete the data package needed for NDA submission, paving the way for entry to the US antibiotic market. In oncology, potential value uplift could come from positive readouts from lead asset derazantinib in trials for intrahepatic cholangiocarcinoma (FIDES-01) and gastric cancer (FIDES-03). Readouts are expected from both in H122.

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	109.5	(21.5)	(30.1)	(254.06)	N/A	N/A
2023E	128.1	22.6	14.0	161.06	20.2	N/A

Industry outlook

There is an ever-increasing need for therapeutic agents that are efficacious against drug-resistant strains of bacteria (eg MRSA), fungus or cancer. Hence, the opportunities for Cresemba, Zevtera and Basilea’s oncology pipeline could be significant.

Last updated on 24/05/2022