Basilea Pharmaceutica

SW: BSLN

CHF538.2m market cap

CHF45.3 last close

Basilea focuses on anti-infectives and oncology. Lead products are Cresemba (an antifungal), which is approved in the US and Europe, and Zevtera (an anti-MRSA broad-spectrum antibiotic), approved in many European and non-European countries for pneumonia.

Investment summary

Basilea has two approved hospital-based products: Cresemba (severe mould infections) and Zevtera (bacterial infections). Multiple licensing/distribution agreements are in place for Cresemba and Zevtera and should drive top-line growth, including Pfizer and Astellas, which market Cresemba in Europe (ex Nordics) and the US, respectively. In August, Basilea reported positive top-line data for Zevtera in the first cross-supportive Phase III study TARGET; top-line data from the ERADICATE study are expected H221, both are required for a US FDA submission. Basilea’s oncology pipeline is spearheaded by derazantinib (pan-FGFR inhibitor), which is in a Phase II registration study for intrahepatic cholangiocarcinoma. A Phase I/II study for derazantinib in patients with advanced urothelial cancer has now been initiated, using both a monotherapy and combination approach with Roche’s PD-L1 antibody atezolizumab (Tecentriq).

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2017A 101.5 (15.2) (18.9) (178.36) N/A 25.7
2018A 132.6 (22.3) (31.0) (289.19) N/A N/A
2019E 132.9 (19.9) (27.7) (256.54) N/A N/A
2020E 143.2 (5.8) (13.8) (127.65) N/A N/A
Last updated on 16/09/2019
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 Zevtera, Cresemba and Basilea’s oncology pipeline could be significant.

Last updated on 16/09/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (CHFm) 48
Forecast gearing ratio (%) 54
Price performance
%
1m
3m
12m
Actual 25.3 26.6 (26.9)
Relative* 22.3 25.1 (34.3)
52-week high/low CHF61.5/CHF34.1
*% relative to local index
Key management
David Veitch CEO
Donato Spota CFO

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