Basilea Pharmaceutica

SW: BSLN

Market CapCHF554m

Last Close CHF42.84

Basilea is focused on oncology and infectious diseases. Its marketed products are Cresemba (an antifungal) and Zevtera (an anti-MRSA broad-spectrum antibiotic). The oncology R&D pipeline includes two clinical-stage assets, derazantinib and lisavanbulin.

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. Partners include Pfizer and Astellas, which market Cresemba in Europe (ex Nordics) and the United States respectively. In August 2019, 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 in H122 and both are required for a US NDA submission. Basilea’s oncology pipeline is spearheaded by derazantinib (FGFR inhibitor), which is currently in a Phase II potential registration study for intrahepatic cholangiocarcinoma and two Phase I/II studies in patients with advanced urothelial cancer and advanced gastric cancer. Lisavanbulin (tumour checkpoint controller) is in the expansion phase of a biomarker-driven Phase I/II study for glioblastoma.

Y/E Dec	Revenue (CHFm)	EBITDA (CHFm)	PBT (CHFm)	EPS (CHFc)	P/E (x)	P/CF (x)
2019A	134.4	(15.6)	(22.3)	(207.54)	N/A	N/A
2020A	127.6	(7.0)	(29.6)	(288.45)	N/A	N/A
2021E	141.4	(13.8)	(23.5)	(184.07)	N/A	N/A
2022E	140.5	(9.4)	(18.4)	(142.51)	N/A	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 20/10/2021