Basilea Pharmaceutica

SW: BSLN

CHF569m market cap

CHF47.9 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 continued to build on its foundations for growth in 2018, reporting FY18 revenues of CHF132.6m (+31%) and an operating loss of CHF24.1m (+41%), beating guidance for the year. Revenues benefit from the multitude of global licensing/distribution deals for launched assets Cresemba and Zevtera. The main revenue driver is Cresemba, whose sales growth has accelerated in the US and EU. R&D investment in the oncology pipeline continues. This represents the next pillar of growth and we anticipate further progress in 2019. We expect further in-licensing opportunities given the strength of the balance sheet (cash and financial investments CHF223m). We value Basilea at CHF1082m or CHF100/share.

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 27.2
2018A 132.6 (22.3) (31.0) (289.19) N/A N/A
2019E 134.4 (24.1) (31.9) (295.28) N/A N/A
2020E 149.5 3.2 (4.8) (44.64) N/A N/A
Last updated on 20/03/2019
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 20/03/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (CHFm) 32.4
Forecast gearing ratio (%) 35
Price performance
%
1m
3m
12m
Actual (5.3) 20.0 (28.1)
Relative* (6.8) 6.7 (32.8)
52-week high/low CHF73.3/CHF38.7
*% relative to local index
Key management
David Veitch CEO
Donato Spota CFO