Basilea Pharmaceutica

SW: BSLN

CHF596.9m market cap

CHF50.25 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 mold infections) and Zevtera (bacterial infections). Multiple licensing/distribution agreements are in place for Cresemba and Zevtera, which should drive top-line growth; revenues from these anti-infectives were up 56% y-o-y (FY18 CHF82m) and in February a $5m milestone was triggered from Pfizer. which markets Cresemba in Europe (ex Nordics), Russia, Turkey, Israel, China and Asia-Pacific. US Phase III registration trials have initiated for Zevtera in ABSSSI (top line H219) and in SAB (top line H221); both are required for a US FDA submission. Basilea’s oncology pipeline is spearheaded by in-licensed asset derazantinib (pan-FGFR inhibitor), which is in a Phase II registration study for intrahepatic cholangiocarcinoma that reported promising interim data in January. A Phase I/II study combing derazantinib with Roche’s PD-L1 antibody atezolizumab (Tecentriq) in patients with advanced urothelial cancer is expected to initiate mid-2019.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (fd) (CHFc)
P/E (x)
P/CF (x)
2016A 66.0 (41.6) (50.9) (505.74) N/A N/A
2017A 101.5 (12.2) (18.9) (178.36) N/A 28.5
2018E 124.0 (21.9) (29.6) (274.34) N/A N/A
2019E 137.3 (18.8) (26.7) (247.83) N/A N/A
Last updated on 21/02/2019
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 21/02/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (CHFm) 8.7
Forecast gearing ratio (%) 15
Price performance
%
1m
3m
12m
Actual (4.4) 10.2 (25.8)
Relative* (7.7) 4.4 (28.6)
52-week high/low CHF73.3/CHF38.7
*% relative to local index
Key management
David Veitch CEO
Donato Spota CFO