Basilea Pharmaceutica

SW: BSLN

CHF688.6m market cap

CHF57.95 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 Pharmaceutica is a revenue-generating biotech company that is on the cusp of breaking even (2021e) and sustainable profitability thereafter. It has successfully brought two anti-infective drugs to the market: Cresemba (severe mould infections) and Zevtera (bacterial infections). Combined revenue contributions (as reported by Basilea, both assets are commercialised through partners) are expected to exceed CHF105m in FY19. Longer-term value creation is also dependent on crystallising the mid/late-stage oncology portfolio. Basilea is investing for future growth; multiple datapoints on derazantinib are expected in 2020. If data from the registrational FIDES-01 are particularly positive, they could form the basis of an accelerated approval in iCCA. We value Basilea at CHF1.18bn.

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 32.9
2018A 132.6 (22.3) (31.0) (289.19) N/A N/A
2019E 132.9 (19.9) (27.7) (256.57) N/A N/A
2020E 134.2 (15.9) (23.8) (220.90) 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 Zevtera, Cresemba and Basilea’s oncology pipeline could be significant.

Last updated on 17/01/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (CHFm) 42.3
Forecast gearing ratio (%) 48
Price performance
%
1m
3m
12m
Actual 21.6 41.5 11.6
Relative* 18.2 30.7 (8.3)
52-week high/low CHF58.0/CHF34.1
*% relative to local index
Key management
David Veitch CEO
Adesh Kaul CFO

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