Basilea Pharmaceutica

SW: BSLN

CHF623.3m market cap

CHF52.3 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 continues to build on its key franchises, Cresemba and Zevtera, with FY19 contributions from both increasing 39% to CHF114m, driven mainly by Cresemba. Longer-term value creation is dependent on crystallising mid/late-stage oncology assets, with new trials initiated or expected for both derazantinib (multiple data points expected in 2020) and lisavanbulin (trial initiation by mid-year expected). We forecast break-even at the operating profit level in 2021 and value Basilea at CHF1.10bn.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2018A 132.6 (22.3) (31.0) (288.15) N/A N/A
2019A 134.4 (15.6) (22.2) (207.16) N/A N/A
2020E 134.4 (19.0) (26.8) (249.40) N/A N/A
2021E 151.6 3.6 (4.4) (41.34) N/A 78.7
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 20/02/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (CHFm) 91.3
Forecast gearing ratio (%) 78
Price performance
%
1m
3m
12m
Actual (13.2) 1.2 3.4
Relative* (15.6) (5.8) (13.7)
52-week high/low CHF60.2/CHF34.1
*% relative to local index
Key management
David Veitch CEO
Adesh Kaul CFO

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