Last close As at 05/08/2026
CHF50.70
▲ 0.20 (0.40%)
Market capitalisation
CHF681m
Research: Healthcare
Management has provided an update on Basilea’s strategy to refocus the business on anti-infectives, as part of which, the company will cease all oncology activities by end-2022. Basilea now intends to engage in separate transactions for the oncology asset BAL0891 (a dual TTK/PLK1 inhibitor) and other preclinical assets, which will be concluded in H222. In addition, management has confirmed it will not expand the ongoing Phase II biomarker-driven trial investigating the use of lisavanbulin (a tumour checkpoint inhibitor) in treating recurrent glioblastoma. The company continues to explore partnering options for lisavanbulin. Finally, the rights to derazantinib (a pan-fibroblast growth factor receptor inhibitor) will be transferred back to Merck by the end of the year. Management has reiterated guidance that oncology-related expenses will not be material beyond 2022 and sustained profitability will be reached in 2023. In our view, the recent strategic update supports this guidance. We value Basilea Pharmaceutica at CHF847.7m or CHF71.6/share.
Basilea Pharmaceutica |
Anti-infective refocusing on schedule |
Strategy update |
Pharma and biotech |
27 June 2022 |
Share price performance
Business description
Analysts
Basilea Pharmaceutica is a research client of Edison Investment Research Limited |
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Management has provided an update on Basilea’s strategy to refocus the business on anti-infectives, as part of which, the company will cease all oncology activities by end-2022. Basilea now intends to engage in separate transactions for the oncology asset BAL0891 (a dual TTK/PLK1 inhibitor) and other preclinical assets, which will be concluded in H222. In addition, management has confirmed it will not expand the ongoing Phase II biomarker-driven trial investigating the use of lisavanbulin (a tumour checkpoint inhibitor) in treating recurrent glioblastoma. The company continues to explore partnering options for lisavanbulin. Finally, the rights to derazantinib (a pan-fibroblast growth factor receptor inhibitor) will be transferred back to Merck by the end of the year. Management has reiterated guidance that oncology-related expenses will not be material beyond 2022 and sustained profitability will be reached in 2023. In our view, the recent strategic update supports this guidance. We value Basilea Pharmaceutica at CHF847.7m or CHF71.6/share.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
127.6 |
(29.6) |
(288.5) |
0.0 |
N/A |
N/A |
12/21 |
148.1 |
(6.6) |
(56.9) |
0.0 |
N/A |
N/A |
12/22e |
109.5 |
(30.1) |
(254.1) |
0.0 |
N/A |
N/A |
12/23e |
128.1 |
14.0 |
161.1 |
0.0 |
22.3 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Our recent outlook details our valuation method and our rNPV model suggests a value for Basilea Pharmaceutica’s clinical oncology pipeline of CHF14.8 per share (CHF6.6 for derazantinib and CHF8.1 for lisavanbulin) or 20% of our total valuation. We see management's expected completion of separate transaction deals for the preclinical pipeline and BAL0891 as particularly encouraging, as we do not value these assets in our model. The approval of erdafitinib (2019), pemigatinib (2020) and infigratinib (2021) has dramatically altered the fibroblast growth factor receptor- inhibitor landscape in recent years. For this reason, the transferring of derazantinib rights back to Merck is a rational strategic decision from management, in our view.
With the background of recent milestone payments and approvals in China for Cresemba (isavuconazole) and the approaching Phase III readout for Zevtera in Staphylococcus aureus bacteraemia, we see the recent strategic update as supporting management’s guidance that sustainable operating profitability will be reached in 2023.
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Research: Healthcare
Vivesto capped off its 18-month strategic turnaround with reduced Q1 losses and a stated focus on its ‘string of pearls’ strategy to build its oncology pipeline through in-licensing and M&A. In March, it successfully completed a rights issue, generating net proceeds of SEK134.6m, extending its runway into 2024. This is sufficient to cover a number of clinical and commercial inflection points and execute its strategy. Key upcoming catalysts include the planned 2022 UK and German launches of Apealea with partner Inceptua. We have updated our model for clinical timelines and the Q1 results, which resets our valuation to SEK2.24bn (from SEK2.89bn previously). We note that the company will appoint a new CEO following the departure of current CEO Francois Martelet in July.