Basilea Pharmaceutica — Strength in numbers

Basilea Pharmaceutica (SIX: BSLN)

Last close As at 27/03/2024

CHF37.75

0.25 (0.67%)

Market capitalisation

CHF492m

More on this equity

Research: Healthcare

Basilea Pharmaceutica — Strength in numbers

Basilea reported a definable FY17, as a multitude of licensing/distribution agreements announced in 2016/17 for launched anti-infective drug assets Cresemba (isavuconazole) and Zevtera (ceftobiprole) aided reported product sales, royalty and milestone income. Total revenues grew 54% to CHF101.5m, of which CHF16.3m related to product sales and CHF15.0m to royalty income. Operating losses declined by 68% to CHF14.1m. For 2018, we expect operating losses to reduce further as higher R&D costs are offset by growth in total revenues. We value Basilea at CHF1,231m.

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Written by

Healthcare

Basilea Pharmaceutica

Strength in numbers

FY results

Pharma & biotech

8 March 2018

Price

CHF65.10

Market cap

CHF768m

US$1.07/CHF

Net cash (CHFm) at 31 Dec 2017

114.5

Shares in issue (including 1m treasury shares)

11.8m

Free float

91.46%

Code

BSLN

Primary exchange

SIX

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(8.5)

(14.5)

(22.1)

Rel (local)

(6.5)

(9.7)

(23.5)

52-week high/low

CHF91.0

CHF65.1

Business description

Basilea Pharmaceutica is focused on anti-infectives and oncology. Its lead products are Cresemba (an antifungal), which is approved in the US and Europe, and Zevtera (an anti-MRSA broad-spectrum antibiotic), approved in major European and several non-European countries for pneumonia. The R&D pipeline includes two clinical-stage assets for cancer resistance.

Next events

Zevtera initiate Phase III SAB US study

Mid-2018

Phase I/IIa data BAL101553

2018

Analysts

Dr Susie Jana

+44 (0)20 3077 5700

Dr Daniel Wilkinson

+44 (0)20 3077 5734

Basilea Pharmaceutica is a research client of Edison Investment Research Limited

Basilea reported a definable FY17, as a multitude of licensing/distribution agreements announced in 2016/17 for launched anti-infective drug assets Cresemba (isavuconazole) and Zevtera (ceftobiprole) aided reported product sales, royalty and milestone income. Total revenues grew 54% to CHF101.5m, of which CHF16.3m related to product sales and CHF15.0m to royalty income. Operating losses declined by 68% to CHF14.1m. For 2018, we expect operating losses to reduce further as higher R&D costs are offset by growth in total revenues. We value Basilea at CHF1,231m.

Year
end

Revenue (CHFm)

PBT*
(CHFm)

EPS*
(CHF)

DPS
(CHF)

P/E
(x)

Yield
(%)

12/16

66.0

(50.9)

(5.06)

0.0

N/A

N/A

12/17

101.5

(18.9)

(1.78)

0.0

N/A

N/A

12/18e

113.6

(24.0)

(2.23)

0.0

N/A

N/A

12/19e

137.3

(11.4)

(1.06)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Numerous partnerships aid anti-infectives growth

Cresemba is currently available in the US, Nordic regions and Europe through partners (Astellas, Unimedic and Pfizer, respectively). We anticipate market share growth in launched territories to be supported by new roll-outs over 2018/19/20 (depending on whether MAA has been granted or if a regulatory submission is the next step). Zevtera will benefit from partner Cardiome launching the product in additional European countries; however, the significant value driver for Zevtera is the US market (the largest market by value for branded hospital antibiotics).

Financial capital available to focus on the next wave

With Cresemba and Zevtera’s commercialisation largely in the hands of partners, Basilea can turn its focus to its next pillars of growth: Zevtera’s Phase III US clinical trial programme in two new indications (we forecast US peak sales of $317m in 2027); progressing the early- to mid-stage portfolio (BAL101553 and BAL3833 targeting cancer resistance); and bolstering the oncology and infectious disease pipeline further through in-licensing and internal innovation.

2018 guidance achievable; 2020 profit possible

Basilea has provided financial guidance for FY18; total revenues are expected at CHF105-115m, with royalty and milestone contributions from Cresemba and Zevtera expected at CHF60-65m. Basilea expects operating loss in the region of approximately CHF10-20m in 2018. We forecast that sustainable profitability from 2020 is possible (depending on the timing of milestone payments received).

Valuation: rNPV of CHF1,231m or CHF114/share

Our revised valuation of CHF1,231m (from CHF1,222m) reflects changes to our 2018 forecasts following guidance. Our valuation is based on Cresemba (worldwide) and antibiotic Zevtera (excluding the US), plus net cash of CHF114.5m at 31 December 2017. We also include risk-adjusted contributions for Zevtera US (ABSSSI trial underway, SAB trial to start mid-2018) and the earlier-stage pipeline.

2017 an all-time high as revenue exceeds CHF100m

Basilea reported a solid set of 2017 numbers, driven by product sales (Cresemba for mould infections and Zevtera/Mabelio for bacterial infections), royalty income and contract revenues. Total revenues were reported at CHF101.5m for FY17 (+54%), including product sales contributions from Cresemba and Zevtera of CHF16.3m (CHF7.1m in FY16); we assume the bulk of product sales relate to Cresemba – actual numbers by individual assets are not disclosed. Basilea reported contract revenue (including revenue recognition from upfront and milestone payments that were recorded as deferred revenues) of CHF74m (CHF57.7m in FY16), which included CHF31.9m (CHF19.9m in 2016) of income relating to licence agreements with Astellas and Pfizer for Cresemba, and CHF37.7m (CHF37.7m in 2016) recognised from the initial CHF224.1m upfront payment in 2012 relating to the global distribution agreement for Toctino. The US rights for Toctino were returned to Basilea in 2016 and we anticipate the final revenue recognition of CHF23.7m to fall into reported revenues for 2018. Contract revenues also include royalties on US and European Cresemba sales from licence partners of CHF15.0m (CHF7.3m in FY16). Basilea received CHF5.0m in a first sales milestone from partner Astellas as Cresemba reached a predetermined sales number in the US. Total revenues also include CHF10.5m of Biomedical Advanced Research and Development Authority (BARDA) reimbursements relating to Phase III clinical studies for ceftobiprole.

Basilea reported a 68% reduction in operating loss to CHF14.1m in 2017 (CHF43.9m in FY16), versus guidance of CHF1m operating loss/month and our estimate of CHF14.5m for 2017. Net R&D expenses were higher than 2016 (CHF53.5m, compared to CHF48.4m), reflecting progression of the internally developed pipeline. Basilea reported an operating loss in 2017 of CHF14.1m versus a loss of CHF43.9m in 2016; the reduction of loss is mainly due to the significant uplift in total revenues as well as slightly lower operating expenses; higher R&D costs offset reductions in SG&A.

Basilea has provided financial guidance for FY18 for total revenues of CHF105-115m, with royalty and milestone contributions from Cresemba and Zevtera expected at CHF60-65m. Basilea expects operating loss in the region of approximately CHF10-20m in 2018. Guidance does not include the potential impact of any in-licensing deals.

We anticipate gross R&D costs (we no longer net BARDA payments from R&D from 2018, but instead include the contribution as revenues) in the region of CHF85.0m and CHF95.0m in 2018 and 2019, respectively, as Basilea invests in the US Phase III ceftobiprole programme and development of the early- to mid-stage oncology portfolio. This consists of drugs that target cancer resistance (BAL101553 and BAL3833). Nonetheless, growth in the top line should mitigate growth in operating costs from 2019 and we anticipate sustainable profitability from 2020 – the two major swing factors being timing and amount of milestones, actual R&D expenses for the year and any potential in-licensing deals.

Basilea reported cash and cash equivalents of CHF310.7m at year-end December 2017 (CHF289m at year-end December 2016). Our financial model suggests that current cash should be sufficient to fund operations beyond 2019, even in the absence of any milestone payments.

Multitude of deals in 2017 to seal future sales growth

During 2017, Basilea announced multiple licensing deals for its commercially available products, Cresemba and Zevtera. This included several distribution deals: Zevtera (Cardiome in Europe [excluding Nordic countries] and Israel); and Zevtera and Cresemba (Avir Pharma in Canada). Additionally, Basilea signed two notable licence agreements: 1) Zevtera in China with Shenzhen China Resources Gosun (CR Gosun); and 2) the major licensing deal with Pfizer for Cresemba, which initially covered Europe (ex-Nordics), Russia, Turkey and Israel, but which was then expanded to include China and 16 countries within the Asia-Pacific region. Exhibit 1 highlights the existing partnerships for both Cresemba and Zevtera; we note that in many instances partners have chosen to in-license both products, given the significant overlap in the physician prescribing base. We note that licence and distribution agreements now cover over 115 countries for Cresemba and 85 countries for Zevtera worldwide, and that the potential regulatory and sales milestones in aggregate for Cresemba and Zevtera under these agreements total US$1.1bn (but is dependent on pre-specified milestones for each product in individual territories being reached).

Exhibit 1: Cresemba and Zevtera partners/distribution agreements

Product

Partner/distributor *

Territory

Comments

Cresemba

Astellas

US

CHF117m upfront and regulatory milestones received with up to CHF290m of sales milestones (CHF5m of which was received in FY17). Tiered royalty starting in the mid-teens and ramping up to the mid-20s on sales.

Cresemba

Pfizer

Over 40 countries in Europe (excluding Nordics), Russia, Turkey and Israel. Extended to include China and 16 Asia-Pacific countries

CHF70m upfront and up to US$427m sales and regulatory milestones, plus mid-teens in sales royalties.

$3m upfront payment and up to ~$223m in additional payments, dependent on the achievement of pre-specified regulatory and sales milestones and mid-teen royalties.

Zevtera

Cardiome

Europe (excluding Nordics) and Israel

Upfront CHF5m and regulatory and commercial milestone payments. Participate in sales through a transfer price.

Cresemba and Zevtera

Unimedic Pharma*

Nordic countries, including Sweden, Denmark, Norway, and Finland

Upfront and sales milestone payments. Participate in sales through a transfer price.

Cresemba and Zevtera

Grupo Biotoscana (GBT)*

19 countries in Latin America, including Brazil, Mexico, Argentina and Colombia

CHF11m upfront, plus milestone payments. Participate in sales through a transfer price. First launch in LatAm in March 2018 in Argentina.

Cresemba

Asahi Kasei Pharma (AKP)

Japan

CHF7m upfront and up to CHF60m regulatory and commercial milestone payments, plus double-digit tiered royalties.

Zevtera

Shenzhen China Resources Gosun Pharmaceutical

China

CHF3m execution payment, plus up to CHF145m in additional payments on achievement of regulatory and commercial milestones, plus double-digit tiered royalties.

Cresemba and Zevtera

Avir Pharma*

Canada

Upfront and sales milestone payments. Participate in sales through a transfer price.

Cresemba and Zevtera

HIKMA*

MENA region

Upfront and sales milestone payments. Participate in sales through a transfer price.

Source: Edison Investment Research, Basilea Pharmaceutica. Note: *Distribution agreements where Basilea supplies product as a transfer price.

US sales of Cresemba growing steadily

Cresemba (isavuconazole) is a broad-spectrum antifungal for the treatment of severe, life-threatening fungal infections. In the US, partner Astellas has reported sales of $77m for calendar year 2017 (+67%), which triggered the first sales milestone payment of $5m to Basilea. Basilea is entitled to a tiered royalty on Cresemba sales, starting in the mid-teens and ramping up to the mid-20s, with up to CHF290m of sales milestones (CHF5m of which was received in FY17).

While the exact structure of the milestone deal with Astellas is not disclosed), we model that further sales milestones payments will be triggered when Cresemba sales in the US hit $100m, which we forecast to be in 2019. Our peak sales forecast for Cresemba includes $250m for the US opportunity in 2022; we believe Cresemba could reach our expectations at its current sales trajectory.

Pfizer launched Cresemba in Spain in November 2017, so the product is now available in the top five EU markets and Austria. In addition, Swissmedic has granted marketing authorisation for Switzerland. Distribution partner Unimedic has launched Cresemba into the Nordic countries. We believe Pfizer is in an optimal position to capitalise on Cresemba’s unique profile among antifungals (broad-spectrum activity plus lower toxicity); furthermore, the extension of Cresemba’s global footprint at this stage (China and 16 countries in the Asia-Pacific region) highlights Pfizer’s commitment to the product in areas outside Europe. We note that Basilea estimates (source: QuintilesIMS SMART MIDAS May 2017) that the top five European countries represent 32% of the global antifungal market and the US represents 24%. We believe Pfizer is well positioned to target a wider range of hospitals and patients than Basilea was able to and we forecast a peak penetration of 45% in Pfizer’s European markets. We have not isolated Pfizer sales in China and the Asia-Pacific region at present, which are presently bundled into our RoW opportunity. We forecast total peak sales for Cresemba of US$0.87bn. Basilea will no longer benefit from booking Cresemba sales in Pfizer-partnered markets; however, it could benefit from substantial milestone payments and royalties on sales. Furthermore, we expect a decrease in the commercialisation costs for Cresemba in Europe, currently borne by Basilea in 2017. In other partnered territories (Canada, Nordics, Latin America and the MENA region), Cresemba’s sales will be booked at the product transfer price to the relevant partner plus prespecified commercial milestones. In Japan, following positive Phase I studies, partner Asahi Kasei Pharma is on track to start the isavuconazole Phase III registration study during 2018.

Zevtera’s fortunes reside in US Phase III outcome

Zevtera/Mabelio (ceftobiprole) is a broad spectrum antibiotic for the treatment of Gram-positive, including MRSA (methicillin-resistant Staphylococcus aureus) infections, which are resistant to a number of existing antibiotics, and Gram-negative bacterial infections, including Pseudomonas. Zevtera was approved in Europe for hospital-acquired and hospitalised community-acquired pneumonia (excluding ventilator-associated pneumonia) towards the end of 2013. Uptake in this market remains slow as sales of antibiotics take time to build post-launch due to the requirement for regional reimbursement across Europe and the need to be added to individual hospital formularies, microbial stewardship programmes and a tendency to keep new antibiotics in reserve use.

Zevtera is currently not approved in the US (further clinical studies are needed to secure approval), where we believe the bulk of its sales opportunity resides; in terms of value, the US in 2016 accounted for 59% of anti-MRSA antibiotics and 70% of the branded hospital antibiotic market. Basilea has initiated the first of two cross-supportive Phase III clinical trials required for regulatory approval of ceftobiprole; the Phase III Special Protocol Assessments (SPAs) have been agreed with the FDA for both the Staphylococcus aureus bacteraemia (‘SAB’, bloodstream infections) and acute bacterial skin and skin structure infections (ABSSSI) trials. Both trials will be needed to support a US NDA submission. The ABSSSI skin study could be used to support post-marketing label extension in this indication in countries where Zevtera is commercially available. The ABSSSI study started enrolment of patients in February 2018. The trial aims to recruit 674 patients with ABSSSI who require treatment with intravenous antibiotics. This double-blind, multi-centre trial will compare ceftobiprole monotherapy versus vancomycin plus aztreonam. Unlike ceftobiprole (which has both gram-negative and gram-positive activity), vancomycin has no activity against gram-negative bacteria, hence the necessary addition of aztreonam. We expect the ABSSSI study to have a duration of 18-24 months, so top-line data could be available in late 2019.

SAB is an indication where few antibiotics are currently approved and which the FDA considers to be an area of unmet need; therefore, the SAB study could further differentiate Zevtera from available cephalosporins. The 390-patient, multi-centre study is expected to start in mid-2018 and recruitment will include patients with endocarditis and other forms of complicated SAB; a three-year duration implies that data are due in 2021. A US launch date of 2023 for ceftobiprole could be feasible, with an initial focus of bacteraemia and ABSSSIs.

Critically, the funding for these trials plus the potential trial in community-acquired pneumonia is in place, with up to $108m from BARDA and Basilea funding approximately 30% of the anticipated costs for the Phase III programme). BARDA is a division of the US Department of Health and Human Services Office of the Assistant Secretary for Preparedness and Response.

Our EU peak sales expectations (based on peak penetration) are a modest $60.7m in 2023 (for the currently approved indications). We anticipate that peak sales in the different regions will likely not be reached at the same time, given that launches in China and the US are later than in Europe and other RoW countries. Our RoW peak sales forecasts are $168m in 2025, plus US peak sales of $317m in 2027, which is predicated on securing a partner. Phase III data from the US trials, if positive, could be used to expand Zevtera’s EU/RoW label to include SAB and ABSSSI indications. Our current peak sales estimates for EU/RoW do not include these indications; therefore this could provide upside to our financial forecasts.

Pipeline update

With both Zevtera and Cresemba’s commercialisation strategy largely in the hands of partners, Basilea can turn its focus to its next pillars of growth: Zevtera’s Phase III US clinical trial programme (see above); the early- to mid-stage products (BAL101553 and BAL3833), which are targeting cancer resistance; and bolstering the oncology and infectious disease pipeline further through in-licensing.

BAL101553 and BAL3833 preliminary data expected in 2018

To complement the primary focus on anti-infectives, Basilea also has an early- to mid-stage pipeline focused on oncology products that target resistance to current traditional chemotherapies – novel tumour checkpoint controller BAL101553 and RAF kinase inhibitor BAL3833. There could be synergies between the anti-infectives and oncology pipelines, as a large number of invasive fungal and bacterial infections develop in cancer patients that are immunocompromised due to treatment with aggressive chemotherapies.

BAL101553 has part-completed two dose escalation studies in patients with solid tumours (oral once-a-day dosing, and weekly 48-hour IV infusion). The maximum tolerated dose (MTD) has been established and data will be presented at an upcoming scientific conference this year. The Phase I dose-escalation study in a separate glioblastoma arm of the oral study is expected to be completed in the first half of 2018. Furthermore, in 2017 Basilea entered into a clinical agreement with the Adult Brain Tumour Consortium (ABTC) to test BAL101553 in newly diagnosed glioblastoma patients; the ABTC initiated this oral Phase I combination with radiotherapy at end-2017.

BAL3833 is a pan-RAF/SRC kinase inhibitor in Phase I development in advanced solid tumours. Preclinical data suggest that BAL3833 has activity in models resistant to current BRAF inhibitors and in KRAS-driven cancer models, suggesting it could have clinical utility in major tumour types beyond BRAF-driven melanoma. It is currently being tested in a Phase I dose-escalation study; patient enrolment is ongoing and the study aims to determine the maximum tolerated dose.

See our note ‘The future looks bright’ for more details on the pipeline.

Valuation

Our updated Basilea valuation is CHF1,231m (from CHF1,222m previously), primarily as a result of tweaking our 2018 forecasts following guidance. Additionally, we roll forward our DCF, update US$/CHF FX to 1.07 and adjust for a higher net cash position at end-December 2017 (CHF114.5m vs CHF57.3m at end-June 2017). Our valuation is based on an NPV analysis, which includes the main portfolio of products and net cash. The breakdown of our valuation is shown in Exhibit 2.

Exhibit 2: Basilea rNPV valuation

Product

Indication

Launch

Peak sales (US$m)

NPV
(CHFm)

Probability

rNPV (CHFm)

NPV/share (CHF/share)

Cresemba (isavuconazole)

Severe fungal infections

2015 (US); 2016 (EU); 2018 (RoW); 2020 Japan

873

963.6

75 -100%*

916.3

84.8

Zevtera/Mabelio (ceftobiprole)

Severe bacterial infections

2015 (EU); 2018 (RoW); 2023 (US); 2023 (China)

550

214.5

75-100%**

174.0

16.1

BAL101553

Tumour resistance

2023

500

135.6

20%

19.7

1.8

BAL3833

Tumour resistance

2024

500

99.9

15%

6.2

0.6

Net cash/(debt)

 

 

 

114.5

100%

114.5

10.6

Valuation

 

 

 

1,528.1

 

1,230.8

114.0

Source: Edison Investment Research. Note: *100% probability for the US and EU, 75% for RoW and Japan. **100% probability for the EU, 75% probability for China, RoW and the US.

Based on $0.873bn peak sales, Cresemba is worth CHF920.5m. In the US, Cresemba is partnered with Astellas and our valuation includes tiered future royalties on sales starting from the mid-teens and ramping up to the mid-20s. Basilea is also entitled to up to CHF290m of sales-related milestones (CHF5m of which was received in FY17), some of which are included in our valuation. In the EU, our sales assumptions are based on Pfizer’s ability to reach more patients as a result of a larger salesforce and existing infrastructure. We assume a 15% royalty, and on peak sales in the EU of CHF400m Basilea would collect CHF60m. Of the $427m in regulatory and sales milestones which Basilea is eligible to receive from Pfizer, we have included CHF280m in our model in the 2017 to 2025 timeframe. At this point, we crudely model the China and Asia-Pacific opportunity by increasing our RoW penetration rates and trajectory of sales pick-up. More visibility on launch or communication of eligible patient populations in these regions will prompt us to refine our modelling assumptions. For the rest of the world (excluding the US and the EU), we assume a rising transfer pricing on sales of 35-50% for both Cresemba and Zevtera; note that the bulk of our sales for each is in the US and Europe.

Our model includes unchanged forecasts for Zevtera in Europe, in addition to risk-adjusted contributions for the US opportunity and the earlier-stage pipeline (BAL101553 and BAL3833). For Zevtera in Europe, revenue forecasts include product sales at transfer prices received from partner Cardiome. For Zevtera in the US, Basilea is considering a commercial partnership; our valuation includes an assumed deal with a total value of CHF100m (a base case assumption, which could prove conservative) and a 20% royalty on sales. Our valuation includes an assumed 30% contribution by Basilea towards the cost of Phase III development ($90-120m total cost for two Phase III trials). With efficacy already demonstrated in previous trials for skin and lung infections, we believe the biggest risk to Zevtera in the US is around partnering, where we have limited visibility on the likelihood of securing any deal. Therefore, we apply a 75% probability of success; however, we note the data for Zevtera in Europe has been better in some indications versus others.

Financials

Following the FY17 results, we have made one major change to our model, which now includes the BARDA funding as other revenue as part of operating income. Net R&D consists of gross R&D net off this BARDA income, so the overall impact on the P&L is nil.

Basilea reported a 68% reduction in operating loss to CHF14.1m in 2017 (CHF43.9m in FY16), versus guidance of CHF1m operating loss/month and our estimate of CHF14.5m for 2017. Net R&D expenses increased in 2017 to CHF53.5m from CHF48.4m in 2016. Operating loss in 2017 reported at CHF14.1m vs a loss of CHF43.9m in 2016; the reduction of loss is mainly due to the significant uplift in total revenues as well as slightly lower operating expenses; higher R&D costs offset reductions in SG&A.

Basilea has provided financial guidance for FY18 for total revenues of CHF105-115m, with royalty and milestone contributions from Cresemba and Zevtera expected at CHF60-65m. Basilea expects operating loss in the region of approximately CHF10-20 million in 2018. We have tweaked our forecast for 2018 following the issuance of guidance at the FY17 results. We forecast total revenues of CHF113.6m in 2018 and CHF137.3m in 2019. Our 2019 top-line forecasts include significant sales milestone income for US Cresemba, and EU Cresemba sales from partners Astellas and Pfizer, respectively.

We anticipate gross R&D costs (we no longer net BARDA payments from R&D from 2018, but instead include the contribution as revenues) in the region of CHF85.0m and CHF95.0m in 2018 and 2019, respectively. We forecast operating losses of CHF18.7m in 2018 and CHF6.3m in 2019. Profitability in 2020 is predicated on receipt of significant sales milestones.

Exhibit 3: Financial summary

CHF'000s

2015

2016

2017

2018e

2019e

December

US GAAP

US GAAP

US GAAP

US GAAP

US GAAP

PROFIT & LOSS

Revenue

 

 

52,825

65,984

101,521

113,583

137,255

Cost of Sales

0

(5,347)

(9,025)

(11,994)

(12,429)

Gross Profit

52,825

60,637

92,496

101,589

124,826

Research and development (gross)

(60,075)

(48,449)

(53,493)

(85,000)

(95,000)

SG&A

(54,235)

(56,077)

(53,139)

(35,337)

(36,114)

EBITDA

 

 

(58,885)

(41,570)

(12,236)

(16,287)

(3,533)

Operating Profit (before amort. and except.)

(61,285)

(43,789)

(14,036)

(18,625)

(6,060)

Intangible Amortisation

(200)

(100)

(100)

(123)

(228)

Exceptionals

0

0

0

0

0

Other

0

0

0

0

0

Operating Profit

(61,485)

(43,889)

(14,136)

(18,748)

(6,288)

Net Interest

(35)

(7,065)

(4,890)

(5,375)

(5,375)

Profit Before Tax (norm)

 

 

(61,320)

(50,854)

(18,926)

(24,000)

(11,435)

Profit Before Tax (reported)

 

 

(61,520)

(50,954)

(19,026)

(24,123)

(11,663)

Tax

(83)

(333)

(334)

(26)

(26)

Profit After Tax (norm)

(61,403)

(51,187)

(19,260)

(24,027)

(11,461)

Profit After Tax (reported)

(61,603)

(51,287)

(19,360)

(24,150)

(11,689)

Average Number of Shares Outstanding (m)

10.1

10.1

10.8

10.8

10.8

EPS - normalised fully diluted (CHFc)

 

(607.22)

(505.74)

(178.36)

(222.50)

(106.14)

EPS - (reported) (CHFc)

 

 

(609.20)

(506.73)

(179.28)

(223.64)

(108.25)

Dividend per share (c)

0.0

0.0

0.0

0.0

0.0

Gross Margin (%)

100.0

91.9

91.1

89.4

90.9

EBITDA Margin (%)

N/A

N/A

N/A

N/A

N/A

Operating Margin (before GW and except.) (%)

N/A

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

13,870

59,264

58,189

59,335

60,899

Intangible Assets

346

232

326

526

726

Tangible Assets

10,724

8,878

7,768

8,714

10,078

Investments

2,800

50,154

50,095

50,095

50,095

Current Assets

 

 

384,865

268,494

292,976

226,891

194,438

Stocks

9,579

14,931

15,320

16,431

13,621

Debtors

1,545

2,492

4,955

5,290

6,393

Cash

364,688

239,030

260,724

193,193

162,447

Other

9,053

12,041

11,977

11,977

11,977

Current Liabilities

 

 

(68,836)

(72,914)

(79,491)

(54,144)

(66,713)

Creditors

(68,836)

(72,914)

(79,491)

(54,144)

(66,713)

Short term borrowings

0

0

0

0

0

Long Term Liabilities

 

 

(315,043)

(289,844)

(313,114)

(284,293)

(247,903)

Long term borrowings

(194,706)

(195,466)

(196,224)

(195,466)

(195,466)

Other long term liabilities

(120,337)

(94,378)

(116,890)

(88,827)

(52,437)

Net Assets

 

 

14,856

(35,000)

(41,440)

(52,211)

(59,279)

CASH FLOW

Operating Cash Flow

 

 

(67,780)

(75,003)

19,014

(58,522)

(21,026)

Net Interest

0

0

0

(5,375)

(5,375)

Tax

0

0

0

(26)

(26)

Capex

(1,009)

(394)

(711)

(3,408)

(4,118)

Acquisitions/disposals

0

0

0

0

0

Financing

(0)

0

0

0

0

Other

12,645

(51,021)

2,633

558

(200)

Dividends

0

0

0

0

0

Net Cash Flow

(56,143)

(126,418)

20,936

(66,773)

(30,746)

Opening net debt/(cash)

 

 

(226,125)

(169,982)

(43,564)

(64,500)

2,273

HP finance leases initiated

0

0

0

0

0

Other

0

0

(0)

0

(0)

Closing net debt/(cash)

 

 

(169,982)

(43,564)

(64,500)

2,273

33,019

Source: Edison Investment Research, company reports

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

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Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Basilea Pharmaceutica and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Limited (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

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Germany

London +44 (0)20 3077 5700

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United Kingdom

New York +1 646 653 7026

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US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Basilea Pharmaceutica and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Limited (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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