Currency in CHF
Last close As at 08/06/2023
CHF44.65
▲ −0.55 (−1.22%)
Market capitalisation
CHF585m
Research: Healthcare
Basilea has announced that it has received a development-related milestone payment of CHF5m from its Japanese licensing partner, Asahi Kasei Pharma. This was triggered through the launch of Basilea’s flagship antifungal therapy, Cresemba, in Japan. Having been approved in 73 countries and marketed in 65, Cresemba is one of the major antifungal products on the market, capturing c 12% of global sales of best-in-class antifungals by end-2022. Japan is a key strategic territory for Basilea, representing c 4% of Cresemba’s future market potential, and the successful launch will help continue sales momentum and drive profitable growth in FY23, in our view.
Basilea Pharmaceutica |
Cresemba expansion continues with Japan launch |
Guidance update |
Pharma and biotech |
23 March 2023 |
Share price performance Business description
Analysts
Basilea Pharmaceutica is a research client of Edison Investment Research Limited |
Basilea has announced that it has received a development-related milestone payment of CHF5m from its Japanese licensing partner, Asahi Kasei Pharma. This was triggered through the launch of Basilea’s flagship antifungal therapy, Cresemba, in Japan. Having been approved in 73 countries and marketed in 65, Cresemba is one of the major antifungal products on the market, capturing c 12% of global sales of best-in-class antifungals by end-2022. Japan is a key strategic territory for Basilea, representing c 4% of Cresemba’s future market potential, and the successful launch will help continue sales momentum and drive profitable growth in FY23, in our view.
Year end |
Revenue |
PBT* (CHFm) |
EPS* |
DPS |
P/E |
Yield |
12/21 |
148.1 |
(6.6) |
(56.9) |
0.0 |
N/A |
N/A |
12/22 |
147.8 |
12.3 |
104.1 |
0.0 |
47.6 |
N/A |
12/23e |
156.7 |
40.9 |
312.6 |
0.0 |
15.8 |
N/A |
12/24e |
180.7 |
62.0 |
473.4 |
0.0 |
10.4 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
This latest development for Cresemba further underpins its strategic importance to drive continued operating profitability. In FY22, the uptake of Basilea’s antifungal product Cresemba continued to drive the company’s top line as launches in new territories increased licensing revenue payments from partners. In particular, royalty income from global Cresemba sales grew 22% y-o-y in FY22 to CHF65m, with the antifungal drug reaching more than $363m in global sales in the 12 months to September 2022. The US remains a key market, contributing over 55% of Cresemba’s in-market sales. Notably, a $20m sales-related milestone payment for US partner Astellas towards year-end 2022 bolstered Basilea’s top line.
We believe that global uptake of Cresemba will continue in FY23, with the Chinese market representing an additional key driver for revenue growth. Management estimates that China may contribute c 20% of the global market opportunity for Cresemba. Following the drug’s oral and intravenous (IV) formulation approval in the region in FY22 and recent inclusion of the IV formulation in the National Reimbursement Drug List, we see Basilea as being in a strong position to begin capturing market share within China in 2023.
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Research: Healthcare
In an unexpected move, Context Therapeutics has announced that it will be discontinuing further development work on its ONA-XR program and prioritize the development of its novel preclinical bispecific CLDN6xCD3 antibody, CTIM-76. While we view the news as disappointing given efficacy data in the OATH study were encouraging, we understand the need to prioritize safety for patients. With a market cap of $11m, Context is trading well below cash levels (end-FY22 cash balance of $35.5m). We have withdrawn our estimates and will revisit our model assumptions and overall valuation in due course. We note that the discontinuation of the ONA-XR programs allows Context to extend its cash runway to late 2024 (versus early 2024 previously), well past the planned IND filing of CTIM-76 in Q124.
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