Currency in CHF
Last close As at 17/03/2023
CHF50.00
▲ −1.00 (−1.96%)
Market capitalisation
CHF668m
Research: Healthcare
Basilea has announced that it has received a sales-related milestone payment of CHF20m from its US licensing partner Astellas Pharma. This was triggered by sales figures achieved in the US in 2022 for Basilea’s flagship antifungal therapy, Cresemba. It has now received a total of CHF50m in sales-related milestone payments from Astellas Pharma. As part of the agreement, Basilea is set to receive additional potential sales-based milestone payments of up to CHF240m, as well as double-digit royalties on US net sales. We maintain our valuation at CHF921.7m (CHF77.8 per share); however, we will update our figures once Basilea’s year-end results are announced in February.
Basilea Pharmaceutica |
Cresemba milestone payment triggered |
Milestone update |
Pharma and biotech |
9 January 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 sales-related milestone payment of CHF20m from its US licensing partner Astellas Pharma. This was triggered by sales figures achieved in the US in 2022 for Basilea’s flagship antifungal therapy, Cresemba. It has now received a total of CHF50m in sales-related milestone payments from Astellas Pharma. As part of the agreement, Basilea is set to receive additional potential sales-based milestone payments of up to CHF240m, as well as double-digit royalties on US net sales. We maintain our valuation at CHF921.7m (CHF77.8 per share); however, we will update our figures once Basilea’s year-end results are announced in February.
Year end |
Revenue |
PBT* (CHFm) |
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 |
120.7 |
(14.6) |
(123.2) |
0.0 |
N/A |
N/A |
12/23e |
131.3 |
9.0 |
66.0 |
0.0 |
0.73 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The latest announcement marks what has been a busy period of positive newsflow from Basilea. Having honoured its debt repayment obligations with the full repayment (CHF113.8m) of outstanding convertible bonds in December 2022, Basilea’s licensing partner, Asahi Kasei, received marketing approval for Cresemba in Japan, a key market for Basilea. We continue to expect revenue growth to be driven by global Cresemba sales (US$363m between October 2021 and September 2022) and see the expansion of the drug into new territories as critical to extract further commercial value.
Additionally, we expect Basilea to file a new drug application to the FDA in early 2023 for the approval of the company’s lead antibiotic, Zevtera, in Staphylococcus aureus bacteraemia as the leading indication. The submission will be supported by the positive results from the ERADICATE and TARGET Phase III studies, representing the next key milestone for Basilea.
In our view, 2023 is poised to be a period of increased deal activity in the form M&A, licensing and partnerships in light of the macroeconomic environment and general make-up of the capabilities in the pharma market, as outlined in our analysis of the upcoming year. We believe Basilea’s portfolio of both commercial and clinical-stage assets may provide further differentiation within the market.
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Research: Healthcare
After completing the 1:20 share consolidation, OpGen has announced a $7.5m equity issue to be closed by 11 January 2023. As part of the offering, OpGen will issue 2.6m common shares (or pre-funded warrants) at $2.90 per share, along with a similar number of Series A-1 and A-2 warrants. The warrants will be exercisable immediately at a strike price of $2.65 per share with respective expiry dates of five years and 18 months. OpGen plans to use the funds raised to accelerate commercialization efforts for its pipeline, capex and working capital needs, and to repay the outstanding European Investment Bank (EIB) loan. We will incorporate the fundraise in our valuation when the issue is completed.
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