Last close As at 05/08/2026
CHF50.70
▲ 0.20 (0.40%)
Market capitalisation
CHF681m
Research: Healthcare
Basilea has announced an exclusive evaluation licence and option agreement with South Korea-based iNtRON Biotechnology (KOSDAQ: 048530) for tonabacase, a potential first-class antibacterial of endolysin class. The product candidate could potentially fit well into Basilea’s portfolio of anti-fungal and anti-bacterial products, Cresemba and Zevtera. This announcement follows the recent in-licensing of GR-2397 (an antifungal compound, renamed BAL2062) and aligns with management’s strategic focus to seek anti-fungal and anti-infective synergistic additions to its portfolio. As part of the agreement, Basilea will evaluate tonabacase in a range of preclinical studies which, if favourable, could lead to a licensing agreement for further clinical development, at Basilea’s exclusive discretion and at pre-agreed financial terms. Basilea is making an undisclosed upfront payment to iNtRON and will make an additional payment if it decides to exercise its exclusive option to execute the licence agreement. While the terms of the deal are undisclosed, management maintains that the transaction has no impact on its FY23 financial guidance.
Written by
Basilea Pharmaceutica |
Growth pivot with potential antibacterial addition |
Licensing update |
Pharma and biotech |
1 November 2023 |
Share price performance
Business description
Analysts
Basilea Pharmaceutica is a research client of Edison Investment Research Limited |
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Basilea has announced an exclusive evaluation licence and option agreement with South Korea-based iNtRON Biotechnology (KOSDAQ: 048530) for tonabacase, a potential first-class antibacterial of endolysin class. The product candidate could potentially fit well into Basilea’s portfolio of anti-fungal and anti-bacterial products, Cresemba and Zevtera. This announcement follows the recent in-licensing of GR-2397 (an antifungal compound, renamed BAL2062) and aligns with management’s strategic focus to seek anti-fungal and anti-infective synergistic additions to its portfolio. As part of the agreement, Basilea will evaluate tonabacase in a range of preclinical studies which, if favourable, could lead to a licensing agreement for further clinical development, at Basilea’s exclusive discretion and at pre-agreed financial terms. Basilea is making an undisclosed upfront payment to iNtRON and will make an additional payment if it decides to exercise its exclusive option to execute the licence agreement. While the terms of the deal are undisclosed, management maintains that the transaction has no impact on its FY23 financial guidance.
Year end |
Revenue (CHFm) |
PBT* |
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 |
34.4 |
N/A |
12/23e |
158.2 |
43.5 |
332.2 |
0.0 |
10.8 |
N/A |
12/24e |
180.7 |
63.2 |
482.3 |
0.0 |
7.4 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Basilea plans to investigate a number of hypotheses for tonabacase across a range of preclinical studies during 2024. These studies will form the basis for determining the appropriate clinical development programme for the asset and could result in the candidate moving directly into a potential Phase II study in 2025 on favourable results from the preclinical studies. Tonabacase has already demonstrated positive activity in vitro and in preclinical animal models of infection related to methicillin-resistant and methicillin-susceptible Staphylococcus aureus, along with in vitro activity against coagulase-negative staphylococci. The drug was also shown to be well-tolerated in Phase I studies, at single and multiple doses.
The rising issue of antimicrobial resistance has added complexity to the treatment of bacterial infections and represents a challenge to global public health. Drug-resistant bacterial infections can lead to at least 50,000 deaths a year in Europe and the US, along with a large number of affected patients globally, resulting in a GDP loss of c US$3tn annually. Among the World Health Organization’s list of global priority pathogens, gram-positive (G+) bacteria form a significant portion of drug-resistant bacteria, hence there is a medical need to combat these infections. Endolysins represent a novel treatment in bacterial infections (especially for G+ bacteria) and we understand they may potentially demonstrate both a better treatment profile (compared to traditional antibiotic treatments) and better compatibility (when used with other antibiotics), along with a low risk of developing resistance. In our view, the potential licensing deal presents an important portfolio expansion opportunity for Basilea.
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Research: Investment Companies
On 1 November 2023, RTW Biotech Opportunities (RTWBIO), a full life cycle biotech investor, announced what it considers to be a transformational deal. It plans to acquire the assets of UK-listed Arix Bioscience in an all-share transaction, which on a pro-forma basis would increase RTWBIO’s NAV by c $550m (c 63%). The deal brings the prospects of increased liquidity in RTWBIO’s shares and a more efficient cost base, and potential for a higher RTWBIO valuation. Arix’s shareholders would receive new RTWBIO shares at an implied c 46% premium to the level before Arix announced a strategic review. Meanwhile, RTWBIO’s management team anticipates that the deal would be single-digit accretive to the company’s NAV per share at completion.