Last close As at 05/08/2026
CHF50.70
▲ 0.20 (0.40%)
Market capitalisation
CHF681m
Research: Healthcare
Basilea has bolstered its drug pipeline with the in-licensing of fosmanogepix, a broad-spectrum antifungal candidate, from Amplyx Pharmaceuticals (a Pfizer affiliate). Fosmanogepix is a clinical-stage, potentially first-in-class broad-spectrum antifungal treatment and Basilea plans to initiate Phase III trials in mid-2024. Deal consideration includes $37m in upfront payments and milestones of up to $496m ($110m to Pfizer, and $396m from previous agreements), of which the majority relates to regulatory and commercial milestone events, and tiered single-digit royalties. We view this as a favourable transaction for Basilea and note that it is in line with the company’s previously disclosed plans to expand its late-stage product pipeline. In our view, fosmanogepix represents a promising near-term commercial opportunity as the legacy portfolio matures, provided that the data continue to be supportive. As part of this new update, management has also provided revised full-year 2023 financial guidance. We will update our model and valuation to reflect this deal. Our 2023 and 2024 estimates are under review.
Written by
Basilea Pharmaceutica |
Incremental acquisition to arsenal; new guidance |
Licensing update |
Pharma and biotech |
14 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 bolstered its drug pipeline with the in-licensing of fosmanogepix, a broad-spectrum antifungal candidate, from Amplyx Pharmaceuticals (a Pfizer affiliate). Fosmanogepix is a clinical-stage, potentially first-in-class broad-spectrum antifungal treatment and Basilea plans to initiate Phase III trials in mid-2024. Deal consideration includes $37m in upfront payments and milestones of up to $496m ($110m to Pfizer, and $396m from previous agreements), of which the majority relates to regulatory and commercial milestone events, and tiered single-digit royalties. We view this as a favourable transaction for Basilea and note that it is in line with the company’s previously disclosed plans to expand its late-stage product pipeline. In our view, fosmanogepix represents a promising near-term commercial opportunity as the legacy portfolio matures, provided that the data continue to be supportive. As part of this new update, management has also provided revised full-year 2023 financial guidance. We will update our model and valuation to reflect this deal. Our 2023 and 2024 estimates are under review.
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 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Basilea has announced the acquisition of fosmanogepix, a clinical-stage antifungal therapy with broad-spectrum activity against yeasts and moulds, including multidrug-resistant fungi. Fosmanogepix is a potential first-in-class candidate with a novel mechanism of action, formulated for both intravenous and oral administrations. To date, Amplyx has completed safety and efficacy studies in a Phase I/II programme, including three open-label Phase II studies. Most recently, the results from a Phase II clinical trial (n=20) for fosmanogepix demonstrated a success rate of 80%, and a 30-day survival rate of 85%, for the treatment of Candidemia, an invasive yeast infection. Fosmanogepix holds fast track and orphan drug designations from the FDA and has also been designated as a qualified infectious disease product, potentially providing it with 12 years of market exclusivity in the US (orphan drug seven years + five years related to QIDP), if approved. In our opinion, this acquisition marks a positive step forward for Basilea, spearheading the company’s efforts towards an expanded product pipeline as its lead asset Cresemba matures.
As part of the announcement, management has also provided revised financial guidance for FY23. Total revenue is now expected to be CHF154–157m (CHF157–160m previously) due to lower than expected Biomedical Advanced Research and Development Authority (BARDA) reimbursements. More importantly, operating profit expectations have been revised to CHF11–15m (CHF50–55m previously), which we believe largely stems from the company recognising the $37m upfront consideration as R&D expenses in its accounts. We will present our revised estimates and valuation, incorporating the latest acquisition and revised guidance for the year, in due course.
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Research: Real Estate
Regional REIT’s (RGL’s) Q323 trading update includes details of further leasing events, at rents ahead of market levels, and continuing asset sales, at or above book value. However, with the balance of occupiers remaining cautious, as economic prospects are assessed, rent roll and occupancy weakened. Supported by the strong ‘return to the office’, RGL continues to expect an acceleration in leasing, to provide the underpinning for its efforts to reduce gearing while maintaining income and dividends.