Last close As at 05/08/2026
CHF50.70
▲ 0.20 (0.40%)
Market capitalisation
CHF681m
Research: Healthcare
Following FDA approval in April 2024, Basilea has announced a much-anticipated partnership agreement with Innoviva Specialty Therapeutics for the commercialisation of Zevtera in the US. Deal terms include an upfront payment of US$4m, as well as tiered royalties on net sales in the high-teens to mid-20s percentage range. In addition, the company is eligible to receive up to US$223m in sales-related milestone payments. We view this as an important milestone and highly favourable transaction for Basilea, while offering an effective new medicine to combat Staphylococcus aureus bloodstream infections in the US. For now, we put our valuation on hold as we review our model and estimates.
Basilea Pharmaceutica |
Partner in place for US commercialisation of Zevtera |
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Pipeline update |
Pharma and biotech |
17 December 2024 |
Share price performance
Business description
Analysts
Basilea Pharmaceutica is a research client of Edison Investment Research Limited |
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Following FDA approval in April 2024, Basilea has announced a much-anticipated partnership agreement with Innoviva Specialty Therapeutics for the commercialisation of Zevtera in the US. Deal terms include an upfront payment of US$4m, as well as tiered royalties on net sales in the high-teens to mid-20s percentage range. In addition, the company is eligible to receive up to US$223m in sales-related milestone payments. We view this as an important milestone and highly favourable transaction for Basilea, while offering an effective new medicine to combat Staphylococcus aureus bloodstream infections in the US. For now, we put our valuation on hold as we review our model and estimates.
Year end |
Revenue (CHFm) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
147.8 |
12.3 |
104.1 |
0.0 |
43.4 |
N/A |
12/23 |
157.6 |
10.8 |
89.7 |
0.0 |
50.3 |
N/A |
12/24e |
203.0 |
38.9 |
499.4 |
0.0 |
9.0 |
N/A |
12/25e |
219.1 |
50.7 |
419.3 |
0.0 |
10.8 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Basilea has announced Innoviva Specialty Therapeutics as its US commercial partner for Zevtera (ceftobiprole). US-based Innoviva Specialty Therapeutics is a subsidiary of Innoviva (NASDAQ: INVA) and is recognised for its established hospital salesforce with core capabilities in the commercialisation of anti-infective products. Basilea will receive upfront payment of US$4m, as well as tiered royalties in the high-teens to mid-20s percentage range, and up to US$223m in sales-related milestones. In addition, Innoviva Specialty Therapeutics will purchase its demand of Zevtera drug product from the company.
While already marketed in selected countries in Europe, Latin America, the Middle East, North Africa and Canada, Zevtera was approved by the US FDA in April 2024, which marked a key milestone for Basilea’s second most-advanced asset (behind Cresemba). The FDA approved Zevtera for three indications: Staphylococcus aureus bloodstream (SAB) infections, including right-sided infective endocarditis, in adult patients; acute bacterial skin and skin structure infections in adult patients; and community-acquired bacterial pneumonia in adult and paediatric patients. We highlight that the drug is active against methicillin-resistant strains (MRSA), which account for c 50% of all SAB infections, and have represented an ongoing medical challenge in the infectious disease treatment space. As such, the global MRSA treatment market was estimated to be worth US$3.8bn in 2021 and is predicted to reach US$5.5bn by 2030 (CAGR of 4.3%). Since the US represents the largest segment of this market (c 85%), we believe the commercial opportunity, partnered with Innoviva Specialty Therapeutics, could be significant.
While we review our model and estimates, we place our valuation for Basilea on hold. For a more detailed overview of Basilea’s active pipeline activities, we direct readers to our September 2024 and August 2024 update notes.
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Research: TMT
Filtronic’s H125 trading update confirmed that the company expects to report FY25 results ahead of current market expectations. Robust customer demand has resulted in some orders being pulled forward from FY26 into H225. We upgrade our FY25 revenue and profit forecasts, with diluted normalised EPS up 26%, and maintain our FY26 forecasts. This assumes that further orders are received in H225 to replenish the order backlog. Filtronic’s strong position in the space market and growing presence in the aerospace and defence market provide it with multiple sources of growth.