Basilea Pharmaceutica — Encouraging start to the year for Cresemba

Basilea Pharmaceutica (SIX: BSLN)

Last close As at 05/02/2025

CHF39.90

−0.25 (−0.62%)

Market capitalisation

CHF529m

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Research: Healthcare

Basilea Pharmaceutica — Encouraging start to the year for Cresemba

Basilea Pharmaceutica has continued its strong momentum into 2025, announcing the receipt of a CHF1.2m milestone payment for Cresemba for the strategically important Japanese market. This marks the first commercial milestone payment from Japanese licensing partner, Asahi Kasei Pharma, and comes within two years of market launch (in March 2023), which we view as an indication of the favourable market uptake for the company’s lead anti-infective drug. We note that Japan and China are key markets for Cresemba (making up c 25% of the drug’s global potential) and have experienced strong demand for this category-leading treatment. We expect these markets to support Basilea in life cycle management for Cresemba as it approaches maturity in the primary US and European markets (loss of market exclusivity in Q427). Our estimates are under review ahead of the forthcoming FY24 results, due to be published on 18 February 2025.

Jyoti Prakash

Written by

Jyoti Prakash, CFA

Analyst, Healthcare

Healthcare

Milestone update

6 February 2025

Price CHF40.65
Market cap CHF493m

US$1.1/CHF

Net debt at 30 June 2024

CHF26.2m

Shares in issue (excluding 1.12m treasury shares)

12.1m
Code BSLN
Primary exchange SWX
Secondary exchange N/A
Price Performance

Business description

Basilea Pharmaceutica is focused on treating infectious diseases. Its marketed products are Cresemba (an antifungal) and Zevtera (an anti-MRSA broad-spectrum antibiotic). In late 2023, it expanded its clinical pipeline to include two antifungals, Phase III-ready, novel broad-spectrum antifungal treatment fosmanogepix (first Phase III trial commenced in September 2024) and Phase II asset BAL2062, and one antibiotic, tonabacase. In January 2024, Basilea acquired the preclinical LptA inhibitor antibiotics programme from Spexis.

Analysts

Jyoti Prakash, CFA
+44 (0)20 3077 5700
Arron Aatkar, PhD
+44 (0)20 3077 5700

Basilea Pharmaceutica is a research client of Edison Investment Research Limited

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (CHFm) PBT (CHFm) EPS (CHF) DPS (CHF) P/E (x) Yield (%)
12/22 147.8 12.3 1.04 0.00 39.0 N/A
12/23 157.6 10.8 0.90 0.00 45.3 N/A

Basilea’s lead candidate, Cresemba, is a broad-spectrum azole antifungal available in both oral and intravenous formulations, approved for the treatment of serious invasive infections: aspergillosis, mucormycosis and cryptococcosis (in Japan). The drug was launched in Japan by partner Asahi Kasei Pharma in March 2023 (with an associated regulatory milestone payment of CHF5m) and we believe that swift receipt of the first commercial milestone payment indicates strong market uptake for the drug. This follows strong sales performances in other geographies, resulting in more than CHF37m in milestones for Cresemba in 2024, including the latest milestone payment from Canadian partner AVIR Pharma.

Cresemba is a market-leading antifungal, with a 19% global market share in best-in-class antifungals (in value terms) and marketed in 73 countries. The drug continues to deliver a strong sales performance, with in-market sales of US$533m in the 12 months to September 2024 (20% y-o-y growth). While the US currently accounts for c 50% of sales, the proportional contribution has been declining as other geographies gain traction. We estimate peak sales of c US$750m for Cresemba will be achieved in 2027.

We expect 2025 to be a highly active period for Basilea. In our view, a key upcoming catalyst may be the US market launch of the company’s second commercial asset, Zevtera. This antibiotic treatment received FDA approval in April 2024 and an exclusive licensing agreement with Innoviva Specialty Therapeutics was finalised for US commercialisation in December 2024. Innoviva already has a notable presence in the antibacterial space with two approved assets, Xerava and Xacduro, and we expect Zevtera to complement the portfolio, boosting its commercial potential. We also look forward to the initiation of the second Phase III trial for fosmanogepix in invasive mould infections, which was previously anticipated by year-end 2024 but is now expected to commence in the next few months.

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