Basilea Pharma Company Research (0QNA)

We revisit our investment case for Basilea Pharmaceutica as it is navigating a period of heightened business activity, with the US launch of Zevtera and the anticipated second Phase III trial for lead drug designate fosmanogepix. We believe that Basilea’s anti-infectives-focused business model remains resilient amid increased macroeconomic uncertainty, with the building blocks in place for sustained growth. Following a rewarding 2024 (revenues up c 32% y-o-y to CHF208.5m), we continue to expect Cresemba to spearhead growth but see further upside from Zevtera sales in the US. A strong cash balance (CHF124.6m) and R&D backing from BARDA (another $39m committed in July) de-risks development plans in the medium term. Trading at an FY25e P/E ratio of 11x (vs the c 20x industry average), the stock is priced attractively, in our view. We raise our valuation to CHF1,291.4m or CHF105.2 per share (from CHF1,155.5m or CHF95.3/share).