Innovation meets execution in anti-infectives

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...