Basilea Pharmaceutica AG (SIX:BSLN) announced a hat trick of positive news flow in June. This includes two separate licensing deals covering Cresemba (for invasive mould infections) and Zevtera, as well as triggering the allocation of $54.8m reimbursement funding from the Biomedical Advanced Research and Development Authority (BARDA) relating to the advancement of Zevtera’s US phase III clinical programme for bacterial infections (trials to initiate H217). Most notable is the major licensing deal with Pfizer (NYSE:PFE) for Cresemba in Europe, Russia, Turkey and Israel; Pfizer is the partner of choice given its long-standing expertise in this market. Additionally, Avir Pharma has licensed both Cresemba and Zevtera for the Canadian market. Our forecasts and valuation are under review; we will update both post further disclosure on the PFE deal at the interim results on 10 August.
Double dealings
Basilea has entered into a licence agreement with Pfizer for Cresemba (isavuconazole) commercialisation in Europe (ex Nordics), Russia, Turkey and Israel. The deal with Pfizer could be a game changer for Cresemba; Pfizer has the expertise to manufacture and commercialise Cresemba rapidly throughout its in-licensed territories using its established existing marketing infrastructure during a period where its own anti-fungal Vfend has lost patent protection in key markets. Under the terms of the deal Basilea will receive an upfront payment of CHF70m and will be eligible to receive up to $427m in additional payments upon achievement of pre-specified regulatory and sales milestones. Basilea will also receive royalties in the mid-teen range on Pfizer’s sales in the territories mentioned.
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