Basilea Pharmaceutica's (SIX:BSLN) prognosis looks good. Multiple licensing/distribution agreements announced for launched assets Cresemba and Zevtera should drive top-line growth faster than we had expected. Major deals include; Cresemba in Europe (ex Nordics), Russia, Turkey and Israel with Pfizer (NYSE:PFE) (CHF70m upfront plus up to $427m in regulatory and sales milestones and mid-teen royalties), Zevtera in China with CR Gosun, and in Europe with Cardiome. These licensing and distribution deals validate the commercial potential for both assets and enable the financial fire power to bolster Basilea’s existing, innovative R&D pipeline (with a focus on cancer and anti-infective drug resistance). Our upgraded valuation is CHF1,188m or CHF110/share (excluding treasury shares) vs CHF1,048 previously.
2017 a successful year for partnerships
Basilea has announced multiple licensing/distribution agreements for key assets Cresemba (isavuconazole) for invasive mould infections and Zevtera/Mabelio (ceftobiprole) for bacterial infections. The significant licensing deal with Pfizer for Cresemba (in Europe ex Nordics, Russia, Turkey and Israel) makes strategic and commercial sense given its expertise in this niche therapeutic indication. As a result we have upgraded our global Cresemba peak sales forecasts to $0.8bn from $0.6bn; the bulk of the upgrade relates to the European opportunity.
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