Basilea - Another significant milestone

Basilea announced the receipt of a $30 million milestone payment this morning, as its leading antifungal, Cresemba, exceeded the predetermined sales threshold in Europe. The receipt of this significant sales milestone from European licensee Pfizer is a testament to the continued strong growth of Cresemba, despite its maturity, and thanks to its profile, which combines a broad spectrum with a favourable side-effect profile.

Efforts at Basilea to prepare for the loss of exclusivity for Cresemba in key markets, including the US and Europe, are well underway, in our view. Key to delivering longevity to the anti-fungal franchise, as well as taking the franchise to new heights, is the novel anti-fungal fosmanogepix, which is progressing through Phase 3 trials targeting invasive candidiasis (including candidaemia) and invasive mould infections. We believe that the fosmanogepix programme has been substantially de-risked following supportive Phase 3 evaluation as well as results already delivered by the ongoing compassionate use/expanded access programme in difficult-to-treat fungal infections. As a result, we forecast peak sales of fosmanogepix at approximately $1.2 billion.

It is also important to remember additional sources of growth. These include the US availability of Zevtera (ceftobiprole) through Innoviva Specialty Therapeutics (IST), now firmly in its launch phase in the important indication of Staphylococcus aureus bacteraemia (potential $250m peak sales), as well as severe skin infections and community-acquired bacterial pneumonia. In-licensing activities continue, and we have previously highlighted the commercial potential of the ceftibuten/ledaborbactam etzadroxil combination programme in-licensed from Venatorx Pharmaceuticals as a novel treatment for complicated urinary tract infections (cUTI). We forecast US peak sales of $440 million.

The importance of Basilea's endeavours is also reflected in the receipt of significant non-dilutive funding from BARDA, providing not just cash but flexibility as Basilea seeks to progress its anti-infectives pipeline. There is much to look forward to.

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Basilea Pharmaceutica is a client of Calvine Partners, and as such, this publication is not independent and should be considered a marketing communication under FCA Rules. None of the information in this publication should be considered as any form of advice.

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