This morning’s announcement that Basilea has acquired a clinical-stage novel antifungal highlights the company’s ability to find and acquire novel agents to rejuvenate its pipeline.
Given Cresemba's success, some investors have concerns about its increasing maturity, with exclusivity expected to expire in the US and European markets from Q4 2027. While there are other important markets, such as China and Japan, where Cresemba is still in its launch phase, we believe the loss of key markets has been an overhang on the investment case. Acquisitions, such as today's, should help allay these concerns.
The acquisition of GR-2397 (now BAL-2062) adds a novel first-in-class agent with fungicidal activity against clinically important moulds, including Aspergillus spp. BAL-2062 has completed Phase 1 studies demonstrating a benign safety and tolerability profile. Phase 2 development is expected in H1 2025. BAL-2062 has QIDP, Fast Track, and orphan designation.
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We calculate a discounted cash flow fair value of CHF 91 per share for Basilea.
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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.