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Andrew Keith

Basilea - A Perfect Match

In our research report published this morning, we updated our forecasts and valuation to incorporate the recent funding award from BARDA.


Basilea has secured up to $268m through a multi-year Other Transaction Agreement (OTA), significantly enhancing its ambitions to become a leading anti-infectives company. The financial flexibility in the agreement should permit the company to expedite pipeline progress. Basilea has suggested that the award will cover approximately 60% of the costs of developing its current antifungal pipeline.


The attraction of BARDA funding reflects the importance of fosmanogepix, the need for novel antifungals targeting critical fungal infections, and the emergence of resistance to currently available antifungal classes. The WHO's introduction of a list of critical fungal infections should stimulate interest, and Basilea now stands to be a major beneficiary.


Our forecasts include new guidance for 2024F and reflect a period of substantial positive cash flow and sustainable profitability. The addition of the BARDA funding now offsets a significant portion of expected R&D spending.


We have raised our forecasts and increased our DCF-derived valuation to CHF 120 per share.


To read our recent research report, please use the link here.


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IMPORTANT:


Calvine Partners LLP is authorised and regulated by the Financial Conduct Authority.

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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