We published a research note today exploring the potential for Basilea's lead oncology candidate derazantinib.
Basilea's anti-infectives franchise is relatively well understood, however, we believe that the emerging oncology franchise has been overlooked. Derazantinib is an FGFR inhibitor with broad applicability in treating a variety of cancers. The FGFR inhibitor space is competitive, and others are ahead of Basilea, but the market potential for effective FGFR-targeting therapies is large. It involves many difficult to treat cancers, and competitors have already validated the approach.
Derazantinib still has a significant opportunity in monotherapy but we believe its potential to boost the activity of immunotherapy has been missed. Derazantinib's activity against the CSF-1/CSF1R pathway appears to differentiate it from competitors. The CSF-1/CSF1R pathway is responsible for effectively blunting the effectiveness of the checkpoint inhibitors (CKIs). Consequently, if derazantinib is successful in combination with CKIs, it could be a leader rather than a fast-follower. Basilea has two trials ongoing to test this theory in combination with Roche's Tecentriq.
We have calculated a discounted cash flow fair value of CHF 120 for Basilea. See the full research note here.
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 contained in this publication should be considered as any form of advice.