The announcement this morning that Basilea has received $25m from commercial partner Pfizer as sales have exceeded a predefined threshold is a testament to the ongoing success of Cresemba and its importance to Basilea. Pfizer has proven a highly successful commercial partner for Cresemba in key markets. We believe that much of that success is due to a combination of Pfizer's strong anti-fungal franchise and the attractive profile of Cresemba, which includes its broad spectrum and benign safety profile. Pfizer has proven itself adept at delivering success in the anti-fungal field, generating $900m in peak sales with voriconazole. It should be able to position Cresemba as an alternative to voriconazole as per the guidelines.
Pfizer has also proven to be a source of novel anti-fungals for Basilea, with the company adding fosmanogepix in November 2023, thereby providing a succession plan for the anti-fungal franchise post-Cresemba's expected loss of market exclusivity in the US and Europe from Q4 2024. We believe the fosmanogepix acquisition is transformative for Basilea, potentially taking the anti-fungal franchise to new heights. The Phase 3 programme is due to start shortly, and we believe It has been largely de-risked. Positive Phase 2 data showed fosmanogepix activity in three studies for the treatment of candidaemia, Candida auris and invasive mould infections. Our sales forecasts suggest a significant market opportunity for fosmanogepix, with peak sales approaching $1.2bn. Pfizer has also retained the rights to first negotiation for fosmanogepix after Phase 3 development. Given the importance of the anti-fungal franchise to Pfizer, we believe its ongoing interest is a strong endorsement of fosmanogepix and Basilea's expertise in developing novel anti-fungals.
We have a discounted cash flow fair value of CHF 110 per share for Basilea.
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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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