Basilea - More funding from CARB-X

Basilea announced this morning that it has been awarded additional non-dilutive funding of $6m from CARB-X for BAL2420 to fund the ongoing first-in-man Phase 1 study. BAL2420 has previously been supported by CARB-X funding, including $7.5m in 2024, as the programme moved towards the clinic. Overall we believe that the support from CARB-X represents a strong endorsement of this particular approach given CARB-X's focus on accelerating programmes targeting the WHO and CDC's Priority Pathogens list.

BAL2420 targets LptA with the objective of disrupting the outer membrane of Gram-negative bacteria by targeting the lipopolysaccharide (LPS) bridge. Given the outer membrane’s importance in preserving the integrity of Gram-negative bacteria, targeting LPS production and its transport machinery, has proven a productive approach in antibiotic drug development.

Nevertheless, apart from the polymixins and colistin, efforts to develop direct inhibitors of LPS have been largely disappointing. Given the heightened risk of toxicity associated with colistin and Polymyxin B, they are generally used as a last-resort. The preclinical profile of BAL2420 appears to be very appealing as a potent inhibitor of LptA, exhibiting rapid bactericidal activity. Notably, it shows activity against Enterobacteriaceae strains (WHO Priority 1), including those resistant to beta-lactams and colistin.

We believe that BAL-2420 represents an important potential future addition to Basilea's anti-bacterial portfolio which is currently dominated by the 5th-generation cephalosporin, Zevtera, targeting Gram-positive infections and in particular those involving MRSA. The late stage antibiotic pipeline features the Phase 3-ready combination antibiotic ceftibuten-ledaborbactam which is targeting complicated urinary tract infections (cUTI) and in particular those caused by the problematic Gram-negative pathogen Enterobacterales. Our forecasts suggest that the peak sales potential for Zevtera and ceftibuten-ledaborbactam (if approved) could be in the region of $380m and $450m respectively.

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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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