Basilea Pharmaceutica - Cresemba sales the focus for future profitability

Basilea continues to build on its key franchises, Cresemba and Zevtera, with FY19 contributions from both increasing 39% to CHF114m, driven mainly by Cresemba. Longer-term value creation is dependent on crystallising mid/late-stage oncology assets, with new trials initiated or expected for both derazantinib (multiple data points expected in 2020) and lisavanbulin (trial initiation by mid-year expected). We forecast break-even at the operating profit level in 2021 and value Basilea at CHF1.10bn.