Basilea Pharmaceutica - Momentum continues

Basilea reported good momentum in H121 in all parts of the business. While total revenues declined to CHF54.2m (reflecting the phasing out of deferred revenues booked), actual in-market sales of Cresemba (severe mould infections) and Cresemba related income increased. Management has thus upgraded FY21 guidance for revenue to CHF134–144m (vs CHF128–138m) and operating loss to CHF7–17m (vs prior expected loss of CHF13–23m). We expect an event-driven 18 months ahead, with multiple R&D-related inflection points for its oncology assets derazantinib and lisavanbulin (glioblastoma). Basilea plans to progress a potential first-in-class kinase inhibitor into the clinic in early 2022, taking the oncology R&D pipeline tally to three assets. We value Basilea at CHF1.26bn.