Basilea Pharmaceutica - Partner in place for US commercialisation of Zevtera

Following FDA approval in April 2024, Basilea has announced a much-anticipated partnership agreement with Innoviva Specialty Therapeutics for the commercialisation of Zevtera in the US. Deal terms include an upfront payment of US$4m, as well as tiered royalties on net sales in the high-teens to mid-20s percentage range. In addition, the company is eligible to receive up to US$223m in sales-related milestone payments. We view this as an important milestone and highly favourable transaction for Basilea, while offering an effective new medicine to combat Staphylococcus aureus bloodstream infections in the US. For now, we put our valuation on hold as we review our model and estimates.