Edison Issues Initiation on Basilea Pharmaceutica

LONDON, March 24, 2016 /PRNewswire/ --

Basilea is one of the few standalone European companies focused on developing novel antimicrobial drugs. It has two approved hospital-based products: Cresemba for severe mold infections and Zevtera for bacterial infections. Together these underpin the current valuation with upside potential from a US partnering deal for Zevtera and the early-stage oncology pipeline. A US Zevtera deal and potential sales progression for the antimicrobial portfolio are key near-term share price drivers. We value Basilea at CHF1,114.0m or CHF103.2/share.

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Our Basilea valuation is CHF1,114.0m or CHF103.2/share based on an NPV analysis, which includes the main portfolio of products and net cash. Cresemba, based on $600m peak sales, is worth nearly 60% of our rNPV and underpins >100% of the current market cap. We also include Zevtera in Europe, in addition to risk-adjusted contributions for the US opportunity and the earlier-stage pipeline. 

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