Basilea Pharmaceutica — Another year, another market beat

Basilea recorded another strong year in FY24, its third successive year of cash flow positivity and its strongest operating performance to date. Lead drug Cresemba continued to dominate performance on broad-based demand, contributing 85-90% of FY24 revenue of CHF208.5m, spearheading the guidance beat. Operating profit of CHF61.2m was up threefold over FY23’s CHF19.2m, translating to operating cash flow of CHF74.4m and a healthy cash balance of CHF124.6m at end-FY24. With Cresemba sales expected to stay strong, additional contributions from Zevtera in the US (commercial launch expected by mid-2025) and BARDA and CARB-X reimbursements, FY25 should be another rewarding year. Management has guided for FY25 revenues of CHF220m and operating profit of c CHF62m. We will present our revised estimates and valuation in an upcoming outlook note but view the 6.9x P/E ratio as an attractive opportunity for investors.