Basilea Pharmaceutica (BSLN) AI Stock Analysis

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Basilea Pharmaceutica

(BSLN)

72Outperform

Basilea Pharmaceutica's strong financial performance, highlighted by substantial revenue growth and improved profitability, is a key strength. The positive earnings call further supports its growth outlook. While the technical indicators suggest stability, the high liabilities present a risk. The valuation appears favorable, suggesting the stock may be undervalued.

Positive Factors

Market Exclusivity

Market exclusivity of Cresemba was extended to October 2027 in the EU and September 2027 in the U.S., providing flexibility for transition to a follow-up antifungal drug.

Regulatory Approvals

Zevtera was approved by the FDA for a broad range of infections and eligible for New-Technology Add-On Payment in the U.S., enhancing its market potential.

Sales Milestones

Cresemba continues to perform strongly, with sales in the Asia-Pacific region and China exceeding a pre-defined sales threshold, triggering a $2.5M milestone payment.

Negative Factors

Market Penetration Risks

Risks include inability by Basilea's partners to optimize the value of isavuconazole and ceftobiprole globally and inability to achieve sufficient market penetration with ceftobiprole, particularly in the U.S.

Partnership Risks

Risks include inability by Basilea's partners to optimize the value of isavuconazole and ceftobiprole globally and potential setbacks with clinical-stage candidates.

Basilea Pharmaceutica (BSLN) vs. S&P 500 (SPY)

Market Cap

CHF534.35M

Dividend YieldN/A

Average Volume (3M)39.03K

Price to Earnings (P/E)6.9

Beta (1Y)1.00

Revenue Growth32.30%

EPS Growth631.04%

CountryCH

Employees164

SectorHealthcare

Sector Strength50

IndustryBiotechnology

Share Statistics

EPS (TTM)4.70

Shares Outstanding13,309,903

10 Day Avg. Volume29,310

30 Day Avg. Volume39,028

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF84.50

Price Target Upside90.96% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Basilea Pharmaceutica Business Overview & Revenue Model

Company DescriptionBasilea Pharmaceutica (BSLN) is a biopharmaceutical company focused on the research, development, and commercialization of innovative pharmaceutical products to address the medical needs in the areas of oncology and infectious diseases. Based in Switzerland, Basilea's core products include a portfolio of treatments for bacterial infections and antifungal agents, as well as targeted cancer therapies. The company is committed to improving patient outcomes through the development of novel medicines that address drug resistance and provide new therapeutic options.

How the Company Makes MoneyBasilea Pharmaceutica generates revenue primarily through the sale of its pharmaceutical products, which include Cresemba (an antifungal) and Zevtera (an antibiotic), to healthcare providers and institutions. The company also earns income through licensing agreements and collaborations with other pharmaceutical companies, who may pay royalties, milestone payments, or upfront fees to gain access to Basilea's proprietary compounds and technologies. Additionally, Basilea engages in strategic partnerships to expand its market reach and leverage its R&D capabilities, further contributing to its revenue streams. Key factors influencing earnings include the successful commercialization of its product pipeline, regulatory approvals, and the ability to secure and maintain partnerships within the pharmaceutical industry.

Basilea Pharmaceutica Financial Statement Overview

Summary

Basilea Pharmaceutica has shown strong revenue growth, improved profitability, and robust cash flow management. However, high liabilities remain a concern despite positive equity.

Income Statement

Positive

Basilea Pharmaceutica has shown strong revenue growth from 2023 to 2024 with an increase of 32.3%. The gross profit margin decreased from 2023 to 2024 due to a decline in gross profit. However, the net profit margin improved significantly to 37.2% in 2024, indicating better profitability. The EBIT and EBITDA margins also saw significant improvements, indicating enhanced operational efficiency.

Balance Sheet

Neutral

The company has improved its balance sheet with positive stockholders' equity in 2024, moving from negative in previous years. The debt-to-equity ratio has improved as equity turned positive, and the equity ratio at 31.4% indicates a stronger financial position. However, high total liabilities relative to assets remain a concern.

Cash Flow

Positive

The cash flow statement shows a strong free cash flow growth of 449.6% from 2023 to 2024, indicating robust cash generation. The operating cash flow to net income ratio is healthy, supporting the company's profitability and cash generation capabilities. The free cash flow to net income ratio is also strong, reflecting efficient cash management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
208.54M	157.63M	147.76M	148.12M	127.63M
	Gross Profit
169.86M	130.84M	120.96M	124.05M	103.58M
	EBIT
61.18M	19.20M	16.34M	1.17M	-23.26M
	EBITDA
63.13M	23.18M	26.21M	6.72M	-2.24M
	Net Income Common Stockholders
77.59M	10.45M	12.15M	-6.83M	-14.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
120.71M	59.90M	86.57M	149.95M	167.28M
	Total Assets
257.76M	173.29M	220.85M	247.27M	229.79M
	Total Debt
111.67M	128.61M	187.14M	218.96M	242.32M
	Net Debt
-9.03M	68.71M	150.57M	164.00M	186.71M
	Total Liabilities
176.76M	183.29M	241.56M	305.87M	331.84M
	Stockholders Equity
81.00M	-10.00M	-20.71M	-58.61M	-102.05M
Cash Flow		Free Cash Flow
72.65M	13.21M	3.75M	-32.88M	-56.40M
	Operating Cash Flow
74.36M	14.24M	7.06M	-32.02M	-54.13M
	Investing Cash Flow
-1.01M	-1.03M	91.65M	3.58M	-34.96M
	Financing Cash Flow
-13.16M	-57.30M	-45.25M	16.64M	45.07M

Basilea Pharmaceutica Technical Analysis

Technical Analysis Sentiment

Positive

Last Price44.25

Price Trends

50DMA

44.64

Negative

100DMA

43.02

Positive

200DMA

43.09

Positive

Market Momentum

MACD

0.23

Negative

RSI

56.47

Neutral

STOCH

58.38

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BSLN, the sentiment is Positive. The current price of 44.25 is above the 20-day moving average (MA) of 42.57, below the 50-day MA of 44.64, and above the 200-day MA of 43.09, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:BSLN.

Basilea Pharmaceutica Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSLN	72 Outperform	CHF534.35M	6.86		―	32.30%	631.04%
NWRN	66 Neutral	$158.49M	11.36		―	450.19%	―
KURN	57 Neutral	CHF894.16M	―	-6.44%	―	125.11%	69.27%
IDIA	55 Neutral	CHF322.29M	―		―	11.61%	-356.20%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%
MOLN	47 Neutral	$139.90M	―	-33.54%	―	-29.38%	15.51%
SANN	47 Neutral	CHF137.40M	2.58	-93.91%	―	-62.17%	-166.33%

* Healthcare Sector Average

Performance Comparison

CH:BSLN

Basilea Pharmaceutica

44.40

1.30

3.02%

CH:MOLN

Molecular Partners AG

3.44

0.13

3.77%

CH:IDIA

Idorsia Ltd

1.28

-1.03

-44.59%

CH:NWRN

Newron Pharmaceuticals SpA

8.24

-2.10

-20.31%

CH:SANN

Santhera Pharmaceuticals Holding

13.18

4.04

44.20%

CH:KURN

Kuros Biosciences

24.00

16.62

225.20%

Basilea Pharmaceutica Earnings Call Summary

Earnings Call Date:Feb 18, 2025

(Q4-2024)

% Change Since: 8.32%|

Next Earnings Date:Aug 19, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong financial performance with substantial growth in key products like Cresemba and new approvals for Zevtera. The company secured significant non-dilutive funding and expanded its pipeline, although it faced challenges with the tonabacase development. Overall, the positive aspects significantly outweigh the few lowlights.

Q4-2024 Updates

Positive Updates

Strong Financial Performance

Basilea reported a tripling of operating profit and a five-fold increase in operating cash flow for 2024. Total revenue grew by 32% to CHF208.5 million, with Cresemba and Zevtera-related revenue increasing by 30% year-on-year.

Cresemba Sales Growth

Cresemba achieved a 20% increase in global in-market sales, totaling over $0.5 billion for the 12-month period ending September 2024. It remains the largest branded antifungal for invasive fungal infections worldwide.

Zevtera U.S. Approval

Zevtera received FDA approval for a broad range of indications in the U.S., with Innoviva Specialty Therapeutics as the commercialization partner.

Non-Dilutive R&D Funding

Basilea secured significant non-dilutive funding, including up to $268 million from BARDA and additional grants from CARB-X to support antifungal and antibiotic development.

Pipeline Expansion

Significant progress was made in expanding the pipeline, including the initiation of Phase 3 studies for fosmanogepix, development of BAL2420, and acquisition of LptA inhibitors.

Negative Updates

Tonabacase Development Halt

After a thorough preclinical evaluation, Basilea decided not to pursue the development of tonabacase, a bactericidal endolysin, as it did not meet the company's stringent criteria.

Product Supply Decrease to Pfizer

A decrease in product supply to Pfizer was announced, resulting from the successful transfer of the majority of manufacturing responsibilities to the partner.

Company Guidance

During the Basilea Pharmaceutica Full-Year Results 2024 Conference Call, the company provided guidance on several key metrics. Cresemba, their leading antifungal product, saw a 20% increase in global in-market sales, surpassing $0.5 billion for the year ending September 2024. This growth contributed to a 30% year-on-year increase in Cresemba and Zevtera-related revenue. Basilea reported a tripling of operating profit and a five-fold increase in operating cash flow compared to 2023, ending the year with a strong cash position and net cash. Total revenue for 2024 grew by 32% to CHF208.5 million, with Cresemba and Zevtera-related revenue reaching CHF194.9 million. The company achieved a net profit of CHF77.6 million, supported by a CHF17.3 million deferred tax asset gain. For 2025, Basilea expects total revenue to grow to approximately CHF220 million, supported by a 14% increase in royalty income and reimbursements from BARDA and CARB-X. Operating profit is anticipated to remain high at around CHF62 million, despite an expected 14% increase in R&D expenses. The company plans to maintain its focus on expanding its pipeline in antifungals and antibacterials while leveraging non-dilutive funding to support its research and development efforts.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.