Basilea Reports Strong H1 2024 Results, Ups Full-Year Revenue and Profit Guidance

Basilea Pharmaceutica Ltd, a biopharmaceutical company based in Allschwil, Switzerland, has reported its financial results for the first half of 2024, ending June 30. Chief Executive Officer David Veitch highlighted several key accomplishments, including the approval of Zevtera in the United States for a broad range of indications. The company is actively seeking a partner for Zevtera's U.S. commercialization. Furthermore, the Committee for Medicinal Products for Human Use of the European Medicines Agency recommended expanding Cresemba's indications to include pediatric patients. This expansion is anticipated to receive formal approval from the European Commission in the third quarter of this year, extending Cresemba's market exclusivity in the EU by two years until Q4 2027. Additionally, Basilea is gearing up for the phase 3 trial of its broad-spectrum antifungal, fosmanogepix, with the first study targeting invasive yeast infections expected to commence soon.

Chief Financial Officer Adesh Kaul expressed satisfaction with the company's positive operating result, net profit, and cash flow for the first half of 2024. Due to a robust financial performance in H1 2024, Basilea has raised its financial guidance for the entire year. The company now projects higher revenue and profit than previously estimated. It expects significant milestone payments related to Cresemba in the second half of 2024. The company fully repaid its senior secured loan by the end of March, bolstered by its strong financial position, enabling continued investment in its pipeline and strategy execution.

In H1 2024, Basilea recorded total revenue of CHF 76.3 million, compared to CHF 84.9 million in H1 2023. Royalty income from Cresemba grew by 16.6% year-on-year to CHF 42.8 million, while product revenue surged by 109% year-on-year to CHF 27.6 million. Milestone payments were CHF 2.9 million, down from CHF 30.6 million in H1 2023, but higher milestone payments are expected in H2 2024. Other revenue reached CHF 3.0 million, including BARDA reimbursements for the ceftobiprole phase 3 program.

Research and development expenses rose to CHF 33.6 million from CHF 21.5 million in the previous year, driven by preparations for the fosmanogepix phase 3 program, preclinical profiling of BAL2026 and tonabacase, acquisition of the LptA inhibitor program, continuation of the ceftobiprole phase 3 program, and other early-stage research. Selling, general, and administrative expenses decreased to CHF 15.3 million from CHF 16.5 million, while the cost of products sold increased to CHF 18.1 million from CHF 10.0 million.

Basilea achieved an operating result of CHF 9.3 million, down from CHF 36.9 million in H1 2023. The company recognized deferred tax assets of CHF 13.4 million, resulting in a net profit of CHF 20.7 million, compared to CHF 31.8 million in the previous year. Basic and diluted earnings per share were CHF 1.72 and CHF 1.61, respectively, down from CHF 2.66 and CHF 2.42 in H1 2023.

Operating activities provided a positive net cash flow of CHF 17.9 million, compared to CHF 21.9 million in H1 2023. By the end of March 2024, Basilea repaid the remaining CHF 15.6 million of a CHF 75.0 million senior secured loan. Since 2022, the company has reduced its debt by CHF 124 million, resulting in a net debt of CHF 26.2 million as of June 30, 2024. Cash and cash equivalents and restricted cash amounted to CHF 69.5 million, down from CHF 112.9 million in the previous year.

For the full year 2024, Basilea has updated its financial guidance, projecting Cresemba and Zevtera-related revenue to grow by 26% to approximately CHF 190 million and an operating result to increase by 88% to around CHF 36 million. Net profit is expected to rise by 300% to roughly CHF 42 million compared to the previous year.

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