Basilea secures $268M BARDA deal for antifungals, antibiotics

Basilea Pharmaceutica is poised to receive a significant financial boost from the U.S. Department of Health and Human Services to advance its antifungal treatments, fosmanogepix and BAL2062. The Swiss biopharmaceutical company has secured a funding commitment of up to $268 million over a period extending more than a decade, according to a recent announcement. This agreement, facilitated through the Biomedical Advanced Research and Development Authority (BARDA), is structured to support the development of innovative antifungal and antibacterial drugs within Basilea's portfolio.

In the immediate future, Basilea will receive $29 million to further develop its antifungal candidates. Fosmanogepix, which originally came from Amplyx Pharmaceuticals and was acquired by Basilea from Pfizer in the previous year, is being prepared for a phase 3 clinical trial targeting invasive yeast infections. On the other hand, BAL2062, acquired from Gravitas Therapeutics, has already completed a phase 1 safety study and is intended to combat molds such as Aspergillus.

The funding structure allows for a dynamic collaboration between BARDA and Basilea, with both parties having the flexibility to decide which drug candidates to prioritize based on their performance, associated risks, and the specific needs of the program. Basilea's CEO, David Veitch, emphasized that this agreement will leverage the company’s strong portfolio and organizational capabilities to address the urgent need for novel antifungals and antibacterials. He expressed confidence that this long-term partnership would assist in achieving Basilea's strategic goal to become a leading company in the field of anti-infectives.

Basilea's relationship with BARDA is not new; it dates back to 2013 when the agency committed $89 million to support the development of the antibiotic BAL30072, although the project was discontinued three years later. The current agreement marks a renewal and expansion of this collaboration, emphasizing the importance of developing new treatments for infectious diseases.

The company's current portfolio includes Cresemba, a treatment for invasive fungal infections, and Zevtera, which is used for bacterial infections. Despite the generally low return on investment in the development of new antifungals and antibiotics—a factor that has led many major biopharmaceutical companies to abandon such projects—Basilea has remained committed to this area. This commitment is especially notable given the context of the industry, where companies like GSK have shown encouraging clinical results against infections but overall interest in antifungal and antibiotic development has waned.

Basilea has strategically shifted its focus from oncology to anti-infectives, swimming against the broader industry trend. This pivot reflects the company's recognition of the critical need for new treatments in this space and its determination to address the challenges associated with infectious diseases. The substantial funding from BARDA underscores the importance and potential impact of Basilea's work in developing new antifungal and antibacterial treatments.