Basilea reported H1/2019 revenues of CHF63.2m, 10% ahead of our estimate, driven by robust performance from marketed products Cresemba (antifungal) and Zevtera (MRSA antibiotic). The latter more than offset the lack of deferred revenue from Toctino (vs. CHF18.8m in H1/2018), leading to revenue growth of 5.5%. Total operating expenses, which declined by 5% YoY, were in line with our forecasts, resulting in a smaller than expected operating loss of CHF13.2m vs. our CHF19.5m forecast and CHF20.4m in the prior year. Management updated its financial outlook for FY2019. Since our forecasts are in line with the tightened ranges, we expect limited changes to our estimates. With the shares trading well below our sum-of-the-parts derived target price ("TP") of CHF108 per share, suggesting the shares are only pricing in revenue from Cresemba in marketed regions, we maintain our OUTPERFORM recommendation.
20 Aug 2019
Revenue growth drives robust H1/2019 results
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Revenue growth drives robust H1/2019 results
Basilea Pharmaceutica AG (0QNA:LON) | 0 0 0.0% | Mkt Cap: 605.3m
- Published:
20 Aug 2019 -
Author:
Brigitte de Lima, PHD CFA -
Pages:
5
Basilea reported H1/2019 revenues of CHF63.2m, 10% ahead of our estimate, driven by robust performance from marketed products Cresemba (antifungal) and Zevtera (MRSA antibiotic). The latter more than offset the lack of deferred revenue from Toctino (vs. CHF18.8m in H1/2018), leading to revenue growth of 5.5%. Total operating expenses, which declined by 5% YoY, were in line with our forecasts, resulting in a smaller than expected operating loss of CHF13.2m vs. our CHF19.5m forecast and CHF20.4m in the prior year. Management updated its financial outlook for FY2019. Since our forecasts are in line with the tightened ranges, we expect limited changes to our estimates. With the shares trading well below our sum-of-the-parts derived target price ("TP") of CHF108 per share, suggesting the shares are only pricing in revenue from Cresemba in marketed regions, we maintain our OUTPERFORM recommendation.