Basilea is one of the few standalone European companies focused on developing novel antimicrobial drugs. It has two approved hospital-based products: Cresemba for severe mold infections and Zevtera for bacterial infections. Together these underpin the current valuation with upside potential from a US partnering deal for Zevtera and the early-stage oncology pipeline. A US Zevtera deal and potential sales progression for the antimicrobial portfolio are key near-term share price drivers. We value Basilea at CHF1,114.0m or CHF103.2/share.
