Basilea Pharmaceutica ((CH:BSLN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Basilea Pharmaceutica’s recent earnings call painted a picture of robust sales performance and strategic milestones, such as the successful U.S. launch of Zevtera and securing significant funding. However, the company faces challenges with decreased net profit due to past tax benefits, rising operating expenses, and an anticipated decline in product revenue from reduced supply to Pfizer. Overall, the sentiment remains positive, albeit with caution due to financial pressures.
Impressive Sales Growth for Cresemba
Cresemba has been a standout performer for Basilea, achieving a remarkable 24.8% increase in global in-market sales over the past year, alongside a 21.7% rise in royalty income year-on-year. This growth underscores the drug’s strong market presence and the company’s effective sales strategies.
Strong Financial Performance
Basilea reported a positive operating result of CHF 24 million for the first half of 2025, with total revenue increasing by 36% compared to the same period in 2024. This financial performance reflects the company’s ability to capitalize on its product portfolio and strategic initiatives.
Secured Additional Funding
In a significant financial boost, Basilea secured USD 39 million in nondilutive funding from BARDA. This funding is earmarked to support the development of antifungal candidates, reinforcing the company’s commitment to expanding its therapeutic offerings.
Strategic In-Licensing
Basilea has strategically in-licensed ceftibuten-ledaborbactam, a Phase III-ready oral antibiotic aimed at treating complicated urinary tract infections. This move is expected to bolster the company’s pipeline and future market offerings.
Zevtera U.S. Launch
The successful launch of Zevtera in the U.S. marks a significant commercial milestone for Basilea. This achievement is expected to enhance the company’s market penetration and revenue streams in the competitive U.S. market.
Decrease in Net Profit
Despite strong sales, Basilea’s net profit decreased from CHF 20.7 million in the first half of 2024 to CHF 15.8 million in the same period of 2025. This decline is attributed to a one-time income tax benefit realized in 2024, highlighting the impact of non-recurring financial items on profitability.
Increased Operating Expenses
Operating expenses rose to CHF 55.7 million, primarily driven by costs associated with the ongoing fosmanogepix Phase III program. This increase reflects the company’s continued investment in its research and development pipeline.
Expected Decrease in Product Revenue
Basilea anticipates a 17% reduction in product revenue, bringing it to about CHF 48 million year-on-year. This decline is mainly due to decreased product supply to Pfizer, indicating potential challenges in maintaining previous revenue levels.
Forward-Looking Guidance
Looking ahead, Basilea has updated its financial guidance for 2025, projecting a total revenue increase to CHF 225 million. Revenue from Cresemba and Zevtera is expected to reach around CHF 190 million, with a 14% growth in royalty income to CHF 110 million. The company anticipates an operating profit of approximately CHF 50 million, despite rising R&D expenses, which are set to reach CHF 105 million due to strategic in-licensing activities.
In conclusion, Basilea Pharmaceutica’s earnings call reflects a company in a strong position, with impressive sales growth and strategic achievements. While financial pressures such as decreased net profit and rising expenses present challenges, the overall sentiment remains positive, supported by robust forward-looking guidance and strategic initiatives.