Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Basilea Pharmaceutica, retaining the price target of CHF100.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors, primarily driven by significant financial backing from the U.S. government. The Biomedical Advanced Research and Development Authority (BARDA) has committed an additional $39 million to Basilea Pharmaceutica, which will support the advancement of their antifungal treatments, fosmanogepix and BAL2062. This funding is crucial for the ongoing and upcoming Phase 3 studies, ensuring the continued development of these promising drugs.
Furthermore, Basilea’s antibiotic, Zevtera, is in the process of being rolled out in the U.S. through a partnership with Innoviva Specialty Therapeutics. This partnership is expected to generate substantial royalty-based revenue starting in 2026. Selvaraju’s valuation of Basilea is based on a discounted cash flow model, which projects a strong enterprise value driven by future revenue from key products. Despite some risks, such as market penetration challenges and clinical setbacks, the overall outlook remains positive, supporting the Buy rating with a price target of CHF100.
According to TipRanks, Selvaraju is a 5-star analyst with an average return of 16.9% and a 47.60% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Urogen Pharma, Axsome Therapeutics, and Genmab.