Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on Basilea Pharmaceutica. The associated price target remains the same with CHF100.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ram Selvaraju has given his Buy rating due to a combination of factors including the promising potential of Basilea Pharmaceutica’s antifungal drug, fosmanogepix. The initiation of the FORWARD-IM Phase 3 study marks a significant step in evaluating this drug’s efficacy and safety for treating invasive mold infections. Fosmanogepix, with its novel mechanism of action, has shown promising results in earlier trials and is expected to address critical gaps in current antifungal therapies.
Furthermore, Selvaraju’s valuation of Basilea is based on a discounted cash flow analysis, which estimates a substantial enterprise value driven by future revenues from key products like isavuconazole, ceftobiprole, and fosmanogepix. Despite assigning a conservative 50% probability of approval for fosmanogepix, the analysis supports a firm value of CHF1.21 billion and a price target of CHF100 per share. However, potential risks such as market penetration challenges and clinical setbacks are acknowledged, but the overall outlook remains positive.
In another report released on July 29, Kepler Capital also maintained a Buy rating on the stock with a CHF67.00 price target.