Basilea Pharmaceutica (BSLN) AI Stock Analysis

• Market Cap: CHF650.44M
• Dividend Yield: N/A
• Average Volume (3M): 41.01K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.12
• Revenue Growth: 58.51%
• EPS Growth: N/A
• Country: CH
• Employees: 164
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.26
• Shares Outstanding: 13,318,449
• 10 Day Avg. Volume: 32,790
• 30 Day Avg. Volume: 41,007
• PEG Ratio: 0.01
• Price to Book (P/B): 6.17
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 6.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF87.00
• Price Target Upside: 60.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: CHF53.00 ▼(-2.21% Downside)

Basilea Pharmaceutica's stock score is driven by strong financial performance, particularly in revenue growth and cash flow management. The stock's valuation is attractive, with a low P/E ratio indicating potential undervaluation. Technical analysis shows neutral momentum, while the earnings call provides a positive outlook with some caution due to financial pressures. The absence of notable corporate events does not impact the score.

Positive Factors

Revenue Growth

The strong revenue growth indicates effective market penetration and product demand, supporting long-term financial health and operational expansion.

Strategic Partnerships

Securing significant funding through strategic partnerships enhances Basilea's R&D capabilities, fostering innovation and competitive advantage in the biotech sector.

Product Launch

The successful U.S. launch of Zevtera expands Basilea's market presence and revenue potential, reinforcing its position in the competitive pharmaceutical industry.

Negative Factors

Rising Operating Expenses

Increased operating expenses can pressure profit margins and cash flow, potentially limiting financial flexibility and impacting future profitability.

Decline in Product Revenue

The anticipated decline in product revenue from reduced supply to Pfizer may affect Basilea's overall revenue growth and market share in the short to medium term.

High Liabilities

High liabilities relative to assets can constrain financial flexibility and increase risk, potentially impacting Basilea's ability to invest in growth opportunities.

Basilea Pharmaceutica Business Overview & Revenue Model

Company Description

Basilea Pharmaceutica AG, a commercial stage biopharmaceutical company, focuses on the development of products that address the medical needs in the therapeutic areas of oncology and anti-infectives. It offers Cresemba, an intravenous and oral azole antifungal drug for the treatment of invasive aspergillosis and mucormycosis in the United States, and the European Union, as well as in Phase III clinical trials for invasive fungal infections in Japan. The company also provides Zevtera, an antibiotic for the treatment of community and hospital-acquired pneumonia, as well as in Phase III clinical trials for the treatment of acute bacterial skin and skin structure infections, and Staphylococcus aureus bacteremia. In addition, it engages in developing Derazantinib, a small molecule inhibitor, which is in phase 2 clinical trial for bile duct cancer, as well as in phase ½ clinical trial for bladder and stomach cancer; and Lisavanbulin, a tumor checkpoint controller drug. Basilea Pharmaceutica AG was founded in 2000 and is headquartered in Basel, Switzerland.

How the Company Makes Money

Basilea Pharmaceutica generates revenue primarily through the commercialization of its pharmaceutical products, including sales of its approved drugs and potential royalties from product licensing agreements. The company also engages in strategic partnerships with larger pharmaceutical firms, which may include upfront payments, milestone payments, and royalties based on future sales. These partnerships are crucial for the development and market access of Basilea's products, especially in international markets. Additionally, the company may receive grants and funding for research and development initiatives, contributing to its overall revenue. Basilea's ability to successfully navigate regulatory approvals and market its products effectively is key to its financial performance.

Basilea Pharmaceutica Financial Statement Overview

Summary

Basilea Pharmaceutica has demonstrated strong revenue growth and improved profitability, with a significant increase in net profit margin to 37.2% in 2024. The balance sheet has strengthened with positive equity, although high liabilities remain a concern. Cash flow management is robust, with a 449.6% increase in free cash flow, indicating efficient cash generation.

Income Statement

Basilea Pharmaceutica has shown strong revenue growth from 2023 to 2024 with an increase of 32.3%. The gross profit margin decreased from 2023 to 2024 due to a decline in gross profit. However, the net profit margin improved significantly to 37.2% in 2024, indicating better profitability. The EBIT and EBITDA margins also saw significant improvements, indicating enhanced operational efficiency.

Balance Sheet

The company has improved its balance sheet with positive stockholders' equity in 2024, moving from negative in previous years. The debt-to-equity ratio has improved as equity turned positive, and the equity ratio at 31.4% indicates a stronger financial position. However, high total liabilities relative to assets remain a concern.

Cash Flow

The cash flow statement shows a strong free cash flow growth of 449.6% from 2023 to 2024, indicating robust cash generation. The operating cash flow to net income ratio is healthy, supporting the company's profitability and cash generation capabilities. The free cash flow to net income ratio is also strong, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.23M	208.54M	157.63M	147.76M	148.12M	127.63M
Gross Profit	88.86M	169.86M	130.84M	120.96M	124.05M	103.58M
EBITDA	65.53M	63.13M	23.18M	26.21M	6.72M	-2.24M
Net Income	64.76M	77.59M	10.45M	12.15M	-6.83M	-14.72M
Balance Sheet
Total Assets	248.85M	257.76M	173.29M	220.85M	247.27M	229.79M
Cash, Cash Equivalents and Short-Term Investments	128.37M	120.71M	59.90M	84.70M	148.70M	167.28M
Total Debt	96.79M	111.67M	128.61M	187.14M	218.96M	242.32M
Total Liabilities	145.69M	176.76M	183.29M	241.56M	305.87M	331.84M
Stockholders Equity	103.16M	81.00M	-10.00M	-20.71M	-58.61M	-102.05M
Cash Flow
Free Cash Flow	66.57M	72.65M	13.21M	3.75M	-32.88M	-56.40M
Operating Cash Flow	67.97M	74.36M	14.24M	7.06M	-32.02M	-54.13M
Investing Cash Flow	-1.69M	-1.01M	-1.03M	91.65M	3.58M	-34.96M
Financing Cash Flow	-14.49M	-13.16M	-57.30M	-45.25M	16.64M	45.07M

Basilea Pharmaceutica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BSLN, the sentiment is Positive. The current price of 54.2 is above the 20-day moving average (MA) of 49.50, above the 50-day MA of 48.34, and above the 200-day MA of 47.64, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 76.21 is Negative, neither overbought nor oversold. The STOCH value of 83.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:BSLN.

Basilea Pharmaceutica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWRN	74 Outperform	CHF402.21M	16.68	―	―	744.64%	―
BSLN	73 Outperform	CHF650.44M	9.07	―	―	58.51%	―
KURN	61 Neutral	CHF1.12B	-175.43	-7.82%	―	104.01%	33.25%
MOLN	54 Neutral	CHF136.47M	-2.04	-49.86%	―	-100.00%	14.45%
SANN	53 Neutral	CHF163.05M	-2.44	-301.13%	―	-56.85%	-186.55%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IDIA	44 Neutral	CHF1.03B	-6.03	―	―	229.23%	63.47%

Basilea Pharmaceutica Corporate Events

Basilea Achieves Sales Milestone with Cresemba in Europe

Basilea Pharmaceutica announced a USD 30 million sales milestone payment triggered by strong sales of its antifungal drug Cresemba in Europe, managed by its license partner Pfizer. This milestone reflects the growing demand and significant medical need for Cresemba, which has seen a 27% increase in global sales over the past year, highlighting its importance in treating life-threatening invasive mold infections.

Basilea Secures BARDA Funding for Novel Antibiotic Development

Basilea Pharmaceutica AG announced that it has secured non-dilutive financial support from the Biomedical Advanced Research and Development Authority (BARDA) for the development of its novel oral antibiotic, Ceftibuten-Ledaborbactam Etzadroxil. This funding, which includes an initial USD 6 million and potential additional funding up to USD 153 million, will support the drug’s development for treating complicated urinary tract infections caused by multi-resistant bacteria, enhancing Basilea’s position in the anti-infective market.

Basilea Secures Additional BARDA Funding for Antifungal Development

Basilea Pharmaceutica announced that the US Biomedical Advanced Research and Development Authority (BARDA) has approved an additional $25 million funding for the development of its antifungal agents, Fosmanogepix and BAL2062. This funding supports ongoing Phase 3 studies and could significantly impact the company’s operations by advancing its drug development pipeline, potentially enhancing its market position in the treatment of life-threatening fungal infections.