Basilea's Cresemba and Zevtera: Strong Sales Growth Triggers Milestone Payments

Basilea Pharmaceutica Ltd, a commercial-stage biopharmaceutical company headquartered in Switzerland, reported strong sales growth for its antifungal Cresemba® (isavuconazole) and antibiotic Zevtera® (ceftobiprole medocaril sodium) in 2024. The sales growth in Canada, the Middle East and North Africa (MENA) region, and Europe exceeded thresholds, triggering sales milestone payments from distribution partners to Basilea, totaling approximately CHF 2.2 million.

For Cresemba, the milestone payments comprised a payment for sales in Canada by AVIR Pharma Inc and the first sales milestone payment for the MENA region by Hikma Pharmaceuticals LLC. For Zevtera, the payment reflected a milestone in Europe by Advanz Pharma. David Veitch, Chief Executive Officer of Basilea, expressed his pleasure with the commercial progress of the two brands, stating that their continued growth confirms their significant medical needs around the world.

Basilea's commercial partnerships cover well over 100 countries worldwide. By year-end 2024, Cresemba was marketed in more than 70 countries, while Zevtera was marketed in 20 countries. According to the latest available market data, total global in-market sales of Cresemba in the twelve-month period between October 2023 and September 2024 amounted to USD 533 million, a 20 percent growth year-on-year, making it the largest branded antifungal for invasive fungal infections worldwide.

Cresemba's sales growth can be attributed to its effectiveness in treating invasive fungal infections, such as invasive aspergillosis and mucormycosis, which are significant medical needs in these regions. The drug's oral and intravenous formulations also make it convenient for both hospital and outpatient use, further driving its demand. Additionally, the approval of Cresemba for use in pediatrics in Canada (1 year up to 18 years) and its indication for treating mucormycosis in patients for whom amphotericin B is inappropriate in the MENA region have likely contributed to its increased adoption and sales.

Zevtera's sales growth can be attributed to its broad-spectrum activity against Gram-positive and Gram-negative bacteria, including methicillin-resistant strains (MRSA), making it an effective treatment for bacterial infections. The drug's rapid bactericidal activity and favorable safety profile also make it an attractive option for healthcare providers, driving its demand. Zevtera's approval for treating hospital-acquired bacterial pneumonia (HABP) and community-acquired bacterial pneumonia (CABP) in several European countries has likely contributed to its increased adoption and sales.

The milestone payments received by Basilea from its distribution partners have a positive impact on the company's financial outlook and strategic decision-making. These payments, along with the continued growth in royalties and product revenues, have enabled Basilea to increase its financial guidance for the full year 2024, projecting that both revenue and profit will exceed previous expectations. The positive financial performance and outlook have allowed Basilea to fully repay the remainder of the senior secured loan by the end of March 2024, demonstrating the company's financial strength. This financial strength enables Basilea to continue investing in its pipeline and create value by implementing its strategy to become a leading anti-infectives company.

In conclusion, the strong sales growth of Cresemba and Zevtera, along with the triggered milestone payments, reflect the significant medical needs these drugs address and their effectiveness in treating invasive fungal and bacterial infections. The positive financial outlook and strategic decision-making enabled by these payments position Basilea to continue investing in its pipeline and create value for its stakeholders.