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243. Bull, Bear & Beyond – Basilea Pharmaceutica: executive interview image

243. Bull, Bear & Beyond – Basilea Pharmaceutica: executive interview

S1 E243 · Bull, Bear & Beyond by Edison Group
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In this interview, we speak with Basilea Pharmaceutica CEO David Veitch and CFO Adesh Kaul about the strategy driving one of the world’s leading pure-play anti-infectives companies. They discuss Basilea’s differentiated business model, how disciplined in-licensing, strategic partnering and non-dilutive R&D funding support from government agencies have underpinned its long-term success, and why the company continues to strengthen its position in anti-infectives. David also outlines Basilea’s key strategic priorities, including advancing the Phase III programmes for fosmanogepix and ceftibuten ledaborbactam, while Adesh highlights the commercial and clinical milestones investors should watch over the coming months, the continuing role of acquisitions and in-licensing in strengthening the portfolio, and why he believes Basilea’s long-term value proposition remains underappreciated by the market.

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About ‘Bull, Bear & Beyond’

Bull, Bear & Beyond': features candid conversations with senior executives and from our own team of experts from across industries, exploring strategy, innovation, and the opportunities shaping their markets and 60-second pieces are a compressed summary of content designed to convey our message in a single, easily shareable hit.

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Transcript

Introduction of Basilea Executives

00:00:08
Speaker
Hello and welcome to this Edison TV executive interview where we are speaking to Bazilea. We are joined today by David Veitch, Chief Executive Officer and Adesh Kool, Chief Financial Officer.
00:00:18
Speaker
First, we're going to be speaking with David. Welcome.

Basilea's Focus on Anti-Infectives

00:00:21
Speaker
Thank you. So Bazilea has a strong track record as a pure play anti-infectives company globally. In your own words, what do you believe it is that has given Basilea this edge in what is ultimately a fairly challenging space?
00:00:33
Speaker
Yeah, I think Basilea is focused. I think the first point is focus. So we focus on the treatment, the development, commercialization of antibacterial and antifungal products. I think that is key. i think secondly, having the right business model. yeah And our business model where we acquire the best assets, we develop them, we get non-dilutive funding where we can. And then we choose the right commercial partners to commercialize the assets. I think that model is is is also key. And I think probably thirdly, implicit maybe in the first two, but pick the right products, not just differentiating in products that are innovative, but ones that we believe can actually sell. They address a real unmet

Strategic Priorities and Pipeline Development

00:01:13
Speaker
medical need. that They're probably the key factors, I think, that makes us successful in this area.
00:01:18
Speaker
So with a portfolio now spanning both commercial stage and clinical stage products and drug candidates, what are your key strategic priorities across the next two to three years? Yeah, I think for us and for I guess for most biotech and pharma companies, the sort of lifeblood is the pipeline.
00:01:33
Speaker
So, you know, we've got great increasing revenues now from our commercial products. So we will continue to keep focusing on supporting our partners to generate as many sales as they can of our commercial stage products. But really the focus of sort of senior management and a large part of the company is on the phase three assets, on bringing those to market.
00:01:54
Speaker
as quickly as possible. So, Phosmanagepix, which is in phase three, and then bring in Ceftabrutin-Ledibobactam to start the phase three studies. They're probably our key so strategic priorities, but they're not forgetting also to bring forward the earlier stage compounds towards later clinical stage

Collaborations and Non-Dilutive Funding

00:02:12
Speaker
development. So the company has had long-standing associations with groups like Barda alongside others which has provided ample access to non-dilutive funding. What do you believe has really been driving those collaborations across your programs?
00:02:25
Speaker
ah I think one of the reasons why Basilea has been so successful at gaining non-dilutive funding is probably sort of three things. One is the quality of the products because I think Barda and other non-dilutive funding organizations will only invest in programs they think or assets they think are sure are interesting and important and then secondly i think financial viability so you know even though we get a large proportion of our r and d spend funded by these non-dilutive organizations they don't give 100 yeah I think we have to have skin in the game and therefore they want financial viability on our side. They don't want to invest their money and and us you know not be able pay our piece of the equation. So actually, I think financial viability, the right products. And then thirdly, it's just the experience we've gained over 10, 12 years of working with them. We've got the skills to know how to work with them and we've grown together, the non-funding bodies and us. So we've learned how to work together. So I think experience as well, they're probably the three key reasons.
00:03:22
Speaker
Fantastic. Thanks for joining us today, David. No, thank you. Aleish, thanks for joining us today. Thank you for having me. So, Basilea has been quite acquisitive in recent years. We have a strong pipeline now in place. How do you see the role of such transactions playing into your strategy and operations going forward?
00:03:40
Speaker
So we still have the ambition to be the leading company in our space. And we also believe that there is still unmet medical need out there beyond what we are able to address with the assets that we have in the pipeline.

Acquisitive Strategy and 2026 Milestones

00:03:53
Speaker
And hence, ah in licensing, acquisitions will remain a important part of our strategy going forward. Excellent. So with your half-year results just around the corner, what are some of the key milestones that investors should watch out for in the second half of 2026?
00:04:09
Speaker
So now it is really about execution. Execution on the one hand from a commercial perspective, so hence they should be looking out at the performance of our commercial portfolio in the numbers.
00:04:20
Speaker
And secondly, also execution on the pipeline side, which means any kind of progress that we can show with regard to the ah continuation of the FOSM on JAPICS phase 3 program and the preparation for the start of the safety bo routine later boreback time.
00:04:36
Speaker
program Excellent. If there was one thing that you had to explain that you think might be underappreciated by people about Basilea, what would you like to get across?

Value and Opportunity in Basilea's Strategy

00:04:45
Speaker
I think it's really how attractive actually the space is that we are operating in. People are very much focused on what is actually the peak sales estimates that you can have and with novel antibiotics and antifungals.
00:04:58
Speaker
But I think with the right model, what we are demonstrating is that one can create sustainable value if one is the leader and has critical mass with respect to cash flow generation and actual return on investment. Fantastic. Adash, thanks very much for the insightful discussion. Thank you.
00:05:15
Speaker
If our audience would like to learn more, we refer them to the Edison website where our research is truly accessible.