Friday, 5 April 2024 Reading time : 2 minutes

The shares of Swiss biotechnology company Basilea were among the top performers yesterday, Thursday. With a gain of more than 12%, the equities outperformed the Swiss Performance Index, which barely moved.

The rally was triggered by the approval of the antibiotic Ceftobiprole in the US. As a result, Basilea can now start to market the drug in the United States. The antibiotic is already approved in several European countries under the name Zevtera. The approval is an important milestone for the Basel-based company: “Zevetra has ten years of market exclusivity from the date of approval and we believe the US provides the most important global commercial opportunity for the brand”, Basilea stated in a press release.

Basilea is now looking for a suitable distribution partner to commercialise the antibiotic in the US. Originally, the partnership was to be announced together with the US approval, but the company now hopes to make a decision by the middle of the year. 

A successful positioning on the US market is also potentially important for Basilea because the patent protection for the antifungal drug Cresemba expires in key sales markets in 2027. The drug is currently one of Basilea's most important sales drivers. The newly launched antibiotic should at least partially cushion these losses. 

For investors who want to position themselves in Basilea but want to hedge against possible price setbacks, a barrier reverse convertible on Basilea offers an investment opportunity.

Investment solution
For investors who want to position themselves in Basilea but want to hedge against possible price setbacks, a Barrier Reverse Convertible on the share offers an investment opportunity. The product features a barrier of 74% and pays a guaranteed coupon of 7% per year.
Termsheet (Valor: 132912317)

The Barrier Reverse Convertible on the Swiss pharmaceutical stocks Basilea, Lonza and Sandoz offers a barrier of 65% and a guaranteed coupon of 9.5% per annum.
Termsheet (Valor: 132912318)

Indicative terms 

 

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