Basilea has entered into an Other Transaction Agreement (OTA) with the Biomedical Advanced Research and Development Authority (BARDA). The US agency, which reports to the Administration for Strategic Preparedness and Response in the United States Department of Health and Human Services, uses OTAs to establish a type of flexible, strategic partnership between government and industry.

According to a statement, BARDA has already awarded Basilea, which is based on the Main Campus of the Switzerland Innovation Park Basel Area, with initial funding of 29 million dollars. The funding will be used to support the development of two clinical antifungal agents: Fosmanogepix and BAL2062.

Potential for funding up to USD 268 million

Over the contractual 12-year term of the agreement, there is a total potential non-dilutive funding of up to 268 million US dollars for the development of active substances to treat infections caused by fungi and bacteria. According to the statement, this corresponds to around 60 per cent of the total development costs. Under the OTA, BARDA and Basilea can jointly decide to move drug candidates into and out of the portfolio based on product performance, technical risk and programmatic need.

As part of the agreement, Basilea has increased its financial targets. Total sales are now expected to be around 203 million Swiss francs instead of the previous 196 million. Additionally, Basilea is raising the operating result from the previously forecast 36 million to 43 million Swiss francs, and the net profit from 42 million to around 60 million Swiss francs.