Basilea Pharmaceutica shares tumbled more than 5% Tuesday after the Swiss biotech firm reported a 48% decline in net profit to CHF 40 million for 2025, despite revenue climbing 11% to CHF 232.4 million. The company's research and development spending surged 37.4% to CHF 106 million, reflecting management's commitment to advancing late-stage anti-infective programs.

Operating performance showed strength, with EBIT reaching CHF 51.5 million and a 22% margin, exceeding both guidance and consensus forecasts. The results were bolstered by a 15% increase in royalty income to CHF 111.6 million, driven by strong demand for antifungal therapy Cresemba in key markets. Contract revenue also jumped to CHF 38 million from CHF 14 million a year earlier, supported by funding from BARDA and CARB-X.

For 2026, management projects about 10% revenue growth to CHF 255-257 million and roughly 20% EBIT growth, despite planned increases in R&D spending. Analysts at Kepler Cheuvreux noted that expected royalty income of about CHF 120 million and anticipated CHF 35 million in milestone payments should offset foreign-exchange headwinds and lower supply-related product revenue. The brokerage highlighted that Zevtera's US ramp should become more visible from Q2 2026, with the company estimating about CHF 600 million in cumulative cash flows from Cresemba and Zevtera over the next five years.