Basilea commercializes its products through third-party partners in nearly 80 countries, rather than employing its own sales force. This lean model allows revenues from new country launches to grow without a corresponding increase in SG&A costs, directly boosting profitability and de-risking future patent expiries.
Instead of facing a single, catastrophic patent cliff, Basilea anticipates a gradual revenue decline it calls a 'patent cone'. This is because its products lose exclusivity at different times in different major markets (e.g., US in 2027, Europe in 2028, Japan in the 2030s), smoothing the financial impact over several years.
Basilea successfully acquires assets by focusing on the anti-infectives space, a niche often overlooked by big pharma. This strategy means they don't compete with larger companies for assets, allowing them to secure favorable, milestone-based deals that de-risk development and align costs with progress.
The challenge with new antibiotics is that stewardship principles discourage widespread use, hurting sales volume. The UK's 'pull incentive' model addresses this by guaranteeing commercial revenue independent of volume. This balances the need for stewardship with the commercial return required for innovation.