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Basilea and J&J enter global antibiotic deal

Basilea Pharmaceutica has entered into an exclusive agreement with Cilag AG International, a Johnson & Johnson affiliate, to develop, manufacture and market ceftobiprole, Basilea's novel broad-spectrum antibiotic.

Ceftobiprole has activity against methicillin-resistant Staphylococcus aureus (MRSA) and is in phase III clinical trials in complicated skin and skin structure infections, with hospital-acquired pneumonia trials also in preparation. Both indications have been granted fast track designation by the FDA.

Under the terms of the agreement, Basilea will receive a substantial upfront payment and is eligible for additional payments on achievement of pre-specified clinical, regulatory and sales milestones. Upfront and milestone payments may together total up to CHF370 million and Basilea will also receive significant double-digit royalties on worldwide sales.

Ortho-McNeil Pharmaceutical, another Johnson & Johnson company, will market ceftobiprole in the US and its affiliate companies, known as Janssen-Cilag, will market the product outside the US. Basilea has retained an option to co-promote ceftobiprole in the US, in major European countries, Japan and China.

Ortho-McNeil’s research affiliate, Johnson & Johnson Pharmaceutical R&D, will develop ceftobiprole in collaboration with Basilea.