As part of the agreement, Stiefel will acquire global rights to Toctino and Basilea’s existing distribution agreements for the drug.
Basilea, which will receive an upfront payment of approximately CHF225m (£146m), is further eligible for a milestone payment rounding about £50m, related to a regulatory milestone of alitretinoin in the US.
Basilea CEO Dr. Anthony Man said the completion of the transaction is an important step for Basilea, providing the company with additional non-dilutive capital to achieve clinical milestones and further strengthen its focused portfolio of anti-infective and oncology drugs, which includes two innovative drugs in the final stage of clinical development and close to regulatory submission, respectively.
”We will continue to assist Stiefel in the analysis of the U.S. phase III HANDEL study of alitretinoin and the preparation of a pre-submission meeting with the U.S. FDA," Man added.
Under the agreement, Basilea will provide financial guidance for 2012 and also receive royalties on sales in US starting three years after launch of the product.