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Netherlands arbitral tribunal finds J&J in breach of its agreement with Basilea

The tribunal at the Netherlands Arbitration Institute has found Johnson & Johnson, Johnson & Johnson Pharmaceutical Research and Development, and Cilag GmbH [collectively Johnson & Johnson] in breach of its license agreement with Basilea, which caused the rejection of ceftobiprole by health authorities.

The tribunal awarded Basilea $130m, including lost milestones, other damages and interest.

Ceftobiprole is an anti-MRSA broad-spectrum cephalosporin antibiotic exhibiting activity against a wide spectrum of Gram-positive bacteria, including the ‘superbug’ methicillin-resistant Staphylococcus aureus (MRSA) and penicillin- resistant Streptococcus pneumoniae as well as many clinically important Gram- negative bacteria, including Pseudomonas spp.

Basilea CEO Anthony Man said that this award in their favor has validated their grounds for arbitration.

"Ceftobiprole is a very innovative drug and it has activity against a wide range of bacteria, including MRSA and many Gram- negative pathogens, that no other single antibiotic can currently provide. Patients are dying from serious resistant bacterial infections in hospitals," Man said.

"We are pleased that we will gain full control of the development and commercialisation of Ceftobiprole.

"We are now focusing on completing the return of Ceftobiprole to Basilea at the latest by February 2011 so that we can move forward with its future development and make this important drug available again to patients as soon as possible."