Basilea Pharmaceutica Ltd. announced that the transaction between Basilea and Stiefel, a GSK company, for its dermatology drug Toctino (alitretinoin) has been completed following antitrust approval and meeting other customary provisions.

Under the global agreement, Stiefel gains exclusive worldwide rights to Toctino as well as a license to know-how and assumes Basilea's existing distribution agreements for Toctino. Basilea receives an upfront payment of approximately CHF 225 million (GBP 146 million) and will be eligible for a further milestone payment of up to GBP 50 million, related to a regulatory milestone of alitretinoin in the US. In addition, Basilea will participate in future product sales in the US through royalties starting three years after launch.

As a result of the transaction, chief commercial officer Hans Christian Rohde has transferred to Stiefel, together with certain other employees at Basilea's European affiliates and Swiss headquarters who are actively involved in the commercialization and distribution of Toctino.

A core marketing function is maintained at Basilea headquarters to support market access and pre-launch activities of ceftobiprole and isavuconazole and provide commercial support during the development of BAL30072 and BAL101553. All commercial functions will continue to report to chief operating officer Ronald Scott.

Basilea extends its thanks to Hans Christian Rohde and Basilea's commercial organization for their role in the international commercialization of alitretinoin and the building of the Toctino brand.

Dr Anthony Man, chief executive officer of Basilea, stated, “The completion of the transaction is an important step for Basilea, providing us with additional non-dilutive capital to achieve clinical milestones and further strengthen our 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 US phase III HANDEL study of alitretinoin and the preparation of a pre-submission meeting with the US FDA.”

The upfront payment will be recognized as deferred revenue on a straight-line basis through mid-2018. Basilea will provide financial guidance for 2012 with its half-year financials.

Basilea Pharmaceutica Ltd. focuses on antibiotics, antifungals and oncology drugs, targeting the medical challenge of resistance and non-response to current treatment options.