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Dutch court orders J&J to pay US$ 130 mn to Basilea Pharma for drug license breach
Basel, Switzerland | Wednesday, December 1, 2010, 14:00 Hrs  [IST]

Basilea Pharmaceutica Ltd announced that the tribunal has found Johnson & Johnson in breach of its License Agreement with Basilea. The tribunal awarded Basilea approximately USD 130 million as compensation for lost payments related to ceftobiprole, including milestones, other damages and interest.


The tribunal at the Netherlands Arbitration Institute has found Johnson & Johnson, Johnson & Johnson Pharmaceutical Research and Development, LLC and Cilag GmbH International [collectively Johnson & Johnson] in breach of its License Agreement with Basilea, which caused the rejection of ceftobiprole, a novel anti-MRSA broad-spectrum antibiotic, by health authorities.


The tribunal awarded an amount of approximately USD 130 million, including lost milestones, other damages and interest. The award is immediately enforceable.


"This award in our favour has validated our grounds for arbitration," said Dr. Anthony Man, CEO of Basilea. "Ceftobiprole is a very innovative drug. 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. This is a very unfortunate situation in which patients have not been able to access this potentially life-saving drug. We are pleased that we will gain full control of the development and commercialization 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."


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. Ceftobiprole's key features may allow physicians to use it as the first treatment when MRSA is proven or suspected. The rights for ceftobiprole are being transferred back to Basilea from Cilag GmbH International, a Johnson & Johnson company.


Basilea Pharmaceutica Ltd. is headquartered in Basel, Switzerland, and listed on the SIX Swiss Exchange. Its fully integrated research and development operations are currently focused on antibiotics, antifungals and oncology drugs, as well as on the development of dermatology drugs, targeting the medical challenge of resistance and non-response to current treatment options in the hospital and specialty care setting.

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