Basilea Cilag Collaboration

From Basilea's press release:

"Basilea Enters a Global Collaboration with Johnson & Johnson's Affiliate Cilag AG International for Basilea's Phase III, First-in-Class Antibiotic Ceftobiprole (BAL5788)
Basel, Switzerland, 3rd February 2005

Basilea Pharmaceutica AG announced today that it has entered into an exclusive worldwide agreement with Cilag AG International, a Johnson & Johnson company, to develop, manufacture and market ceftobiprole, Basilea's novel broad-spectrum cephalosporin antibiotic that has activity against methicillin-resistant Staphylococcus aureus (MRSA). Ceftobiprole is in phase III clinical trials in complicated skin and skin structure infections and hospital-acquired pneumonia trials are in preparation. Both indications have been granted fast track designation by the U.S. Food & Drug Administration.

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 370 million Swiss Francs. Basilea will also receive significant double-digit royalties on worldwide sales. Ortho-McNeil Pharmaceutical, Inc., another Johnson & Johnson company, will market ceftobiprole in the U.S. and its affiliate companies, known as Janssen-Cilag, will market the product outside the U.S. Basilea has retained an option to co-promote ceftobiprole in the U.S., in major European countries, Japan and China. Ortho-McNeil's research affiliate, Johnson & Johnson Pharmaceutical Research and Development, L.L.C., will develop ceftobiprole in collaboration with Basilea."