Basilea gets $130m tribunal award for key drug

Basilea has been awarded around $130 million for lost payments for its superbug antibiotic after a tribunal ruled that former partner Johnson & Johnson breached its license agreement. The Swiss biotech group, which was developing ceftobiprole with the US healthcare company, said on Monday the amount awarded included lost milestone payments as well as other damages.

Earlier this year, Johnson & Johnson ended a partnering deal with Basilea, returning the rights to ceftobiprole to Basilea after European and US authorities decided not to back the drug, citing doubts about clinical data reliability. "This award in our favour has validated our grounds for arbitration," Basilea Chief Executive Anthony Man said in a statement. "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," he said. Basilea said it was focusing on completing the return of the drug, also known as Zeftera, by February 2011 at the latest. The group told Reuters it still sees "significant" sales potential for the drug.