Arbitration panel awards $130M to Basilea
A tribunal at the Netherlands Arbitration Institute ordered Johnson & Johnson (NYSE:JNJ) to pay $130 million to former partner Basilea Pharmaceutica AG (SIX:BSLN) for breaching a 2005 deal for ceftobiprole. Basilea filed the request for arbitration last year, alleging that J&J had caused a delay in the approval of the broad spectrum anti-MRSA cephalosporin antibiotic in the U.S. and EU. In June, the European Medicines Agency's CHMP issued a second negative opinion for an MAA, while FDA issued a complete response letter for an NDA last December. Both agencies cited concerns over the reliability of data from clinical trials, which were sponsored by J&J, as factors in their decisions. J&J is transferring full rights to the antibiotic back to Basilea, with the process expected to be completed by February. At June 30, Basilea had CHF193.8 million in cash. ...