The Basel-based pharmaceutical company Basilea has entered into a license agreement with the US company Pfizer for its antifungal Cresemba. In addition to an upfront payment, Basilea will be eligible for royalties on sales and additional milestone payments of more than USD 400 million.
By entering into the distribution and license agreement, Basilea will receive an upfront payment of CHF 70 million and is eligible for double-digit royalties on sales, according to a Basilea statement. In addition, it could also receive up to USD 427 million in milestone payments.
The agreement, which applies to Europe, Russia, Turkey and Israel, permits Pfizer to commercialise Cresemba (isavuconazole) for the treatment of adult patients with serious and life-threatening fungal infections.
“The transaction will provide Basilea with additional financial flexibility to pursue targeted transactions to strengthen our two portfolio pillars focused on overcoming resistance: anti-infectives and oncology. Basilea continues to demonstrate its ability to complete innovative transactions that optimise the value of our company for shareholders,” said Ronald Scott, CEO of Basilea.
The drug is marketed in the US by Basilea’s license partner Astellas Pharma US. The latest agreement means that Basilea has now established partnerships for Cresemba in most of the key markets in the world, said David Veitch, Chief Commercial Officer at the Basel-based company.
According to Veitch, Basilea will now concentrate on the commercialisation of another drug. “With regards to our antibiotic Zevtera, we will focus on exploring partnering opportunities in Europe and on initiating within the next few months the phase 3 clnical studies required for a registration in the US.”