Basilea Holding AG released statements Friday indicating that its development partner American health-care goliath Johnson & Johnson, relinquished rights its drug ceftobiprole after it was rejected by European authorities.
Ceftobiprole, which is designed to wipe out methicillin-resistant staphylococcus, often the cause of hospital infections and death, has prompted several disputes between the two partners. European regulators paused the approval of ceftobiprole in order to determine whether the testing, performed by J&J was adequate. At this point, the pharmaceutical company determined that they no longer wished to be involved in the products approval and distribution and waved their rights over to Basilea .
Basilea, withheld financial details of the transaction but said a one-year transition would be in effect when Johnson & Johnson would be required to fulfill its obligations.
Johnson & Johnson confirmed that it no longer had ownership over ceftobiprole but like Basilea, did not disclose financial details.
In the hours following the announcement, stock of Basilea gained 9.1 percent to reach $67.56 on the Zurich Stock Exchange.
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