The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

J&J and Basilea to Arbitrate

In case you hadn’t heard, Basilea filed a claim for arbitration under their license agreement with J&J for the antibiotic ceftobiprole, based on the anticipated news, confirmed today, that the the EMEA has halted the EU Commission decision process on ceftobiprole pending EU led GCP inspections.

Brian Orelli has a nice post up on the wider ramifications of the mess that the industry will be in if the FDA has to scrutinize the reliability of every filing.

Wider ramifications aside, it is unusual to see a license and development agreement go to arbitration (as the WSJ Post points out, quoting Credit Suisse analyst Catherine Arnold). 

Based on the description in Basliea’s 2005 annual report (pdf), the agreement with J&J appears to have contained the usual joint committee structure for managing the development process; so it will be interesting to follow the story and see if we can learn any drafting lessons.

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