Ortho-McNeil and Basilea could partner on a broad-spectrum Phase III cephalosporin antibiotic, ceftobiprole (BAL5788).

The companies are in negotiations on the potential licensing deal, but Basilea emphasized that it has held similar discussions "with a number of potential partners."

Basilea, which was spun off by Roche in October 2000, said that it had enough cash from its IPO to develop and register ceftobiprole independently, but that a partnership would further increase the value of the compound to its shareholders.

The negotiations were disclosed by Basilea in an announcement that the Federal Trade Commission had granted early termination of the Hart-Scott-Rodino waiting period following a notification and report filed by the two companies. Basilea noted that the FTC's approval was required in anticipation of a potential transaction.

The company launched 700-patient Phase III trials in November studying ceftobiprole in the treatment of complicated skin and skin structure infections.

Ceftobiprole was designed to bind to mutated targets in methicillin-resistant Staphylococcus aureaus. Additional studies are planned in other severe infection indications as well as in the ongoing skin/skin structure infections study versus vancomycin.

Ceftobiprole has achieved fast-track status for CSSIs due to MRSA and for hospital-acquired pneumonia due to MRSA.

The company describes the agent as "the first of a new generation" of anti-methicillin-resistant S. aureaus cephalosporins that will "combine the well-established advantages of the cephalosporin antibiotic class with an enhanced gram-positive antibacterial spectrum."

J&amp;J, Basilea May Strike Deal On Phase III Antibiotic; FTC Pre-Approves

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J&J, Basilea May Strike Deal On Phase III Antibiotic; FTC Pre-Approves