Basilea Pharmaceutica Ltd. announced that it has entered into an asset purchase agreement and a sub-license agreement with SillaJen Inc. for Basilea's novel kinase inhibitor, BAL0891, a potential first-in-class mitotic checkpoint inhibitor, that drives aberrant tumor cell division leading to tumor cell death. Basilea in-licensed BAL0891 in 2018 from the Dutch precision medicine company NTRC. Under the asset purchase agreement Basilea is selling its intellectual property rights generated under the license and collaboration agreement with NTRC.
In addition, Basilea is sub-licensing its rights and obligations under the license and collaboration agreement with NTRC to SillaJen. Under the terms of the agreement, Basilea will receive upfront and near-term milestone payments of USD 14 million. Basilea is also eligible to receive further payments of up to approximately USD 320 million upon the achievement of predefined development, regulatory and sales milestones and tiered royalties on net sales starting in the single digit range going up to double-digits.
Basilea remains responsible for making milestone and royalty payments to NTRC according to the license and collaboration agreement with NTRC. In February this year Basilea announced its intention to focus on becoming a leading anti-infectives company and therefore to separate its oncology assets. Basilea has already made significant progress in the implementation of the new strategy and expects no material expenses related to oncology activities beyond 2022.
Basilea is on track to achieve sustainable profitability from 2023.