GlaxoSmithKline gets global rights to Basilea's Toctino

UK pharma giant GlaxoSmithKline (LSE: GSK) says that its dermatology-focussed subsidiary Stiefel has entered into a worldwide agreement to acquire Toctino (alitretinoin) from Switzerland-based Basilea Pharmaceutica (SIX: BSLN).

Toctino is a once-daily oral retinoid and the only prescription medicine specifically approved for the treatment of severe chronic hand eczema unresponsive to potent topical steroids in adults. It is commercially available in 14 countries, approved in an additional 15 countries, and is in a Phase III trial in the US. In 2011, worldwide sales of Toctino were £22 million ($33.9 million).

Stiefel will pay Basilea an initial £146 million in cash, and will be eligible to make further payments of up to £50 million on Food and Drug Administration approval of the product in the USA and double-digit success payments on US net sales, beginning three years after launch of the product in that market.