Press Release: Basilea announces divestment of its Chinese R&D subsidiary to PHT International

Basel, Switzerland, February 15, 2021

Basilea Pharmaceutica Ltd. (SIX: BSLN) announced today that it has

entered into an agreement to divest its Chinese research and development

(R&D) subsidiary Basilea Pharmaceutica China Ltd. ("BPC"), by selling

BPC's parent company BPh Investitionen Ltd. to the U.S.-based custom

manufacturing organization PHT International Inc. ("PHT"). This will

increase flexibility in sourcing R&D services in the future. All 72

employees and the facilities will be transferred to PHT. The initial

payment is USD 2.5 million, which will be due upon closing of the

transaction, which is expected in the second quarter of 2021 subject to

customary closing conditions. Basilea is entitled to additional payments

of USD 3.8 million over the course of the next three years, for a total

purchase price of USD 6.3 million.

David Veitch, Chief Executive Officer of Basilea, said: "We are very

pleased with this transaction, which will increase our flexibility in

sourcing external R&D services for our growing portfolio, while

optimizing our future cost structure. Importantly, PHT has committed to

maintaining R&D services through the existing site in China to Basilea.

This ensures continued seamless support for our ongoing R&D projects and

allows us to continue to benefit from the expertise that we have built

in our Chinese organization over the course of the last two decades."

Dr. Laurenz Kellenberger, Basilea's Chief Scientific Officer and

Chairman of BPC, added: "Since we founded BPC in 2002, our Chinese

colleagues have been a great support for our R&D projects and I would

like to thank them for their valuable contributions. We are convinced

that their expertise will be even better leveraged within a structure

that is entirely focused on providing contract research, development and

manufacturing services such as PHT. We wish them all the best for the

future and are looking forward to continue working with them on our

projects."

PHT International Inc. is a privately owned custom manufacturing

organization for chemicals for the pharmaceutical industry and other

sectors. PHT was founded in 1993 and is headquartered in Charlotte,

North Carolina, USA. PHT has five locations in China.

About Basilea

Basilea Pharmaceutica Ltd. is a commercial-stage biopharmaceutical

company, focused on the development of products that address the medical

challenges in the therapeutic areas of oncology and infectious diseases.

With two commercialized drugs, the company is committed to discovering,

developing and commercializing innovative pharmaceutical products to

meet the medical needs of patients with serious and life-threatening

conditions. Basilea Pharmaceutica Ltd. is headquartered in Basel,

Switzerland and listed on the SIX Swiss Exchange (SIX: BSLN). Additional

information can be found at Basilea's website www.basilea.com.

About Basilea Pharmaceutica China

Basilea Pharmaceutica China Ltd. (BPC) was founded in 2002 and is

located in the Haimen Economic-Technological Development Zone of Nantong

city, Jiangsu, a ninety minutes' drive from Shanghai. Operating in an

innovative R&D environment, the company builds on its highly qualified,

well-trained and experienced professionals as well as a state-of-the-art

scientific and technical infrastructure. BPC focuses on the chemical

synthesis and analysis of complex molecules, analytical development and

process research and development, so as to provide R&D services to

worldwide customers.

Disclaimer

This communication expressly or implicitly contains certain

forward-looking statements, such as "believe", "assume", "expect",

"forecast", "project", "may", "could", "might", "will" or similar

expressions concerning Basilea Pharmaceutica Ltd. and its business,

including with respect to the progress, timing and completion of

research, development and clinical studies for product candidates. Such

statements involve certain known and unknown risks, uncertainties and

other factors, which could cause the actual results, financial condition,

performance or achievements of Basilea Pharmaceutica Ltd. to be

materially different from any future results, performance or

achievements expressed or implied by such forward-looking statements.

Basilea Pharmaceutica Ltd. is providing this communication as of this

date and does not undertake to update any forward-looking statements

contained herein as a result of new information, future events or

otherwise.

For further information, please contact:

Peer Nils Schröder, PhD

Head of Corporate Communications & Investor Relations

Phone +41 61 606 1102

E-mail media_relations@basilea.com

investor_relations@basilea.com

This press release can be downloaded from www.basilea.com.

Attachment

Press release (PDF)

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February 15, 2021 01:15 ET (06:15 GMT)