Basilea revises Toctino revenue guidance while expecting better operating result 2011

While significant volume growth of Toctino® is observed in all the European markets and Canada where the drug is marketed, the strength of the Swiss Franc versus the Euro and other currencies has had a significant impact on sales recognized in Swiss Francs. In addition, continued austerity measures in Europe are impacting Toctino® revenues. The company therefore revises its annual sales guidance for Toctino® from around CHF 40 million to CHF 32 - 34 million for the year 2011.

The strength of the Swiss Franc is positively impacting operating expenses in 2011 which are largely incurred in other currencies. Overall, Basilea improves its guidance on anticipated average operating loss in 2011 from CHF 8 million per month to approximately CHF 7 million per month.

"We continue to see significant volume growth of Toctino with strong contributions from established markets such as Germany. However, currency movements thus far have negatively impacted our recognized sales reported in Swiss Francs. Despite the clear recognition of the clinical benefit of Toctino by patients and physicians and the favorable pharmaco-economic assessment by national health organizations, national healthcare budget allocations and reimbursement for this innovative medicine in additional countries has been slower than anticipated," indicated Hans Christian Rohde, Chief Commercial Officer of Basilea Pharmaceutica Ltd. "We are actively addressing the changes in the healthcare environment by adapting our commercial approach. Toctino is a very effective drug addressing a high medical need and we continue to see the potential of this unique drug."

As previously announced, Basilea will report the detailed financial results for the first half-year on August 18, 2011.

Chronic hand eczema - a debilitating skin disease
Hand eczema is a common inflammatory skin disease and is often chronic and relapsing. Hand eczema is reported to affect up to ten percent of the general population. The more severe, chronic form of the condition is thought to affect five to seven percent of these patients, causing impaired use of their hands and a considerable impact on their ability to perform everyday activities.

Toctino® (alitretinoin) - the only therapy approved for severe chronic hand eczema (CHE) unresponsive to potent topical treatments
Toctino® was developed by Basilea Pharmaceutica International Ltd. and is approved in many European countries, Canada and Israel for the treatment of severe CHE. Since its launch it has been included in CHE treatment guidelines in Canada, France, Germany and Italy. The therapeutic value of Toctino® under daily practice conditions has been confirmed. For example the TOCCATA study, a 680-patient prospective non-interventional study run in Germany, reported high efficacy rates, excellent patient compliance and a safety profile consistent with the approved label.

Conference call
Basilea Pharmaceutica Ltd. invites you to participate in a conference call on Monday, June 20, 2011, 4 p.m. (CEST), during which the company will discuss today's press release.

Dial-in numbers are:
+41 (0) 91 610 56 00 (Europe and ROW) +1 (1) 866 291 4166 (USA) +44 (0) 203 059 5862 (UK)

Contact
Media Relations Peer Nils Schröder, Ph.D. Head Public Relations & Corporate Communications +41 61 606 1102 media_relations@basilea.com