Basilea Pharmaceutica China Ltd.

Basilea Pharmaceutica China Ltd. (hereafter “Basilea China”) is a wholly owned subsidiary of Basilea Pharmaceutica Ltd. Basilea China closely collaborates with the chemistry and analytics groups in Basel. Basilea China focuses on organic chemistry and analytics to support drug discovery research, drug supply chain activities, and clinical development programs.

At year-end, Basilea China employed 88 people including 68 professional chemists. Basilea China is the first drug research company in China entirely funded by foreign investment, and one of the first foreign invested research institutes authorized by the Government of the Jiangsu Province. In recognition of its sustaining operational excellence Basilea China was again awarded the Chinese High-Tech Enterprise status in 2006 and was granted the “A” class of safety operation by the local government in 2007.

The high quality of operations at Basilea China was confirmed by successfully passing again the British Standards Institute (BSI) ISO9001 audit in 2007.

Basilea China participates actively in the search of new lead compounds of natural origin via the network in traditional Chinese medicine research institutes as well as of development product opportunities in China.

Worldwide Subsidiaries

Basilea established additional subsidiaries in Canada, Denmark, France, Germany, Italy, Spain, the United Kingdom and the United States of America to potentially commercialize its late-stage development products ceftobiprole, alitretinoin and isavuconazole. Pending regulatory approval, the initial launches of ceftobiprole and alitretinoin are anticipated in 2008. Ceftobiprole is planned for introduction initially into the US, Switzerland and European countries, and alitretinoin initially into selected EU countries and Switzerland followed later by Canada.