BioGaia enters new agreement with Nestlé

13-Mar-2014 - Sweden

In February 2012 BioGaia sold the rights for the use of Lactobacillus reuteri Protectis in infant formula to Nestle for the remainder of the patent lifetime. BioGaia received EUR 40 million up-front and a commitment to a further EUR 10.8 million during the period 2014 to 2017 upon achievement of certain milestones. The first milestone payment of EUR 3.6 million was received in February this year.

Nestlé and BioGaia wish to broaden and strengthen the cooperation and have therefore entered into a supplementary agreement to the original from February 2012.

The agreement will provide BioGaia with royalties of around SEK 92 million (approximately EUR 10.4 million) over a three-year period, starting during the second quarter of 2014, for which BioGaia will carry out specific clinical studies in the paediatric area. In addition BioGaia will develop new products for Nestlé in new areas. The development will include both pre-clinical and clinical studies as well as product development. If the development is successful, these products will be produced by BioGaia and sold to Nestlé.

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