In February 2012, BioGaia sold the rights for the use of Lactobacillus reuteri Protectis in infant formula to Nestlé for the remainder of the patent lifetime.
BioGaia received €40m up-front and a commitment to a further €10.8m during the period 2014 to 2017 upon achievement of certain milestones. The first milestone payment of €3.6m was received in February 2014.
The agreement will provide BioGaia with royalties of around SEK 92m 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 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.
“We are of course very satisfied with this agreement, which gives us additional financial resources, improved profits and a great opportunity for us to develop a number of interesting products for Nestlé,” said Peter Rothschild, president BioGaia.
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