BioGaia extends collaboration with Nestlé
(Thomson Reuters ONE) -
Since 2008, BioGaia and Nestlé have collaborated in the field of infant
nutrition products. The parties have now signed agreements to extend this
collaboration. These agreements are of significant strategic value for BioGaia
since they not only involve an extended close collaboration with Nestlé but also
generate a greater financial freedom for BioGaia to further invest in its own
brand, develop its own new products, research around new indications and
increase the distribution of BioGaia-branded products. The additional finance
also gives the board room to propose a generous dividend policy.
The agreements include the entry by Nestlé into a perpetual licence to use
BioGaia's patented Lactobacillus reuteri in infant nutrition products for EUR
50.8 million. This amount will be paid over 5 years including an initial payment
paid and accounted for in the first quarter of 2012 of EUR 40 million and
additional payments of EUR 10.8 million, which will be paid and accounted for on
achievement of certain milestones. In addition Nestlé has entered into an option
agreement with BioGaia to extend the use of L. Reuteri to other product areas.
Furthermore Nestlé and BioGaia are working on several other initiatives
including the development of innovative products in the infant nutrition and
other nutrition categories, the distribution of BioGaia-branded products in new
markets and other initiatives for the mutual benefit of BioGaia and Nestlé.
These further developments will be announced at the appropriate time closer to
launch.
As a result of the upfront payments for the acquisition of the licence, BioGaia
estimates that revenue from Nestlé during 2012, excluding the up-front payment,
will be some 50% of the value of sales during 2011 increasing in 2013 to close
to the 2011 level. From 2014 forward, sales are expected to exceed those in
2011.
"The collaboration with Nestlé has developed into a close partnership and we are
very happy to be able to offer Nestlé solutions which are unique and effective.
We look forward to developing the collaboration further. In addition, the
acquisition of the licenced rights as such constitutes a very attractive deal
for BioGaia now that we through the new agreement have secured income that
otherwise would not have been guaranteed under the original contract. The other
initiatives with Nestlé may also open new business opportunities with other
customers in different fields and also increase the distribution of BioGaia-
branded products." says Peter Rothschild, President, BioGaia AB.
For additional information please contact
Peter Rothschild, President, BioGaia: +46 8 555 293 00 or +46 70 830 65 40
Urban Strindlöv, Vice President, BioGaia: +46 8 555 293 00 or +46 709 510151
BioGaia has published this information in accordance with the Swedish Securities
Market Act. The information was issued for publication on 15 February
2012, 8:00 am CET.
BioGaia is a biotechnology company that develops, markets and sells probiotic
products
with documented health benefits. The products are primarily based on the lactic
acid
bacterium Lactobacillus reuteri which has probiotic, health-enhancing effects.
The class B share of the Parent Company BioGaia AB is quoted on the Mid Cap list
of the NASDAQ OMX Nordic Exchange Stockholm.
www.biogaia.com
Press release February 15, 2012:
http://hugin.info/86913/R/1585786/496728.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: BioGaia AB via Thomson Reuters ONE
[HUG#1585786]
Unternehmensinformation / Kurzprofil:
Datum: 15.02.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 114799
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contact information:
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Kategorie:
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"BioGaia extends collaboration with Nestlé"
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