BioGaia, a Swedish biotechnology company and Nestlé have signed agreements to extend
the collaboration in the field of infant nutrition products.
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 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.
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 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.
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