SLOUGH (dpa-AFX) - Biopharmaceutical company Bristol-Myers Squibb Co. (BMY) has reached a three-year collaboration agreement with Reckitt Benckiser Group plc (RB.L, RBGPF.PK) for several of its over-the-counter medicines currently sold across Latin America, mainly in Mexico and Brazil.
Pursuant to the agreement, Reckitt would pay an upfront payment of $438 million to Bristol-Myers for the exclusive rights to sell, distribute and market the following medicines for a three-year period: Picot, an antacid, Tempra, a pain reliever and fever reducer, Micostatin, an antifungal, and Graneodin, a cough and cold medicine, sold chiefly in Mexico; and Dermodex, an anti-rash cream, Luftal, an anti-gas medicine, and Naldecon, a cold and flu symptoms treatment, sold primarily in Brazil.
During the collaboration term, Bristol-Myers would retain responsibility for manufacturing all of the products covered by the collaboration, and Reckitt Benckiser would buy products from Bristol-Myers and pay royalties on product sales in the term of the collaboration.
Also, Reckitt Benckiser would pay Bristol-Myers an option fee of $44 million for the right to buy these products outright at the end of the three-year term, acquiring the sales, marketing, and distribution rights, along with assets related to the products, including the trademarks, remaining inventories, and certain other assets.
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