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NEW YORK — Bristol-Myers Squibb Co. has entered a collaboration pact with Reckitt Benckiser Group for several over-the-counter medicines sold in Latin America.
Bristol-Myers said Tuesday that under the three-year deal, it will receive an upfront payment of $438 million from Reckitt Benckiser for the exclusive rights to sell, distribute and market the medicines Picot (antacid), Tempra (pain reliever and fever reducer), Micostatin (antifungal) and Graneodin (cough and cold), which are sold mainly in Mexico, as well as Dermodex (anti-rash cream), Luftal (anti-gas) and Naldecon (cold and flu symptoms), which are sold primarily in Brazil.
During the term of the agreement, Bristol-Myers will retain responsibility for manufacturing all of the products covered — either by itself or through third-party manufacturers — and Reckitt Benckiser will buy products from Bristol-Myers and pay royalties on product sales over the course of the deal.
"As part of our BioPharma strategy, Bristol-Myers Squibb has worked to focus its businesses around the world on innovative medicines in areas of high unmet medical need," stated Charles Bancroft, executive vice president for the intercontinental region and Japan and chief financial officer at Bristol-Myers. "This agreement allows us to increase our focus on the launch and commercialization of our innovative portfolio in these important markets in Latin America."
Plans also call for Reckitt Benckiser to pay to Bristol-Myers an option fee of $44 million for the right to acquire the products at the end of the three-year term, including the sales, marketing and distribution rights plus assets related to the products, such as the trademarks, remaining inventories and certain other assets. Subject to certain rights it has to extend the term of the supply agreement with Bristol-Myers, Reckitt Benckiser would then assume all responsibility for the products, Bristol-Myers said.
