Bristol-Myers Squibb enters a collaboration agreement with Reckitt Benckiser Group plc

Bristol-Myers SquibbBristol-Myers Squibb Company (NYSE: BMY) today announced it has entered into a three-year collaboration agreement with Reckitt Benckiser Group plc (LSE: RBL) for several of its over-the-counter medicines currently sold across Latin America, primarily in Mexico and Brazil.

Under the terms of the collaboration agreement, Reckitt Benckiser will pay Bristol-Myers Squibb an upfront payment in the amount of $438 million 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 primarily 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.

"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," said Charles Bancroft, executive vice president, Intercontinental Region and Japan, and chief financial officer. "This agreement allows us to increase our focus on the launch and commercialization of our innovative portfolio in these important markets in Latin America."

During the collaboration term, Bristol-Myers Squibb will retain responsibility for manufacturing all of the products covered by the collaboration (either by itself or through third party manufacturers), and Reckitt Benckiser will purchase products from Bristol-Myers Squibb and pay royalties on product sales during the term of the collaboration.

Reckitt Benckiser will also pay to Bristol-Myers Squibb an option fee in the amount of $44 million for the right to purchase 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. Subject to certain rights it has to extend the term of the supply agreement with Bristol-Myers Squibb, Reckitt Benckiser would then assume all responsibility for the products. The purchase price will be based on average net sales during the two year period preceding the closing of the sale. No manufacturing facilities will be transferred from Bristol-Myers Squibb to Reckitt Benckiser Group plc as part of this transaction.

The transaction is subject to the satisfaction or waiver of customary closing conditions, including competition law authorizations in Brazil and Mexico.

Jefferies Group, Inc. acted as exclusive financial advisor to Bristol-Myers Squibb, and Kirkland & Ellis LLP acted as its legal adviser.

About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases.

Most Popular Now

NextPoint Therapeutics announces $80 million Serie…

NextPoint Therapeutics, a biotechnology company developing a new world of precision immuno-oncology, announced today that it raised $80 million in Series B financing co-l...

AstraZeneca to acquire CinCor Pharma to strengthen…

AstraZeneca has entered into a definitive agreement to acquire CinCor Pharma, Inc. (CinCor), a US-based clinical-stage biopharmaceutical company, focused on developing no...

Time-restricted eating reshapes gene expression th…

Numerous studies have shown health benefits of time-restricted eating including increase in life span in laboratory studies, making practices like intermittent fasting a ...

Incurable liver disease may prove curable

Research led by Associate Professor Duc Dong, Ph.D., has shown for the first time that the effects of Alagille syndrome, an incurable genetic disorder that affects the li...

Scientists develop a cancer vaccine to simultaneou…

Scientists are harnessing a new way to turn cancer cells into potent, anti-cancer agents. In the latest work from the lab of Khalid Shah, MS, PhD, at Brigham and Women’s ...

Bayer to accelerate drug discovery with Google Clo…

Bayer AG and Google Cloud announced a collaboration to drive early drug discovery that will apply Google Cloud's Tensor Processing Units (TPUs), which are custom-develope...

Acquisition of Neogene Therapeutics completed

AstraZeneca has completed the acquisition of Neogene Therapeutics Inc. (Neogene), a global clinical-stage biotechnology company pioneering the discovery, development and ...

Study identifies potential new approach for treati…

Targeting iron metabolism in immune system cells may offer a new approach for treating systemic lupus erythematosus (SLE) - the most common form of the chronic autoimmune...

Nanotechnology may improve gene therapy for blindn…

Using nanotechnology that enabled mRNA-based COVID-19 vaccines, a new approach to gene therapy may improve how physicians treat inherited forms of blindness. A collabo...

Modified CRISPR-based enzymes improve the prospect…

Many genetic diseases are caused by diverse mutations spread across an entire gene, and designing genome editing approaches for each patient’s mutation would be impractic...

Pfizer expands 'An Accord for a Healthier World' p…

Pfizer Inc. (NYSE: PFE) announced that it has significantly expanded its commitment to An Accord for a Healthier World to offer the full portfolio of medicines and vaccin...

500,000 missed out on blood pressure lowering drug…

Nearly half a million people missed out on starting medication to lower their blood pressure during the COVID-19 pandemic, according to research supported by the British ...