Bristol-Myers Squibb has entered into a three-year collaboration agreement with Reckitt Benckiser Group for several of its OTC medicines currently sold in Latin America, primarily in Mexico and Brazil.
Bristol-Myers Squibb will receive an upfront payment of $438 million for the exclusive rights to sell, distribute and market the products for a three-year period. They include: Picot, an antacid, Tempra, a pain reliever and fever reducer, Micostatin, an antifungal, Graneodin, a cough and cold medicine, Dermodex, an anti-rash cream, Luftal, an anti-gas medicine, and Naldecon, a cold and flu symptoms treatment.
During the collaboration, BMS will retain responsibility for manufacturing all of the products (or use contract third party manufacturers), and Reckitt Benckiser will purchase products from BMS and pay royalties on product sales. BMS will also receive an option fee of $44 million for the right to purchase these products at the end of the three-year term.
“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.”