SUBSCRIBE

Breaking News on Supplements, Health & Nutrition - Europe US edition | APAC edition

News > Suppliers

Read more breaking news

 

 

BioGaia confirms extended agreement with Nestlé for clinical research and NPD

By Nathan Gray+

13-Mar-2014

Nestlé extend BioGaia deal to include research and product development

Swedish probiotic player BioGaia has broadened and strengthened its ties with food manufacturing giant Nestlé by agreeing a deal for clinical research and new product development (NPD), according to the firm.

The move comes approximately two years after BioGaia sold the rights for the use of Lactobacillus reuteri Protectis in infant formula to Nestle for the remainder of the patent lifetime.

However, the two companies have now entered in to a new 'supplementary agreement' which will involve the provision and development of pre-clinical and clinical studies in addition to new product development for Nestlé.

“We are of course very satisfied with this agreement, which gives us additional financial resources, improved profits and a great opportunity for us to develop a number of interesting products for Nestlé," said BioGaia president Peter Rothschild.

If the development is successful, these products will be produced by BioGaia and sold to Nestlé, BioGaia added.

Existing deal

As part of the original deal, signed in February 2012, BioGaia received €40 million up-front and a commitment to a further €10.8 million during the period 2014 to 2017 - upon achievement of certain milestones.

BioGaia confirmed that the first milestone payment of €3.6 million was received in February this year.

The new agreement will provide BioGaia with further royalties of around SEK 92 million (approximately €10.4 million) over a three-year period, starting during the second quarter of 2014. As part of the deal BioGaia will carry out specific clinical studies in the paediatric area, the firm said.

Furthermore, the agreement means that BioGaia will immediately receive the remaining milestone payments totalling €7.2 million from the 2012 agreement.

These payments as well as the milestone payment already received will be entered as income for the current quarter, said BioGaia - adding that the new agreement will have a positive effect on profits during the whole three-year period.

Beyond the short term profit boost, there will also be an eventual income from sales of future products, the firm added.

Related products

Live Supplier Webinars

Polyphenols tipped to become the way to innovate in Sports Nutrition
Fytexia
Alpha & Omega in Sports Nutrition – Using Omega 3’s and A-GPC to improve performance and recovery.
KD Pharma
Orally bioavailable standardized botanical derivatives in sport nutrition: special focus on recovery in post-intense physical activities
Indena
Collagen in motion: move freely and keep your injuries in check
Leading manufacturer of gelatine and collagen peptides
Life’s too short for slow proteins. Whey proteins hydrolysates: Fast delivery for enhanced performance
Arla Foods Ingredients
What it Takes to Compete and Win in Today’s Sports Nutrition Market
Capsugel
Sports Nutrition Snapshot: Key regional drivers and delivery format innovations
William Reed Business Media
Gutsy performance: How can microbiome modulation help athletes and weekend warriors
William Reed Business Media
Pushing the boundaries: Where’s the line between ‘cutting edge nutrition’ and doping
William Reed Business Media

On demand Supplier Webinars

High-amylose maize starch may reduce the risk of type 2 diabetes: what does this qualified health claim mean?
Ingredion
Balancing Innovation and Risk in Sports Nutrition Ingredients
NSF-International
Explaining bio-hacking: is there a marketing opportunity for food companies?
William Reed Business Media
Personalized Nutrition – how an industry can take part in shaping the future of Nutrition
BASF Nutrition & Health
Find out Nutritional and ingredient lifecycle solutions and strategies!
Roquette
Is the time rIpe for I-nutrition?
William Reed Business Media
The Advantage of Outsourcing Fermentation-based Manufacturing Processes
Evonik Health Care
All supplier webinars