BioGaia's Reuteri - the deals keep coming

By staff reporter

- Last updated on GMT

Related tags: Probiotic, Sales

The momentum behind the roll out of BioGaia's Reuteri to
international markets shows no sign of slowing, with the
announcement of a new agreement with Ferring Pharmaceuticals to
sell the drops in Spain, Portugal, Czech Republic and Hungary.

The latest announcement comes just one day after the company revealed a deal with Forest Pharmaceuticals for the UK and Ireland, which managing director Peter Rothschild said has the potential to be one of the most important market for the probiotic drops.

Reuteri drops will be sold in Ferring's markets under BioGaia's own brand, and Ferring also has the option to introduce them in several other, as yet undisclosed, countries at a later date.

The drops will be aimed at helping improve intestinal health in infants, especially in those affected by colic.

Last September results of a study investigating the effects of probiotic bacteria drops on the symptoms of colic in breast-feeding infants were presented at the European Society for Paediatric Research Meeting in Siena, Italy. These results are thought to have boosted interest in Reuteri around the world.

In some countries Reuteri has to be approved by the authorities before it can go on sale, and the process for obtaining this is being initiated immediately. Deputy managing director Jan Annwall told that the company expects this to be "an easy procedure"​.

For Ferring, Reuteri will sit comfortably alongside existing products in the paediatric market. "It will fit very well with one of our most important brands, MINIRIN Melt, which is in the process of being launched throughout Europe,"​ said COO Michael Pettigrew.

In full year 2005 BioGaia reported operating result was -SEK20.7m (€2.2m), compared to -SEK28.8m (€3.07m) in full year 2004, and net sales increased by an impressive 47 per cent to SEK59.6m (€6.35m).

Although it has not yet crossed over into profitability, the flurry of deals has contributing to better results over the past 18 months, indicating that profitability may not be far off.

With a sales force of ten working on new distribution agreements, further announcements are expected to be forthcoming.

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