The deal, with PT Kalbe Farma Tbk, is the latest in a flurry of international distribution deals this year, and a further signal that BioGaia is truly exploring potential markets for its products in all corners of the globe.
Delivery of the probiotic tablets containing BioGaia's Reuteri bacteria, to be sold under Kalbe Farma's brand, will take place at the beginning of next year. The oral products will be launched later in 2007 and be sold under BioGaia's own brand.
BioGaia president Peter Rothschild described Kalbe Pharma as "a dynamic company which focuses on innovative products". Its 2005 turnover was around €490m.
BioGaia has diversified into a number of new applications, moving away from the most established probiotic delivery form of tablets and dairy products.
Its probiotic bacteria drops have been tested for their effects on the symptoms of colic in breast-feeding infants with positive results. The dental products, containing a bacteria that is said to counter the effects of bad bacteria in the mouth, come in the form of lozenges and chewing gum.
Other current agreements in Asia are with Chichiyasu for the sale of Reuteri-containing dairy products in Japan; with Biolife in Malaysia for probiotic drops via pharmacies; and with Age d'or Health care in Singapore for Reuteri drops and tablets.
In its financial results for the first nine months of 2006, released at the end of October, BioGaia reported operating profits in the black - SEK1.2m (c €0.13m) compared to SEK-11.3m (€1.24m) at the same point last year.
Net sales were SEK62.1m (€6.8m), up 39 per cent from SEK44.7m (€4.9m) last year.
"With a largely stable cost level, increased sales to existing customers andadditional sales under new contracts, BioGaia's goal is to achieve a good long termreturn," said the company.
"In view of the Company's strong portfolio containing a number of innovativeproducts, successful clinical trials and growing distribution network covering alarge share of the key markets, BioGaia's future outlook is bright."