Bristol-Myers Squibb enters collaboration with Reckitt Bencksier

Bristol-Myers Squibb has reached an agreement with Reckitt Bencksier for several of its over-the-counter medicines.

As part of the agreement, Reckitt Benckiser will pay Bristol-Myers Squibb $438 million (£282 million) upfront for the exclusive rights to sell, distribute and market a number of medicines for three years.

These medicines include Picot, Tempra, Micostatin, Graneodin, Dermodex, Luftal and Naldecon.

The terms will see Bristol-Myers Squibb retain responsibility for manufacturing all of the products covered by the collaboration, while Reckitt Benckiser will buy products from Bristol-Myers Squibb and pay royalties on product sales.

Reckitt Benckiser will also pay an option fee of $44 million to Bristol-Myers Squibb for the right to purchase products outright at the end of the three-year term, which will see the business acquire sales, marketing and distribution rights.

Following this, Reckitt Benckiser would assume all responsibility for products, with the purchase price being based on average net sales during the two year period preceding the close of the sale.

Charles Bancroft, executive vice president, Intercontinental Region and Japan, and chief financial officer of Bristol-Myers Squibb, said: " 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.

"This agreement allows us to increase our focus on the launch and commercialization of our innovative portfolio in these important markets in Latin America."

Recently, Bristol-Myers Squibb's ELIQUIS drug was approved by the Japanese Ministry of Health Labour and Welfare.

The solution is used to stop ischemic stroke and systemic embolism in patients with nonvalvular atrial fibrillation (NVAF) and has shown risk reductions when compared with warfarin in clinical laboratory work.

This latest approval is the drug's third, after previously receiving consent in the European Union and Canada. It was developed as part of a collaboration between Bristol-Myers Squibb and Pfizer.