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BioGaia Extends Collaboration with Nestlé

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By: Sean Moloughney

Editor, Nutraceuticals World

Sweden-based BioGaia and Nestlé have extended an existing collaboration in the field of infant nutrition products. These agreements are of significant strategic value for BioGaia since they not only involve an extended close collaboration with Nestlé but also generate a greater financial freedom for BioGaia to further invest in its own brand, develop its own new products, research new indications and increase the distribution of products.

The agreements include the entry by Nestlé into a perpetual license to use BioGaia’s patented Lactobacillus reuteri in infant nutrition products for EUR 50.8 million. This amount will be paid over 5 years. In addition, Nestlé has entered into an option agreement with BioGaia to extend the use of L. Reuteri to other product areas.

Furthermore Nestlé and BioGaia are working on several other initiatives including the development of innovative products in the infant nutrition and other nutrition categories, the distribution of BioGaia-branded products in new markets and other initiatives for the mutual benefit of BioGaia and Nestlé.

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