Bristol-Myers Squibb enters $482-mn Latin American deal with Reckitt Benckiser

Bristol-Myers Squibb today agreed to give the exclusive rights to sell a number of top-selling non-prescription drugs in Brazil, Mexico and other parts of Latin America to Anglo-Dutch household products and drugs group Reckitt Benckiser, for $482 million.

Early this month The Wall Street Journal had reported that Bristol-Myers Squibb is seeking a buyer for some of its brands in Mexico and Brazil in a deal that may fetch the New York-based drug giant around $750 million. (See: Bristol-Myers Squibb may sell some brands in Mexico, Brazil: report)

Under the terms of the deal, Reckitt Benckiser will pay Bristol-Myers Squibb an upfront payment in the amount of $438 million for the exclusive three-year rights to sell, distribute and market Picot, an antacid, Tempra, a pain reliever and fever reducer, Micostatin, an antifungal, and Graneodin, a cough and cold medicine, sold primarily in Mexico; and Dermodex, an anti-rash cream, Luftal, an anti-gas medicine, and Naldecon, a cold and flu symptoms treatment, sold primarily in Brazil.

These products generated net revenue of $102 million for 2012.

During the collaboration period, Bristol-Myers Squibb will manufacture all of the products and Reckitt Benckiser will purchase them and pay royalties on product sales during the term of the collaboration.

Reckitt Benckiser will also pay to Bristol-Myers Squibb a $44-million option fee for the right to purchase these OTC products outright at the end of the collaboration term, including the trademarks, remaining inventories, and certain other assets.