Probi Signs a New Long-Term Agreement with Institut Rosell
The new agreement furthermore enables Probi to enter into direct distribution agreements or launch dietary supplements for gut health on its own in territories not covered by Institut Rosell’s exclusivity.
12/22/2010 --- After several years of positive cooperation, Probi and Rosell have agreed to continue the partnership by signing a new long-term agreement for a dietary supplement based on Probi’s strain Lp299v. The new agreement replaces the seven year old agreement with Institut Rosell which is the basis of approximately twenty percent of Probi’s turnover.
The new agreement has an initial term of seven years. It will secure Probi’s existing license revenues over a long term as well as secure supply of a high quality product at highly competitive pricing. The new agreement furthermore enables Probi to enter into direct distribution agreements or launch dietary supplements for gut health on its own in territories not covered by Institut Rosell’s exclusivity. The agreement is expected to have positive impact on Probi’s profit already in the second quarter of 2011.
"Dietary Supplements is our fastest growing business area and is very important to us. The new agreement with Institut Rosell secures existing revenues and will lead to higher revenue and increased profitability in markets where we already cooperate. At the same time, Probi will be able engage directly with distributors or launch Lp299v supplements direct to consumer in a number of key markets,” says Michael Oredsson, CEO of Probi.
The new agreement gives Institut Rosell the right to continue manufacturing capsules based on Probi’s strain Lp299v. Additionally, Institut Rosell retains exclusive license rights to existing markets France, Spain, Greece, Benelux, Canada, large parts of South America and some distribution channels in USA.
The most important benefits for Probi are:
• Secures existing license revenues over a long term
• Probi’s product margins will be improved
• Supply of a high quality product at competitive pricing is secured
• Probi has gained the rights to launch Lp299v supplements in China, India and South Africa on a non-exclusive basis
