Probi receives 10 million SEK down payment from Skånemejerier as the agreements with Danone close
Probi receives a down payment of 10 million SEK from Skånemejerier as the agreements with Danone closed late yesterday. The payment will be made during the fourth quarter and the entire amount will have a positive effect on Probi’s 2010 accounts. In addition to this, Probi has the opportunity to receive a larger down payment from Skånemejerier subject to approval of a health claim for Probi’s probiotic strain Lp299v in Europe.
”The down payment is the first milestone in Probi’s most important agreements to date. The agreements have secured competitive royalty proceeds from ProViva in Sweden over the next ten years. In addition, Probi has an opportunity to earn royalties from the international roll out of the products. Probi’s international revenue potential from ProViva is significantly higher than the revenue from ProViva in Sweden” says Michael Oredsson, CEO of Probi.
“Probi and Danone have a common interest in making ProViva an international success and we are already cooperating on the health claim application for Lp299v, the probiotic strain in ProViva.”
In July, Probi and Danone signed exclusive license agreements. These agreements now formally close as Danone acquires 51 per cent of the shares in ProViva AB from Probi’s partner Skånemejerier. Skånemejerier continues to own the remaining 49 per cent. ProViva AB has a competitive organisation in place. Probi will have an observer at the Board of ProViva AB.
For more information, please contact:
Michael Oredsson, CEO Probi, phone: +46 46 286 89 23, mobile: +46 707 18 89 30,
Probi is a leading player in the probiotic research and the development of efficient and well-documented probiotics.
The research areas include: gastrointestinal tracts, immune system, metabolic syndrome and stress and recovery. Probi’s customers are leading companies in the functional foods and dietary supplement business areas. Total income for 2009 was MSEK 65.5, of which the majority represented royalties. Probi’s share is listed on the Nasdaq OMX Stockholm, Small Cap. Probi has approximately 4,500 shareholders. For more information, please visit www.probi.com.