Probi, Danone Sign Exclusive Licensing Agreements

LUND, SwedenProbi and Danone announced an exclusive 10-year licensing agreement that gives Danone exclusive rights to use Probis Lp299v technology in probiotic fruit drinks and fruit juices for digestive health outside North America. Danone also signed an agreement to acquire 51 percent of ProViva AB from Skånemejerier. Both deals are expected to close before the end of the year.

Under the terms of the deals, Danone will continue to grow ProViva in Sweden and have an option to build an international business based on the Swedish success story. Probis royalty will be at competitive levels for the duration of the agreements.

Probi will receive a down payment from Skånemejerier before the end of the year as compensation for rights granted by Probi and Probi has the opportunity to receive a further milestone payment from Skånemejerier subject to regulatory approvals of health claims.

This is a long-term collaboration with Danone that will secure revenues from our existing Swedish franchise and establish a potential for international growth. Danone is one of the most successful healthy food companies in the world and is better placed than anyone else to replicate the success of ProViva in Sweden in other parts of the world, said Probi CEO Michael Oredsson. We are also pleased that Danone has agreed to cooperate with Probi in the area of health claims and regulatory approvals