Bigmar signs $6.9 million agreement with Baxter

Bigmar, a USA-based manufacturer of generic oncology products andparental solutions, says that its wholly-owned subsidiary Bioren SA, headquartered in Couvet, Switzerland, has completed a distribution agreement with Baxter's Swiss subsidiary. The deal, which will bring in payments of just under $6.9 million to Bioren, gives Baxter exclusive rights to market the former's standard intravenous solutions products throughout Switzerland and Liechtenstein for a minimum of five years.

Under the terms of the agreement, Bioren will continue to manufacture premix solutions for Baxter, and the latter firm is obliged to purchase a minimum of 10 million units of product over the next four years. The companies noted that, based on the average price of a unit, it is expected this will bring some $18.8 million in revenue to Bioren. In addition, Baxter will provide regulatory support for the products over the five-year period of the agreement, which will give the firm first-refusal rights for other geographic distribution areas.

Bioren has a 60% market share in Switzerland for its IV infusion solutions. The company was founded in 1995, and also has US manufacturing facilities in Johnstown, Ohio, and an administrative base in Saginaw, Michigan.