NEW YORK (GenomeWeb News) – Celera Corporation and Abbott announced today that they have revised their strategic alliance agreement, moving from a profit-sharing deal to new worldwide distribution and royalty agreements.
Under one of these agreements, Abbott will have the right to exclusively distribute certain Celera-manufactured molecular diagnostic products. A second agreement gives Celera royalties on sales of m2000 real-time PCR system reagents, instruments, services, and related consumables.
Celera and Abbott also plan to pay each other royalties on any new products developed for the m2000 instrument, with Abbott receiving royalties on specific Celera genetic tests. The companies also will no longer share R&D and SG&A expenses.
Celera CEO Kathy Ordonez said in a statement toady that the firm believes the latest move will provide greater financial clarity for its investors.
The distribution and royalty agreements, which are effective as of October 1, 2008, are replacing profit-sharing agreements between the companies that were established in June 2002 and re-stated in January 2006. The new pacts are intended to provide more development and commercialization flexibility for the companies, while maintaining the equal value sharing between them.
The new distribution agreement is set for an initial term of five years, followed by two potential two-year renewal periods. The royalty agreement, meanwhile, expires in September 2017. Additional financial terms of the agreements were not disclosed.