Paladin Labs acquires Binotal rights in Latin America from Bayer

Canadian specialty pharma firm Paladin Labs (TSX: PLB) has signed an agreement with German drug major Bayer (BAYN: DE) to acquire marketing rights to Binotal (ampicillin trihydrate) for Latin America including Mexico, Brazil, Columbia, Ecuador and select countries in Central America. Bayer will be providing certain distribution support services for an interim period.

Binotal has been sold in the region for over 40 years. It has a strong market position for the systemic treatment of bacterial infections at a wide variety of sites with varying severity. In 2012, Binotal recorded sales of over C$11 million ($10.4 million) in Latin America with Mexico and Brazil representing over two-thirds of the sales. Financial details related to the agreement were not disclosed.

"Binotal is a proven product with a long history of efficacy and safety in improving the lives of people suffering from bacterial infections," said Mark Beaudet, interim president and chief executive of Paladin, adding: "The product has strong brand recognition and strategically ties-in with our desire to grow our business in Latin America. Added to our existing product portfolio, Binotal will provide additional critical mass and strategic options for further developing our operations in Latin America."