Bristol-Myers Squibb to Buy Stake in French Drug Firm

Moving to broaden its business base in Europe, Bristol-Myers Squibb Co. has entered agreements to acquire a minority stake in UPSA Group and to develop the French company’s non-prescription drug operations worldwide, the companies announced Friday.

Bristol-Myers Squibb would have the opportunity to acquire the remaining shares of UPSA over the longer term under the agreements. Initially, an investment of an undisclosed amount of cash will give Bristol-Myers Squibb 33.56% of UPSA.

The agreements must be approved by French government authorities, which is expected, a Bristol-Myers Squibb spokesman said.

Currently, Bristol-Myers has a very small presence in the European market for non-prescription drugs.

“This will play a central role in plans to develop our existing over-the-counter pharmaceutical business throughout Europe,” said Bristol-Myers spokesman Jerry Parrott.

Based in Agen, France, UPSA is the largest privately held non-prescription drug company in Europe.

It ranks second in the European market for over-the-counter analgesics and is the market leader in France, holding about 30% of that country’s market for the pain relievers, according to industry estimates. UPSA also is strong in Belgium and Spain and has been building its presence in Italy.

One of UPSA’s strengths is effervescent technology. Effervescent pain relievers, which typically come as powders or tablets and become fizzy when liquid is added, are popular products in Europe. Bristol-Myers Squibb currently lacks effervescent technology.

It is expected that Bristol-Myers Squibb will develop business for some of UPSA’s successful products in markets outside Europe, such as the United States and Japan.