New deals could extend relationship until 2017.

Celera and Abbott revised the terms of their strategic alliance from a profit-sharing arrangement to a distribution and royalty agreement. The distribution deal has an initial term of five years with the potential for two consecutive two-year renewal periods thereafter. The royalty agreement expires in September 2017.

Abbott will exclusively distribute certain molecular diagnostic products manufactured by Celera. Separately, Celera will receive royalties on the sale of m2000™ reagents, instruments, service, and related consumables, and Abbott will receive royalties on certain Celera genetic tests. The companies will also pay each other royalties on any newly developed products for the m2000 instrument.

These terms became effective as of October 1 and replace the profit-sharing terms, which were inked in June 2002 and restated in January 2006.

The agreements reportedly provide more flexibility for Celera and Abbott to develop and commercialize products. The companies will no longer share R&D and SG&A expenses as provided in the previous relationship.

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