According to the deal, Bristol-Myers will earn $438m upfront payment from Reckitt Benckiser for the exclusive rights to sell, distribute and market the products for a period of three years.
Picot is an antacid, Tempra is an analgesic and anti-pyretic, Micostatin is an antifungal agent, and Graneodin a cough and cold medicine, sold mainly in Mexico.
An anti-rash cream Dermodex, an anti-gas medicine Luftal, and Naldecon, a cold and flu symptoms treatment, are mainly sold in Brazil.
Bristol-Myers intercontinental region and Japan executive vice president and chief financial officer Charles Bancroft said, "This agreement allows us to increase our focus on the launch and commercialization of our innovative portfolio in these important markets in Latin America."
During collaboration, Bristol-Myers is responsible for manufacturing activities of the product, while Reckitt will buy the products and pay sales-based royalties to Bristol-Myers.
Bristol-Myers is also eligible for an option fee of $44m for the right to buy the products outright at the end of the collaboration period, acquiring the sales, marketing, and distribution rights, in addition to assets related to the products, such as trademarks, remaining inventories, and certain other assets.
The transaction is subject to the satisfaction or waiver of customary closing conditions, as well as competition law authorizations in Brazil and Mexico.
Jefferies Group served as exclusive financial advisor to Bristol-Myers, while Kirkland & Ellis acted as its legal adviser.