BioGaia established a subsidiary, BioGaia Pharma AB, to take advantage of the opportunities to develop drugs identified in the research and development conducted in the company's normal operations. For certain target segments, these categories are limiting and in some cases BioGaia also lacks distribution channels for pipeline products. For this reason, the Board has decided to also develop probiotic drugs through BioGaia Pharma. Drug candidates will primarily be developed to be licensed to appropriate partners at relatively early stages and BioGaia's capital commitment is therefore initially limited. If capital requirements were to increase significantly, the assessment is that external funding is possible.

Nigel Titford, responsible for BioGaia's business development, will become BioGaia Pharma's CEO.