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July 11 (Bloomberg) -- Nestle SA’s Galderma unit broadened an alliance with French drugmaker Ipsen SA, expanding a distribution agreement for a wrinkle treatment that competes with Botox, as the Swiss food company accelerates in skin care.

Galderma will distribute Ipsen’s drug, sold under the Dysport and Azzalure brands, in several key markets through 2036, Paris-based Ipsen and Lausanne, Switzerland-based Galderma said today in a statement. The product, which is a toxin that reduces muscular spasms, also can be used to treat certain movement disorders in some countries.

This week, Nestle completed its 2.6 billion-euro ($3.5 billion) acquisition of a stake in Galderma to gain full control, and the $1.4 billion purchase of rights to Dysport and other drugs in North America from Valeant Pharmaceuticals Inc. The Swiss maker of KitKat bars and Nespresso coffee has created a unit called Nestle Skin Health to expand more in the dermatology market.

As part of today’s agreement, Galderma is paying Ipsen 25 million euros related to the Dysport rights acquired from Valeant, and it’ll get higher margins on the product in the U.S., Canada, Brazil and Europe. Ipsen will also pay 10 million euros to Galderma for control of a liquid toxin product in those markets.

Ipsen granted Galderma exclusive rights to develop and distribute Azzalure in the European Union and some markets in the Middle East and eastern Europe in 2007.

To contact the reporter on this story: Corinne Gretler in Zurich at cgretler1@bloomberg.net To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Thomas Mulier, Tom Lavell

Bloomberg