Leading Canadian Healthcare Services Provider Selects Crescita as Exclusive Manufacturing Partner under 5-Year Agreement

Rhea-AI Summary

Crescita Therapeutics Inc. (TSX: CTX, OTC US: CRRTF) has signed an exclusive 5-year Manufacturing and Supply Agreement with a leading Canadian healthcare services provider. The agreement covers the supply of sanitary products, including hand sanitizer, soap, and lotions, for distribution to publicly funded healthcare organizations. Key points:

- Initial 5-year term with a 3-year renewal option
- No minimum order quantities specified
- Potential annual revenue up to $6.0 million by the end of the initial term
- Crescita's revenue depends on the client's ability to convert Buying Group Members
- Crescita will support the client in developing the public sector healthcare market through competitive bidding

This partnership positions Crescita as an exclusive supplier for a multi-year, multi-jurisdiction project in the Canadian pharmaceutical industry.

Positive

• Exclusive 5-year Manufacturing and Supply Agreement with a leading Canadian healthcare services provider
• Potential annual revenue up to $6.0 million by the end of the initial term
• Opportunity to expand into the public sector healthcare market in Canada
• Positioning as an exclusive supplier for a multi-year, multi-jurisdiction project

Negative

• No minimum order quantities specified in the agreement
• Revenue contingent on client's ability to convert Buying Group Members from existing solutions

LAVAL, Quebec--(BUSINESS WIRE)-- Crescita Therapeutics Inc. (TSX: CTX and OTC US: CRRTF) (“Crescita” or the “Company”), a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house R&D and manufacturing capabilities, today announced that it has signed an exclusive Manufacturing and Supply Agreement (the “Agreement”) with a leading Canadian diversified healthcare services provider (the “Client”) to supply various sanitary products, including hand sanitizer, hand soap, and hand lotions (together the “Products”), for onward distribution to a network of publicly funded healthcare organizations, represented by a buying group (the “Buying Group” and the “Buying Group Members”).

With an initial term of five years and a three-year renewal option exercisable by the Buying Group, the Agreement does not provide for minimum order quantities. However, based on the forecasted volumes, annual revenue under the Agreement may reach up to $6.0 million by the end of the initial term. Crescita’s manufacturing revenue will be contingent on the Client’s ability to convert Buying Group Members from their existing solutions to its new sanitizer dispensing solution. As its exclusive manufacturing partner, Crescita will support the Client in developing the public sector healthcare market for the Products through competitive bidding processes with other buying groups in Canada.

“We are very pleased to have been selected by the Client, a prominent player in the Canadian pharmaceutical industry, as their exclusive supplier for this multi-year, multi-jurisdiction project. We believe that the strong partnership we have forged will pave the way for future collaborations,” commented Serge Verreault, President and CEO of Crescita.

About Crescita Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house R&D and manufacturing capabilities. The Company offers a portfolio of high-quality, science-based non-prescription skincare products and early to commercial stage prescription products. We also own multiple proprietary transdermal delivery platforms that support the development of patented formulations to facilitate the delivery of active ingredients into or through the skin. For more information visit, www.crescitatherapeutics.com.

Forward-looking Information
All information in this press release, other than statements of current and historical fact, represent forward-looking information within the meaning of applicable securities laws and is qualified by this cautionary note. Forward-looking information can be identified by words such as: “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “aim”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, “will”, “forecast”, and similar references to future periods. Forward-looking information in this press release includes, but is not limited to statements with respect to the forecasted volumes, revenues resulting from the Agreement, the deployment of hand sanitizer dispensers within the Buying Group Members, the development of a public sector healthcare market for the Products and future collaborations with the Client.

Forward-looking information is neither historical fact nor an assurance of future performance. Instead, it is based only on current beliefs, expectations, and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions.

Because forward-looking information relates to the future, it is subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control.

Actual results may differ materially from those indicated in forward-looking information. Therefore, you should not unduly rely on any forward-looking information. Important factors and risks that could cause actual results to differ materially from those indicated in forward-looking information include, among others:

• economic and market conditions including factors impacting global supply chains such as pandemics and geopolitical conflicts and tensions;
• the impact of inflation and fluctuating interest rates;
• the degree or lack of market acceptance of the Products by the Buying Group Members;
• reliance on third parties for marketing and distribution;
• the impact of changing conditions in the regulatory environment and product development processes;
• manufacturing and supply risks;
• the Company’s ability to meet its contractual obligations;
• the impact of product liability matters;
• the impact of litigation involving the Company and/or the Products;
• the impact of changes in relationships with the Client;
• the failure to renew the Agreement following the initial term;
• the failure to achieve forecasted volumes;
• developments and changes in applicable laws and regulations;
• the failure to achieve expected order quantities and/or revenue under the Agreement;
• the Client’s failure to deploy the new hand sanitizer dispensing solutions within the facilities of the Buying Group Members; and
• the failure to further develop the public sector healthcare market for the Products and be successful in the competitive bidding process.

As a result of the foregoing and other factors, no assurance can be given that future results, levels of activity or achievements indicated in any forward-looking information will actually be achieved. Any forward-looking information in this press release is based only on information currently available to management and speaks only as of the date on which it is provided. Except as required by applicable securities laws, Crescita undertakes no obligation to publicly update any forward-looking information, whether written or oral, that may be provided from time to time, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240719359002/en/

FOR MORE INFORMATION:

Investor Relations

Linda Kisa, CPA, CA

Vice-President, Reporting and Corporate Affairs

Email: lkisa@crescitatx.com

Source: Crescita Therapeutics

FAQ

What is the duration of Crescita Therapeutics' new manufacturing agreement?

The agreement has an initial term of 5 years with a 3-year renewal option exercisable by the Buying Group.

What products will Crescita Therapeutics (CRRTF) supply under the new agreement?

Crescita will supply various sanitary products, including hand sanitizer, hand soap, and hand lotions.

What is the potential annual revenue for Crescita Therapeutics (CRRTF) from this agreement?

Based on forecasted volumes, annual revenue under the Agreement may reach up to $6.0 million by the end of the initial term.

Does the agreement with Crescita Therapeutics (CRRTF) include minimum order quantities?

No, the Agreement does not provide for minimum order quantities.