Rapid Micro Biosystems Announces Global Distribution and Collaboration Agreement with the Life Science business of Merck KGaA, Darmstadt, Germany
Rapid Micro Biosystems (NASDAQ: RPID) has entered into a five-year global distribution and collaboration agreement with MilliporeSigma, the Life Science business of Merck KGaA. The partnership grants MilliporeSigma global co-exclusive rights to sell Growth Direct systems and related consumables across pharmaceutical, medical device, personal care, cosmetics, and food and beverage sectors worldwide.
The agreement includes minimum purchase commitments for Growth Direct systems in the first two years. Rapid Micro will maintain its existing sales channels and continue handling system installation, validation, and service. The collaboration aims to explore cost savings through MilliporeSigma's manufacturing capabilities, with potential for joint technology development and service enhancements.
Rapid Micro Biosystems (NASDAQ: RPID) ha stipulato un accordo globale di distribuzione e collaborazione della durata di cinque anni con MilliporeSigma, il business delle scienze della vita di Merck KGaA. Questa partnership concede a MilliporeSigma diritti co-esclusivi a livello globale per la vendita dei Growth Direct systems e dei consumabili correlati nei settori farmaceutico, dispositivi medici, cura personale, cosmetici e alimenti e bevande in tutto il mondo.
L'accordo include impegni di acquisto minimi per i Growth Direct systems nei primi due anni. Rapid Micro manterrà i propri canali di vendita esistenti e continuerà a gestire l'installazione, la convalida e il servizio dei sistemi. La collaborazione mira a esplorare risparmi sui costi attraverso le capacità di produzione di MilliporeSigma, con il potenziale per lo sviluppo congiunto di tecnologie e miglioramenti dei servizi.
Rapid Micro Biosystems (NASDAQ: RPID) ha firmado un acuerdo global de distribución y colaboración por cinco años con MilliporeSigma, la división de Ciencias de la Vida de Merck KGaA. Esta asociación otorga a MilliporeSigma derechos de venta co-exclusivos a nivel mundial para los Growth Direct systems y consumibles relacionados en los sectores farmacéutico, dispositivos médicos, cuidado personal, cosméticos y alimentos y bebidas en todo el mundo.
El acuerdo incluye compromisos de compra mínima para los Growth Direct systems en los primeros dos años. Rapid Micro mantendrá sus canales de venta existentes y seguirá manejando la instalación, validación y servicio de los sistemas. La colaboración tiene como objetivo explorar ahorros de costos a través de las capacidades de fabricación de MilliporeSigma, con potencial para el desarrollo conjunto de tecnología y mejoras en el servicio.
Rapid Micro Biosystems (NASDAQ: RPID)는 Merck KGaA의 생명 과학 사업부인 MilliporeSigma와 5년 간의 글로벌 유통 및 협력 계약을 체결했습니다. 이 파트너십은 MilliporeSigma에게 제약, 의료 기기, 개인 관리, 화장품 및 식음료 분야에서 Growth Direct systems 및 관련 소모품을 판매할 수 있는 글로벌 공동 독점 권한을 부여합니다.
계약에는 첫 2년 동안 Growth Direct systems에 대한 최소 구매 약정이 포함되어 있습니다. Rapid Micro는 기존 판매 채널을 유지하고 시스템 설치, 검증 및 서비스를 계속 관리합니다. 이 협력은 MilliporeSigma의 제조 능력을 통해 비용 절감을 탐색하고, 공동 기술 개발 및 서비스 개선의 가능성을 모색하는 것을 목표로 합니다.
Rapid Micro Biosystems (NASDAQ: RPID) a conclu un accord mondial de distribution et de collaboration d'une durée de cinq ans avec MilliporeSigma, la branche des sciences de la vie de Merck KGaA. Ce partenariat accorde à MilliporeSigma des droits co-exclusifs mondiaux pour vendre des Growth Direct systems et des consommables associés dans les secteurs pharmaceutique, des dispositifs médicaux, des soins personnels, des cosmétiques ainsi que des aliments et des boissons dans le monde entier.
L'accord inclut des engagements d'achat minimum pour les Growth Direct systems au cours des deux premières années. Rapid Micro maintiendra ses canaux de vente existants et continuera à gérer l'installation, la validation et le service des systèmes. La collaboration vise à explorer des économies de coûts grâce aux capacités de fabrication de MilliporeSigma, avec un potentiel pour le développement technologique conjoint et les améliorations de service.
Rapid Micro Biosystems (NASDAQ: RPID) hat eine fünfjährige globale Vertriebs- und Kooperationsvereinbarung mit MilliporeSigma, dem Bereich Life Science von Merck KGaA, abgeschlossen. Die Partnerschaft gewährt MilliporeSigma globale co-exklusive Rechte zum Verkauf von Growth Direct systems und verwandten Verbrauchsmaterialien in den Bereichen Pharmazie, Medizintechnik, persönliche Pflege, Kosmetik sowie Lebensmittel und Getränke weltweit.
Die Vereinbarung umfasst Mindestabnahmeverpflichtungen für Growth Direct systems in den ersten zwei Jahren. Rapid Micro wird seine bestehenden Vertriebskanäle beibehalten und weiterhin die Installation, Validierung und den Service der Systeme übernehmen. Die Zusammenarbeit zielt darauf ab, Kosteneinsparungen durch die Fertigungskapazitäten von MilliporeSigma zu erkunden, mit dem Potenzial für gemeinsame Technologieentwicklung und Serviceverbesserungen.
- Global distribution expansion through MilliporeSigma's network
- Guaranteed minimum purchase commitments for first two years
- Potential cost savings through manufacturing optimization
- Opportunity for joint product development and innovation
- Co-exclusive rights may limit pricing power
- Dependence on MilliporeSigma meeting minimum purchase commitments
Insights
Rapid Micro Biosystems' new five-year global distribution agreement with MilliporeSigma represents a potentially transformative development for this micro-cap life sciences company. With a market cap of just
The agreement's minimum purchase commitments for Growth Direct systems in the first two years provides critical revenue visibility for RPID, potentially reducing cash burn concerns while expanding market reach. For context, RPID has historically struggled with inconsistent system placement rates, making this guaranteed demand floor particularly valuable.
Beyond distribution, the collaboration on supply chain costs targets RPID's margin challenges. By leveraging MilliporeSigma's manufacturing scale and procurement power, RPID could accelerate gross margin improvement - a critical metric for achieving profitability and reducing capital needs. The consumables aspect of this partnership is particularly noteworthy, as these recurring revenue streams typically carry higher margins than instrument sales.
The partnership structure intelligently preserves RPID's direct sales channels while adding MilliporeSigma's extensive global reach, potentially creating a multiplier effect rather than cannibalization. By maintaining responsibility for installation, validation and service, RPID retains control of critical customer touchpoints and high-margin service revenue.
For investors, key metrics to monitor include: 1) acceleration in system placement rates, 2) gross margin improvement trajectory, and 3) changes in cash burn rate. While the agreement provides a stronger foundation, execution will determine whether this partnership truly transforms RPID's financial position and competitive standing in the automated microbial quality control market.
Significantly extends commercial reach of Growth Direct through expanded global sales channels; enables opportunities for collaboration on supply chain efficiencies, services, and joint product development.
LEXINGTON, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Rapid Micro Biosystems, Inc. (Nasdaq: RPID) (the “Company” or “Rapid Micro”), an innovative life sciences technology company providing mission critical automation solutions to facilitate the efficient manufacturing and fast, safe release of healthcare products, today announced that it has entered into a five-year global distribution and collaboration agreement (the “Agreement”) with the Life Science business of Merck KGaA , Darmstadt, Germany, which operates in the U.S. as MilliporeSigma (“MilliporeSigma”).
The agreement grants MilliporeSigma global co-exclusive rights to sell Growth Direct systems and related consumables. MilliporeSigma may sell to customers in the pharmaceutical, medical device, personal care, cosmetics and food and beverage fields worldwide. Rapid Micro will continue to utilize its existing direct sales team and distribution channels to sell, place, validate and service its products globally. Rapid Micro will also maintain responsibility to install, validate and service any Growth Direct system sold by MilliporeSigma.
The initial term of the agreement is five years and includes a commitment to purchase a minimum number of Growth Direct systems during each of the first two years.
The agreement also enables collaboration with respect to the Company’s product and supply chain costs. In this regard, the parties intend to explore cost savings focused on leveraging MilliporeSigma’s product offerings, manufacturing capabilities and scale to accelerate progress on the Company’s strategic priority of expanding gross margins.
The agreement also enables the parties to explore additional collaboration opportunities, including services and joint technology development efforts to enhance existing offerings and introduce new products.
“This strategic distribution and collaboration agreement represents a transformative opportunity, and we are excited to partner with MilliporeSigma, a highly respected leader in the life sciences industry,” said Robert Spignesi, President and CEO of Rapid Micro Biosystems. “MilliporeSigma’s global scale, top-tier brand and industry leadership, coupled with Rapid Micro’s market-leading Growth Direct system, consumables and services, will significantly expand our commercial reach and depth. We are confident this collaboration will enhance value to customers worldwide, while meaningfully advancing our priorities of accelerating Growth Direct System placements, improving gross margins and driving innovation.”
The Growth Direct system is the only fully automated, non-destructive growth-based platform for MQC testing that offers manufacturers faster time to results, improved data integrity and enhanced accuracy.
To learn more about the Company and the Growth Direct® platform, please visit our website at Rapid Micro Biosystems.
About Rapid Micro Biosystems
Rapid Micro Biosystems is an innovative life sciences technology company providing mission critical automation solutions to facilitate the efficient manufacturing and fast, safe release of healthcare products such as biologics, vaccines, cell and gene therapies, and sterile injectables. The Company’s flagship Growth Direct system automates and modernizes the antiquated, manual microbial quality control (“MQC”) testing workflows used in the largest and most complex pharmaceutical manufacturing operations across the globe. The Growth Direct system brings the quality control lab to the manufacturing floor, unlocking the power of MQC automation to deliver the faster results, greater accuracy, increased operational efficiency, better compliance with data integrity regulations, and quicker decision making that customers rely on to ensure safe and consistent supply of important healthcare products. The Company is headquartered in Lexington, Massachusetts and has U.S. manufacturing in Lowell, Massachusetts, with global locations in Switzerland, Germany, and the Netherlands. For more information, please visit www.rapidmicrobio.com or follow the Company on X (formerly known as Twitter) at @rapidmicrobio or on LinkedIn.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, statements regarding the Agreement and the terms thereof, including future collaboration opportunities between the parties, and the Company’s products and technology, including the intended benefits thereof.
In some cases, you can identify forward-looking statements by terminology such as “outlook,” “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements involve known and unknown risks, uncertainties and assumptions which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement, including, but not limited to, the Company’s ability to maintain and grow its relationships with its collaborators, including MilliporeSigma; the Company’s ability to manage its collaboration with MilliporeSigma and to realize the intended benefits of the Agreement; the impact of the terms of the Agreement on the Company’s business and results of operations; the Company’s ability to negotiate and enter into future collaboration opportunities with MilliporeSigma, and to realize the intended benefits therefrom; the purchasing decisions, practices and timing of customers for the Company’s products; and the other important factors outlined under the caption “Risk Factors” in the Company’s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on November 7, 2024, as such factors may be updated from time to time in its other filings with the SEC, which are available on the SEC's website at www.sec.gov and the Investor Relations page of its website at investors.rapidmicrobio.com. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it cannot guarantee future results. The Company has no obligation, and does not undertake any obligation, to update or revise any forward-looking statement made in this press release to reflect changes since the date of this press release, except as may be required by law.
FAQ
What are the key terms of RPID's distribution agreement with MilliporeSigma?
How will the MilliporeSigma partnership affect RPID's gross margins?
What markets can MilliporeSigma distribute RPID's Growth Direct system to?
Will RPID maintain its existing sales channels alongside the MilliporeSigma agreement?
