5 yr contract 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.