Parnell Signs Contract Manufacturing Deal with Sanofi’s MerialBy
Parnell Pharmaceuticals Holdings Ltd, a commercial-stage pharmaceutical company focused on developing, manufacturing and marketing animal health pharmaceuticals, has formed a contract manufacturing agreement with Merial, the animal health division of Sanofi.
Under the terms of the contract manufacturing agreement, Merial will purchase certain sterile injectable products, exclusively from Parnell, with minimum annual purchase commitments over the 10-year term of the agreement. Merial will pay an upfront establishment fee in return for Parnell commencing immediate supply of product. Parnell estimates the total value of the agreement between $7 million and $20 million depending on volume of product purchased by Merial over the 10-year term.
Parnell said that it continues to purse contract manufacturing opportunities to leverage the 75% available capacity it has at its facility, and this agreement with Merial generates cashflows that will contribute to our goal of seeing its manufacturing division becoming a profit center in the future. The company said that it hopes to announce further contract manufacturing deals in 2016.
Source: Parnell Pharmaceuticals