KORU Medical Extends Manufacturing Agreement to 2031, Adds Second Site
KORU Medical Systems, Inc. amended its manufacturing and supply agreement with Command Medical Products, LLC, extending the initial term to December 31, 2031. The amendment includes modifications to pricing and payment terms, establishes Command as the exclusive manufacturer for certain products, and mandates Command to qualify a second manufacturing site by December 31, 2027, with KORU retaining termination rights for non-compliance. Additionally, the agreement clarifies intellectual property ownership and removes a non-competition provision.
Key Highlights
- Manufacturing and supply agreement with Command Medical Products extended to December 31, 2031.
- Command Medical Products required to qualify a second manufacturing site by December 31, 2027.
- KORU Medical Systems gains termination right if Command fails to qualify the second site.
- Command established as exclusive manufacturer for a limited set of KORU's products.
- Modified product pricing, annual price adjustments, and application of pass-through cost savings.
- Payment terms were decreased and an annual performance assessment with a 'True-Up Payment' formula was established.
- Non-competition provision between the parties was removed.
- Intellectual property ownership and corresponding licenses were clarified.
Price Impact
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