CMG Pharmaceutical Terminates Supply Contract Worth 14.96 Billion Won with Taiwan H&B Due to COVID-19 Delays, No Revenue Generated
CMG Pharmaceutical disclosed that its single sales and supply contract with Taiwan's H&B for fillers, anti-adhesion agents, and hemostatic agents signed in 2019 was terminated at the counterparty's request.
The terminated contract value was 14.96 billion won, representing 30% of the company's 2018 consolidated revenue of 49.86 billion won, but no actual sales were generated since the contract signing.
The termination reason was the counterparty's request due to COVID-19 related delays in TFDA approval and worsening business viability of the products.
While there is no direct financial loss from this termination, the loss of anticipated overseas revenue may dampen growth prospects and send a negative signal to investors.
[AI Summary]CMG Pharmaceutical's contract termination with Taiwan H&B eliminates a potential 14.96 billion won revenue stream but incurs no actual loss. The contract was never executed due to COVID-19 delays and deteriorating product viability. Short-term financial impact is limited, but the setback in overseas expansion could raise concerns about mid- to long-term growth.