Is this deal still proceeding as announced? Since they announced that deal they have advised they renegotiated and altered contracts and agreements? Were there due diligence conditions still to be met?
If taken on face value that the deal is proceeding. Given the majority is white label supply and the margins will be limited. Presumably lower than the margins on their own branded products. At current gross profit margins, $4.1m revenue per annum would equate to under $350k per annum gross profit on this deal in year two. Presumably less in the first yr.
You never know, it may be the first deal they've announced to ever play out as announced without alteration and watering down or vanishing. I'm sure that would be a very welcome occasion for everyone.
I'll be keeping an eye on the financials as well . Still waiting on the overdue release of financials in the UK for MGC Pharma UK. They'll make some interesting reading, I'm sure. Maybe they are overdue for a reason
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- Ann: UK DISTRIBUTION AGREEMENT SIGNED FOR MGC PHARMA MEDICINES
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