LMNL - Liminal BioSciences ends CDMO agreement for $33M cost savings

• Canadian biotech Liminal BioSciences ( NASDAQ: LMNL ) announced Thursday that the company terminated the long-term legacy CDMO agreement relating to its previously owned plasma-derived therapeutics business in favor of ~$33.1M cash savings.
• The deal signed in May 2021 included a $9M minimum purchase commitment per year for the remaining contract period. Previously, LMNL had sent an early five-year termination notice to end the agreement in August 2021.
• The termination agreement ends the deal with immediate effect, and per the terms, LMNL will pay $18M to cover past sums due to the termination date. Additional two payments worth $3.4M each are due in Q1 2023 and Q1 2024.
• "We are very pleased to have reached this agreement, which results in anticipated cash savings of approximately $33.1 million," Chief Executive Bruce Pritchard remarked.
• In October, LMNL announced the complete divestment of its plasma-derived therapeutics business for more than $100M.

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