ImmuCell Corporation, a Maine-based company specializing in diagnostic substances for veterinary use with a market capitalization of $37.13 million, has amended its existing agreement with Norbrook Laboratories Limited. The amendment, effective as of November 29, 2024, modifies the Development Services and Commercial Supply Agreement initially established on September 5, 2019.
Under the original agreement, Norbrook Laboratories was responsible for providing formulation, aseptic filling, and packaging services for ImmuCell's product Re-Tain™, which is a treatment for subclinical mastitis in lactating dairy cows. This treatment is significant as it targets a condition that can affect milk production and quality in the dairy industry.
ImmuCell's stock, which is listed on the NASDAQ Capital Market under the ticker symbol ICCC, may see investor reaction to this updated agreement.
This news comes as part of ImmuCell's ongoing efforts to manage its product supply chain and partnerships, ensuring the continued availability and regulatory compliance of its veterinary health products. The company maintains a healthy liquidity position with a current ratio of 3.11, indicating strong ability to meet short-term obligations.
In other recent news, ImmuCell Corporation has reported a significant recovery in its Q3 2024 financial results, with gross margins improving to 26% and EBITDA turning positive. The company's First Defense product line saw an increase in sales of 11%, 51%, and 46% for the three, nine, and twelve months ending September 2024, respectively. Despite inflationary pressures and production yield losses, the company's cash position improved to approximately $3.8 million.
The FDA is currently reviewing ImmuCell's Re-Tain submission, which could potentially undergo an expedited review process. CEO Michael Brigham has discussed strategies to reduce the significant backlog and restore gross margins to the targeted 35%-40% range.
The company is also focused on reducing the backlog of orders, especially during the peak season from December to April. Lastly, ImmuCell is exploring strategic partnerships to support development expenses and working on the development of a new bulk feed powder product to reduce costs.
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