11th Oct 2013 07:14
LONDON (Alliance News) - Puricore PLC Friday said it has terminated a private-label wound care product distribution deal with Misonix, but said it was confident it would offset the hit on its margins by appointing new partners for the ultrasonic application of its wound care products.
"The parties had different views as to the interpretation of the distribution agreement, which was entered in July 2011, and the directors determined that this settlement was the prudent course rather than to initiate potentially costly and distracting litigation," the provider of anti-infection products to the medical, agricultural and food sectors said.
It said the deal was terminated without financial obligation by either party. However, the deal had been expected to deliver a total of about USD1 million in gross margin over 2013 and 2014.
"PuriCore will expand the ultrasonic application of its Wound Care products with a new partner in this specialty field. The company is currently in discussions with global marketing partners for new geographies and therapeutic markets," it said.
"The directors are confident that these business development initiatives along with other commercial activities will offset the margin loss."
Puricore shares were down 3.3% at 41.6 pence early Friday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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