Celemics Signs $10 Billion-Won Licensing and Supply Agreement With U.S. Diagnostics Company

Celemics has signed a licensing and supply agreement worth 10 billion won with a U.S. diagnostics company.

Celemics disclosed on the 1st that it had signed an agreement with Achieve Diagnostics, LLC, of the United States, to license its proprietary technology and supply related diagnostic kits. The effective date under the contract is the 31st of last month.

The agreement runs for 3 years from its effective date and will automatically renew for 1-year periods unless either party gives notice of nonrenewal at least 90 days before the agreement expires.

The contract value consists of royalties based on tests performed and proceeds from kit sales, without a fixed upfront payment or milestones. Based on the cumulative minimum commitments over 3 years, royalties total $2.475 million (approximately 3.4 billion won), and the minimum purchase amount for kits is $4.75 million (approximately 6.5 billion won).

The royalty rate is set at 20% of net sales from licensed tests. The minimum net sales threshold is $12.375 million (approximately 17 billion won). The won equivalents were calculated using the exchange rate for transaction purposes on the day of the announcement ($1 = 1,373.60 won).

The value of the agreement is equivalent to 172% of Celemics’ consolidated revenue of 5.76763 billion won last year.

Royalties will be settled quarterly and paid within 30 days of the invoice date, while kit payments will be made within 30 days of the invoice date following supply.

If cumulative net sales or kit purchases fall short of the minimum commitment at the end of each contract year, the counterparty must, within 30 days, either pay 20% of the shortfall as the equivalent royalty amount or submit a kit purchase order corresponding to the shortfall. If the shortfall is not resolved within the deadline, Celemics may convert the license to a nonexclusive license through written notice; the agreement itself will remain in effect.

Celemics said the agreement value was calculated based on the minimum commitments and that actual revenue may vary depending on future sales from licensed tests and the status of orders received.