Key Highlights

• On June 24 2026 KORU Medical and Command Medical Products executed Amendment No. 1 to their 2024 manufacturing agreement.

• The original term now runs through December 31 2031 and will auto‑renew annually unless either party gives 180 days’ notice.

• Command must qualify a second manufacturing site by December 31 2027, with a 30‑day cure period for any failure.

KORU Medical Systems Inc. (NASDAQ: KRMD) announced a significant amendment to its long‑term manufacturing and supply agreement with Command Medical Products, LLC. The changes extend the partnership, recalibrate pricing structures, and introduce new operational safeguards for the production of subassemblies, needle sets and tubing products.

Extended Contract Duration

The amendment pushes the agreement’s expiration to December 31 2031, providing both parties with a stable horizon for continued collaboration. The contract will automatically renew each year, subject to a 180‑day notice requirement for non‑renewal, ensuring long‑term supply continuity for KORU Medical.

Revised Pricing and Payment Terms

Pricing provisions are adjusted to reflect current cost dynamics, including annual price adjustments and the application of pass‑through cost savings. These revisions aim to align product costs with market conditions while preserving margin expectations for both KORU Medical and Command.

Second Manufacturing Site Requirement

Command Medical is now obligated to locate and qualify an additional manufacturing site by December 31 2027. Failure to meet this milestone triggers a 30‑day cure period; if the shortfall persists, KORU Medical may terminate the agreement. This clause adds redundancy to the supply chain and mitigates the risk of single‑source dependence.

Exclusive Manufacturing Scope and Wind‑Up Rights

The amendment designates Command as the exclusive producer of a defined subset of KORU Medical’s products. It also expands the applicability of wind‑up period rights, providing clearer pathways for orderly wind‑down should termination occur.

Intellectual Property Clarifications

Ownership of intellectual property generated under the agreement is reaffirmed, with appropriate license grants clarified for ongoing product development. Mutual assignment rights are introduced, and the prior non‑competition restriction is removed, granting both parties greater flexibility in future collaborations.

Updated Termination Conditions

Standard termination triggers remain, including uncured material breach after 45 days, bankruptcy, and force‑major events lasting 30 days or more. The new site‑qualification failure clause adds a targeted termination right for KORU Medical, reinforcing supply reliability.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.