The supply contract for fillers, anti-adhesion agents, and hemostatic agents between CMG Pharmaceutical and Taiwan's H&B (Harvest Biotech) has been terminated.

According to CMG Pharmaceutical's disclosure on the 19th, the termination amount is 14,957,196,800 won, equivalent to 30.0% of the company's most recent revenue (49,864,782,072 won) as of the disclosure date.

The contract was signed on July 3, 2019, as a sole sales and supply agreement with a term running through July 3, 2026. This termination is a follow-up measure to the contract signing disclosed on July 4, 2019.

The termination was made at the request of the counterparty, H&B. The company stated that it was informed the reasons for termination were delays in local regulatory approval due to COVID-19 and deteriorating business viability for the relevant products.

CMG Pharmaceutical noted that the contract was conditional upon obtaining approval from the Taiwan Food and Drug Administration (TFDA), and that no revenue had been generated from the time of signing until the termination.

The date the company received the contract termination notice (termination date) was June 18, 2026.