Lifecore expands relationship with Alcon through commercial arrangements

Lifecore Biomedical (LFCR) finalized a series of updated commercial arrangements with its long-term commercial Hyaluronic Acid and CDMO customer, Alcon (ALC) to extend and expand the existing CDMO relationship. Additionally, the Company also entered into a limited waiver and amendment to its credit agreements with Alcon and with BMO to, among other things, waive certain financial reporting delivery requirements. With these agreements in place, Lifecore continues to advance its work on becoming current on its periodic reports, including completing the filing of its Annual Report on Form 10-K for the fiscal year ended May 28, 2023, which it anticipates being completed in the near-term. On December 31, 2023, Lifecore entered into a series of commercial agreements with Alcon, including a long-term 8-year extension of its contract manufacturing agreement, which, among other things, contemplates increased capacity of aseptic manufacturing services; an amendment to its Hyaluronic Acid supply agreement to provide Alcon with an option to purchase additional HA equipment to accommodate expected future capacity needs; and new Storage Services Agreement for Lifecore to store certain of Alcon’s HA ingredients that are manufactured by Lifecore. In connection with Lifecore’s delayed periodic reports, Alcon and BMO each provided a waiver related to the delivery of certain monthly financial reporting and the timing of the Company’s periodic reporting, and amended certain covenants related thereto.