08:34 AM EDT, 07/22/2024 (MT Newswires) -- Crescita Therapeutics ( CRRTF ) , a dermatology company that saw its shares jump nearly 20% on Friday, on Monday secured a US$10 million supply agreement with its largest contract manufacturing client, a skin care company.

The agreement expands an existing partnership between the two parties and is the result of discussions from last November, when the client cancelled some purchase orders.

Crescita will now manufacture selected products from the client's largest product franchises, with a minimum commitment of US$2.5 million per year for four years, starting in 2025. Manufacturing volumes for the new products will partly make up for previously cancelled purchase orders, Crescita said. The client will also support Crescita with certain technological transfers.

The client will reimburse Crescita up to US$1.2 million, to make up for the cancelled purchase orders, mainly to cover the cost of unused inventory. To meet the new products' specifications and scale up its operations, Crescita will invest $0.8 million to upgrade its manufacturing facility with specialized equipment by year end.