Parnell Pharmaceuticals Holdings Ltd. announced the commencement of a Contract Manufacturing Agreement with Merial, the animal health division of Sanofi. Under the terms of the Contract Manufacturing Agreement, Merial will purchase certain sterile injectable products, exclusively from Parnell, with minimum annual purchase commitments over the 10-year term of the agreement. Merial will pay an upfront establishment fee in return for Parnell commencing immediate supply of product. Parnell estimates the total value of the agreement between USD 7 million and USD 20 million depending on volume of product purchased by Merial over the 10-year term.