Lannett Company has entered into material definitive agreements to sell its liquid drug manufacturing facility in Carmel, NY, as well as equipment located at the Carmel facility, certain Abbreviated New Drug Applications (ANDAs) and other assets to a private company for $10.5 million in cash, of which $9.0 million is due at closing. The transaction is anticipated to close within the next several weeks.
"With this transaction, we are streamlining our manufacturing operations and substantially reducing overhead expenses, important elements of our previously announced restructuring plan," said Tim Crew, chief executive officer of Lannett. "Moreover, we are strengthening our cash position and capturing value from non-core assets. I am also pleased that the buyer has agreed to retain nearly all of the existing employees currently working at the Carmel plant."
The companies also entered into a supply agreement, effective after the closing of the above mentioned transactions. Under the agreement, the buyer will manufacture on behalf of Lannett certain products at the Carmel facility for a period of up to 18 months, until such time as Lannett can transfer the manufacturing of such products to its other facility.
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