PHILADELPHIA CREAM, March 4, 2022 /PRNewswire/ — Lannett Company, Inc. (NYSE: LCI) today announced that it has reached significant definitive agreements to sell its liquid drug manufacturing facility to Carmel, NYas well as equipment located at carmel facility, certain abbreviated new drug applications (ANDAs) and other assets to a private company for $10.5 million in cash, including $9.0 million is due at closing. The transaction is expected to close in the coming weeks.
“With this transaction, we are streamlining our manufacturing operations and significantly reducing our overhead costs, important elements of our previously announced restructuring plan,” said Tim Crew, CEO of Lannett. “In addition, 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 have also entered into a supply agreement, effective after the closing of the aforementioned transactions. Under the terms of the agreement, the buyer will manufacture for Lannett certain products at the carmel facility for a period of up to 18 months, until Lannett can transfer the manufacturing of these products to its other facility.
About Lannett Company, Inc.:
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical indications. For more information, visit the company’s website at www.lannett.com.
This press release contains certain statements of a forward-looking nature concerning future events or future business performance. Any such statement, including but not limited to the successful completion of the sale transaction of the carmel factories, equipment, ANDA and other assets, successfully transferring the manufacture of certain products from the carmel plant to other facilities and the realization of cost savings, express or implied, is subject to market and other conditions, risks and uncertainties that may cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the risk factors discussed in the Company’s Form 10-K and other filings with the SEC from time to time. other, including the prospectus supplement relating to the proposed offering to be filed with the SEC. These forward-looking statements represent the judgment of the Company as of the date of this press release. The Company disclaims any intention or obligation to update these forward-looking statements.
SOURCE Lannett Company, Inc.