PHILADELPHIA, March 4, 2022 /PRNewswire/ -- Lannett Company,
Inc. (NYSE: LCI) today announced that it 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.
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 news release contains certain statements of a
forward-looking nature relating to future events or future business
performance. Any such statement, including, but not limited to,
successfully completing the transaction to sell the Carmel plant, equipment, ANDAs and other
assets, successfully transferring manufacturing of certain products
from the Carmel plant to other
facilities and achieving cost savings, whether expressed or
implied, is subject to market and other conditions, and subject to
risks and uncertainties which can 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 documents filed with
the SEC from time to time, including the prospectus supplement
related to the proposed offering to be filed with the SEC. These
forward-looking statements represent the Company's judgment as of
the date of this news release. The Company disclaims any intent or
obligation to update these forward-looking statements.
Contact:
|
Robert
Jaffe
Robert Jaffe Co., LLC
(424) 288-4098
|
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SOURCE Lannett Company, Inc.