Lannett is selling its liquid drug manufacturing facility in Carmel, N.Y., as well as equipment located at the facility, certain ANDAs and other assets to a private company for $10.5 million in cash, of which $9 million is due at closing.
The transaction is anticipated to close within the next several weeks, the company said.
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"With this transaction, we are streamlining our manufacturing operations and substantially reducing overhead expenses, important elements of our previously announced restructuring plan," Lannett CEO Tim Crew said.
The companies also entered into a supply agreement, effective after the closing of the above-mentioned transactions.
"Moreover, we are strengthening our cash position and capturing value from noncore assets. I am also pleased that the buyer has agreed to retain nearly all of the existing employees currently working at the Carmel plant," Crew said.
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.