Lannett sells discontinued generics, inks private label deal for others

Lannett announced that it has sold previously discontinued abbreviated new drug applications for approximately $3 million to a privately held pharmaceutical company. The transaction was structured as a sale of assets. The companies also entered into a second separate agreement, under which the other party will purchase and distribute under a private label a limited number of certain other Lannett-owned generic drug products.

[Read more: Lannett to sell liquid drug manufacturing plant, other assets for $10.5M]

"We are pleased to incrementally strengthen our balance sheet and realize value from unused assets in our company," said Tim Crew, Lannett CEO. "Regarding the second transaction, the other party has already placed its initial purchase order last quarter and has the option to procure additional batches of the products by May 31, 2023. The gross margin on these private label sales is above our recent company average."

Crew added that a portion of the expected private label sales was included in the company's guidance for fiscal 2023, issued on Aug. 24, 2022.