LANNETT ANNOUNCES SALE OF SEVERAL DISCONTINUED GENERIC DRUGS
-Companies Entered Into a Separate Private Label Agreement for Certain Other Lannett Generic Products-
PHILADELPHIA, Oct. 19, 2022 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today announced that it has recently sold previously discontinued abbreviated new drug applications (ANDAs) 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.
"We are pleased to incrementally strengthen our balance sheet and realize value from unused assets in our company," said Tim Crew, chief executive officer of Lannett. "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 August 24, 2022.
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, realizing the expected sales and gross margin on the products sold to the privately held company referenced above, 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.
Robert Jaffe Co., LLC
SOURCE Lannett Company, Inc.