PHILADELPHIA and CAGUAS, Puerto Rico, July 16, 2020 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) and Cediprof, Inc., a part of the Neolpharma Pharmaceutical Group family of companies, today said that the companies have entered into an interim exclusive supply and distribution agreement for Cediprof's FDA approved Levothyroxine Sodium Tablets USP. Lannett said it expects to commence distributing the product in the U.S. on August 3, 2020. The interim supply agreement terminates on July 31, 2022, when the previously announced 10-year exclusive supply and distribution agreement with Cediprof commences. Total U.S. sales of the product, according to IQVIA market, were approximately $2.3 billion for the 12 months ending May 2020, although actual generic market values are expected to be lower.
"Levothyroxine tablets is a critically important medication for those with thyroid deficiency and remains one the most prescribed drugs in the United States," said Tim Crew, chief executive officer of Lannett. "This is a market that we know well, having participated in it for many years. Our team looks forward to launching all 12 currently marketed dosage strengths of Cediprof's product."
Crew went on to say, "Adding Levothyroxine tablets to our offering comes on the heels of six new product launches in our most recently completed quarter. We also recently took actions to improve our working capital and strengthen our balance sheet, which have increased our cash position to more than $140 million at our fiscal year end."
"We have selected Lannett as our new exclusive distribution partner for our FDA approved Levothyroxine product," said Cediprof Chief Executive Officer, Efrén Ocampo. "Lannett's sales and marketing expertise combined with the company's intimate knowledge of the Levothyroxine market make them an ideal partner. We ceased manufacturing the product under the former partner's label, and we have been building inventory of the same high quality Levothyroxine with the "Lannett" label. Our mutual goal is to ensure that current patients and customers can continue to receive an uninterrupted supply of the product."
Under the terms of the interim agreement, Lannett shall pay to Cediprof a transfer price plus a royalty based on net profits. The companies noted that Cediprof's previous distribution partner disagrees with and may challenge the termination notice it received some weeks ago.
About Neolpharma Pharmaceutical Group:
Neolpharma Pharmaceutical Group engages in the research, development, production and distribution of generic medicines in the following therapeutic areas: CNS, oncology, metabolic disease, rheumatology and infectious diseases. Based in Mexico City, Mexico, Neolpharma Group has affiliates and operations in Puerto Rico, the U.S. and Latin America. For more information, visit the company's website at www.neolpharma.com.
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, the company successfully commercializing Levothyroxine Sodium Tablets, and the potential material impact of COVID-19 on future financial results, 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.
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SOURCE Lannett Company, Inc.