Lannett Company, a developer, manufacturer, packager, marketer and distributer of generic pharmaceutical products, emerged from Chapter 11 bankruptcy following the confirmation of its plan of reorganization on June 8.
“Our swift and successful emergence marks a significant milestone for Lannett and represents a meaningful vote of confidence from our stakeholders in our long-term strategy and the future of our business,” Tim Crew, CEO of Lannett Company, said. “We enter this new era for our company on much stronger financial footing with renewed energy and the resources needed to focus on our core mission of manufacturing and producing safe, life-enhancing and affordable pharmaceutical medicines. I thank our team, customers and partners for their ongoing support during this process, and look forward to partnering with our new board members to build a great future for Lannett.”
Upon emergence, Lannett Company will invest in developing products across its pipeline, including its insulin franchise and respiratory and ADHD medications. Compilation of the company’s biologics license application for insulin glargine will be essentially complete in July and ready for filing. Prior to filing the biologics license application, Lannett Company expects to request a pre-submission meeting with the U.S. Food and Drug Administration with the intent of expediting the timeline to receive final approval for insulin glargine, which is anticipated next year.
Lannett Company’s plan of reorganization was supported by all major creditor constituencies, including more than 80% of holders of its senior secured notes and 100% of holders of its second lien term loan. Through its financial restructuring, the company reduced its debt by approximately $600 million, equitizing more than $500 million of the company’s prepetition senior secured debt. The company also entered into a credit agreement for a new revolving credit facility to support post-emergence liquidity and invest in future growth.
Lannett will now operate as a privately-held company under the ownership of its prepetition lenders. Equity shares of the pre-emergence company were canceled and are no longer trading publicly. The company will be led by its existing management team alongside a newly constituted three-member board of directors. Crew, who will continue as CEO and board member, will be joined by Jeffrey D. Goldberg and Jason Shandell on the new board.
