Lannett Enters Into Agreement With Amneal Pharmaceuticals For Levothyroxine
Lannett Company, Inc. (NYSE: LCI) today announced that it has entered into an agreement with Amneal Pharmaceuticals, Inc. (Amneal) with regard to Levothyroxine Sodium Tablets USP. Under the agreement, Amneal will be Lannett's sole customer for Levothyroxine Sodium beginning December 1, 2018 through March 23, 2019, and will re-sell the products to its customers. Lannett will receive an upfront payment of $50 million, other terms of the transaction were not disclosed.
As previously announced, Lannett's distribution agreement with Jerome Stevens Pharmaceuticals (JSP), which includes Levothyroxine Sodium Tablets USP, expires on March 23, 2019 and will not be renewed.
"This agreement benefits all parties, including and importantly patients and customers who can be assured of a definitive transition and supply plan for this important medication," said Tim Crew, chief executive officer of Lannett. "For Lannett, this transaction guarantees $50 million of gross profit, which exceeded our previous projections for the 16 week period."
Crew said that the agreement allows Lannett to continue to recognize revenue and EBITDA for the remainder of the JSP contract term. Lannett will continue to distribute the two other products in its distribution agreement with JSP, Butalbital, Aspirin, Caffeine with Codeine Phosphate Capsules USP and Digoxin Tablets USP, through March 23, 2019.