Cody Labs For Sale
Written by Andrew-Rossi on October 31, 2018
Cody Labs is being sold.
According to an article in the Billings Gazette, Philadelphia-based pharmaceutical manufacturer Lannett Co. has approved a plan to sell Cody Laboratories, a subsidiary that produces active pharmaceutical ingredients used in prescription opioids.
In a U.S. Securities and Exchange Commission statement filed Friday, the company said it was shifting its focus to quote “nearer term opportunities,” adding that they were working on optimizing its cost structure.
Lannet, which is a publicly traded company, also cited concerns about the time it would take for Cody Labs to become profitable, pointing to ongoing investment and operational costs.
The filing states that Lannett approved a plan to sell Cody Labs in September, with any likely fair value of the subsidiary estimated to be approximately $30 million less than its recorded book value.
The decision comes four months after Lannett CEO Tim Crew announced layoffs for approximately 50 workers at Cody Labs, saying at the same time that the company remained “committed to investing in Cody’s operations.” The company was expected to employ approximately 100 workers after the layoffs.
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