0001104659-22-030599.txt : 20220304 0001104659-22-030599.hdr.sgml : 20220304 20220304160648 ACCESSION NUMBER: 0001104659-22-030599 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20220303 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220304 DATE AS OF CHANGE: 20220304 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LANNETT CO INC CENTRAL INDEX KEY: 0000057725 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 230787699 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31298 FILM NUMBER: 22714090 BUSINESS ADDRESS: STREET 1: 9000 STATE RD CITY: PHILADELPHIA STATE: PA ZIP: 19136 BUSINESS PHONE: 2153339000 MAIL ADDRESS: STREET 1: 9000 STATE ROAD STREET 2: 9000 STATE ROAD CITY: PHLADELPHIA STATE: PA ZIP: 19136 FORMER COMPANY: FORMER CONFORMED NAME: NETHERLANDS SECURITIES INC DATE OF NAME CHANGE: 19660629 8-K 1 tm228384d1_8k.htm FORM 8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(D) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 3, 2022

 

 

 

LANNETT COMPANY, INC.

(Exact name of registrant as specified in its charter)

 

 

 

COMMISSION FILE NO. 001-31298

 

State of Delaware   23-0787699
(State of Incorporation)   (I.R.S. Employer I.D. No.)

 

1150 Northbrook Drive, Suite 155

Trevose, PA 19053

(215) 333-9000

(Address of principal executive offices and telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, $0.001 par value   LCI   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this Chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 1.01      Entry into a Material Definitive Agreement

 

Pursuant to a Contract of Sale-Office, Commercial and Multi-Family Residential Premises (the “Facility Purchase Agreement”), dated March 3, 2022, by and between Chartwell Carmel Realty, LLC (“Chartwell Realty”) and Silarx Pharmaceuticals, Inc. (“Silarx”), a wholly-owned subsidiary of Lannett Company, Inc. (the “Company”), Chartwell Realty will acquire that certain real property and improvements owned by Silarx located at 1033 Stoneleigh Avenue, Carmel, New York 10512 (the “Facility”) for a purchase price of $7.5 million.

 

Pursuant to an Asset Purchase Agreement dated March 3, 2022 (the “Asset Purchase Agreement”), by and among Chartwell Carmel Assets, LLC (“Chartwell Assets”), Chartwell Pharmaceuticals, LLC (“Chartwell LLC”), the Company, Silarx and Lannett Holdings, Inc., a wholly-owned subsidiary of the Company (“Holdings”), Chartwell Assets shall acquire equipment located at the Facility and certain ANDAs and other assets owned by the Company, Silarx and Holdings for a purchase price of $3.0 million.

 

In connection with the transactions contemplated by the Facility Purchase Agreement and the Asset Purchase Agreement, pursuant to the terms of a Manufacture and Supply Agreement, dated March 3, 2022 by and among Chartwell Pharmaceuticals Carmel, LLC (“Chartwell Carmel”), Chartwell LLC and the Company (the “Supply Agreement”), Chartwell Carmel will manufacture on behalf of the Company certain products at the Facility for a period of up to 18 months after the closing of the transactions contemplated by the Facility Purchase Agreement and the Asset Purchase Agreement until such time as the Company can transfer the manufacturing of such products to the Company’s other facility.

 

The closing of the transactions contemplated by the Facility Purchase Agreement, the Asset Purchase Agreement and the Supply Agreement, which is anticipated to occur on or before March 31, 2022, is subject to the satisfaction or waiver of the closing conditions set forth therein.

 

The Company expects to file the Facility Purchase Agreement, the Asset Purchase Agreement and the Supply Agreement as exhibits to its Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2022. The descriptions of the Facility Purchase Agreement, the Asset Purchase Agreement and the Supply Agreement contained herein do not purport to be complete and are qualified in their entirety by reference to the full texts of the Facility Purchase Agreement, the Asset Purchase Agreement and the Supply Agreement when filed.

 

Item 9.01      Financial Statements and Exhibits

 

(d)       Exhibits

 

Exhibit No.      Description

 

99.1March 4, 2022 Press Release of Lannett Company, Inc.
  
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

LANNETT COMPANY  
   
By: /s/ Samuel H. Israel  
  Chief Legal Officer and General Counsel  
  Date: March 4, 2022  

 

 

 

EX-99.1 2 tm228384d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

Contact: Robert Jaffe
  Robert Jaffe Co., LLC
  (424) 288-4098

 

LANNETT Announces sale of liquid drug manufacturing plant and other assets for $10.5 million

 

--Transaction a Key Element of Company’s Plan to Streamline Operations and Reduce Costs; Proceeds Further Strengthens Cash Position--

 

Philadelphia, PA March 4, 2022 – Lannett Company, Inc. (NYSE: LCI) today announced that it has entered into material definitive agreements to sell its liquid drug manufacturing facility in Carmel, NY, as well as equipment located at the Carmel facility, certain Abbreviated New Drug Applications (ANDAs) and other assets to a private company for $10.5 million in cash, of which $9.0 million is due at closing. The transaction is anticipated to close within the next several weeks.

 

“With this transaction, we are streamlining our manufacturing operations and substantially reducing overhead expenses, important elements of our previously announced restructuring plan,” said Tim Crew, chief executive officer of Lannett. “Moreover, we are strengthening our cash position and capturing value from non-core assets. I am also pleased that the buyer has agreed to retain nearly all of the existing employees currently working at the Carmel plant.”

 

The companies also entered into a supply agreement, effective after the closing of the above mentioned transactions. Under the agreement, the buyer will manufacture on behalf of Lannett certain products at the Carmel facility for a period of up to 18 months, until such time as Lannett can transfer the manufacturing of such products to its other facility.

 

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, successfully completing the transaction to sell the Carmel plant, equipment, ANDAs and other assets, successfully transferring manufacturing of certain products from the Carmel plant to other facilities and achieving cost savings, 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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Cover
Mar. 03, 2022
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Mar. 03, 2022
Entity File Number 001-31298
Entity Registrant Name LANNETT CO INC
Entity Central Index Key 0000057725
Entity Tax Identification Number 23-0787699
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 1150 Northbrook Drive
Entity Address, Address Line Two Suite 155
Entity Address, City or Town Trevose
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19053
City Area Code 215
Local Phone Number 333-9000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 par value
Trading Symbol LCI
Security Exchange Name NYSE
Entity Emerging Growth Company false
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