Lannett Company announced that it and certain of its subsidiaries have successfully emerged from their Chapter 11 cases following the confirmation of its Plan of Reorganization (the “Plan”) on June 8, 2023.
“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,” said Tim Crew, Chief Executive Officer, Lannett. “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, the Company is well-positioned to invest in developing new, complex, and potentially commercially lucrative products across its pipeline, including its insulin franchise, respiratory, and ADHD medications. Compilation of the Company’s Biologics License Application (the “BLA”) for insulin glargine will be essentially complete in July and ready for filing. Prior to filing the BLA, the 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.
The Plan 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 over $500 million of the Company’s prepetition senior secured debt. The Company also has 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 have been canceled and are no longer publicly trading. The Company will be led by the existing management team alongside a newly constituted three-member Board of Directors. Chief Executive Officer Tim Crew, who continues as a Company board member, will be joined by Jeffrey D. Goldberg and Jason Shandell. Both seasoned executives bring a wealth of experience and industry expertise to the Company to further guide Lannett’s strategic direction and future success.