The Philadelphia-based Lannett Company, which develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical indications will be closing a plant in Putnam County operated by its subsidiary Silarx Pharmaceuticals. All 72 employees who work there will be laid off.
The Silarx plant at 1033 Stoneleigh Ave. in Carmel is used for liquid drug production.
Lannett plans to transfer operations from Carmel to its main plant in Seymour, Indiana. The layoffs are expected to begin on March 26, 2022, with the complete shutdown of the plant occurring on June 3, 2023, according to a company filing with the New York State Department of Labor.
In June 2015, Lannett completed the acquisition of privately-held Silarx Pharmaceuticals, Inc. The Silarx plant in Carmel that Lannett acquired in the deal is approved by the U.S. Food and Drug Administration for drug production.
The plant closing is part of an effort by Lannett to compensate for weaker-than-expected financial results for the first quarter of Fiscal Year 2022. The company said that it plans to take various actions including:
- Consolidate the manufacturing footprint;
- Transfer liquid drug production to the company’s main plant in Seymour, Indiana, from its facility in Carmel;
- Close the Carmel plant and pursue its sale;
- Restructure research and development;
- Scale back or phase out some low-margin products that were being made at the Carmel site;
- Cut its total workforce by approximately 11%;
- Generate cost savings of approximately $20 million annually.
Lannett”™s net sales for the first quarter of Fiscal Year 2022 were $101.5 million compared with $126.5 million for the same period last year. Its gross profit for the quarter was $16.5 million or 16% of net sales compared with $25.7 million or 20% of net sales in last year”™s first quarter. It revised its guidance for the entire fiscal year to project net sales of from $370 to $400 million, a decrease of $30 million to $40 million from last year.
