Lannett has approved a plan to sell Cody Laboratories, a subsidiary that produces active pharmaceutical ingredients (API) used in prescription pain medications.
In a U.S. Securities and Exchange Commission statement filed October 26, 2018, the company said it was shifting its focus to “nearer term opportunities.” The company also cited concerns about the time it would take for Cody Laboratories to become profitable, pointing to ongoing investment and operational costs.
Cody Laboratories, which was founded 18 years ago, produces generic prescription pain medications. It has been owned by Lannett since 2007.
In the spring of 2017, Lannett broke ground on a $50.5 million campus in Cody. After approximately one year of activity, Lannett shut down construction indefinitely.
In July, the company announced plans to cut 50 jobs at the Cody operation.