Lannett has informed the approximately 80 employees at its Cody Labs subsidiary it has decided to cease operations and close its facility in Wyoming. Representatives from Philadelphia-based Lannett Company, which owns Cody Labs, broke the news to employees on Tuesday.
Ric Asherman founded Cody Labs in 2000, and in 2007 Lannett, a 75-year-old company that manufactures, markets and distributes more than 89 generic drugs in the U.S., bought the company.
Lannett halted its planned expansion in Cody early last year.
Last July, it announced plans to cut 50 jobs – a reduction of nearly 40 percent – as it restructured under new CEO Timothy Crew. At the time, Lannett said the move would save $10 million annually.
“Over the past eight months, Lannett and Cody leadership have worked to find a potential buyer for the Cody business,” said LCI spokesperson Robert Jaffe in a media release. “Ultimately, however, potential buyers have only shown interest in purchasing Cody’s fixed assets, due in part to the opioid crisis.”
Lannett officials said the dozens of workers will be laid off in three phases: at the end of June, in early August and late September. A handful of the 80 to 85 current employees may stay on longer to help wind down the operation, the economic development group Forward Cody was told.