Wyoming pharmaceutical labs closure expected to cost $5M
CODY, Wyo. (AP) — The closure of a Wyoming pharmaceutical subsidiary is expected to cost its owner about $5 million.
The Cody Enterprise reports Lannett Company Inc. estimates that closing Cody Labs will include termination payouts as it cuts 70 remaining positions.
Philadelphia-based Lannett reported the closure costs in a June 11 U.S. Securities and Exchange Commission report.
Cody Labs develops and manufactures controlled substance active pharmaceutical ingredients.
Lannett says the $5 million estimate includes about $2.5 million in severance and pay for employees designated for layoffs, $2 million for contract termination, and about $500,000 to move equipment and property to other company facilities.
Lannett approved a plan to sell Cody Labs’ API business in September 2018, but now plans to sell the subsidiary’s equipment and real estate.
Information from: The Cody Enterprise, http://www.codyenterprise.com