Lannett devised a cost-cutting initiative after Bridgewater, N.J.-based drugmaker Amneal Pharmaceuticals gained FDA approval earlier in July for a generic version of its top-selling drug, the antipsychotic Fluphenazine. During its last fiscal year, 10 percent of the drugmaker’s $655.4 million in yearly sales was derived from Fluphenazine prescriptions.
“[Generic Fluphenazine] is currently our largest revenue product and one that has higher than average gross margins,” Lannett CEO Tim Crew told Philadelphia Business Journal. “We implemented the restructuring and cost savings plan, in part, to mitigate the impact of competitive pricing pressure.”
Most of the layoffs affect employees at Lannett’s Seymour, Ind.-based plant, who will receive severance packages.
The initiative also calls for all future development and research to be conducted at a single Philadelphia location. Altogether, the drugmaker expects to save about $15 million annually.
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