Lannett closing Wyoming's only drug manufacturing plant, laying off 80

Hydrocodone opioid pills
Lannett, which specializes in pain drugs, is closing Cody Laboratories in Cody, Wyoming. (Getty/smartstock)

Eighty employees of Wyoming’s only drug manufacturing plant are feeling the pain of financially struggling Lannett. The opioid maker will close the plant in Cody and lay off its 80 remaining employees.

The small Philadelphia-based drugmaker this week informed employees that it could not find a buyer for Cody Laboratories and would close the plant by the end of the summer, the Gillette News Record reports.

Lannett has struggled with opioids falling out favor. A year ago, it laid out a cost reduction plan for Cody, where it develops and manufactures pain management APIs. Lannett whacked about 50 of the 135 employees at the Cody, Wyoming, plant and took a $5 million restructuring charge.

Whitepaper

Simplify and Accelerate Drug R&D With the MarkLogic Data Hub Service for Pharma R&D

Researchers are often unable to access the information they need. And, even when data does get consolidated, researchers find it difficult to sift through it all and make sense of it in order to confidently draw the right conclusions and share the right results. Discover how to quickly and easily find, synthesize, and share information—accelerating and improving R&D.

In the fall, however, Lannett decided the cuts were insufficient and put the facility up for sale. That effort proved fruitless.  

RELATED: Generic drug maker Lannett cuts 50 jobs at API plant, loses deal with key supplier

“We tried to find buyers and, largely due to the opioid crisis, there are not buyers lining up for this business,” Lannett spokesman Robert Jaffe told the newspaper.

The company last month said its restructuring efforts were paying off, and it raised its sales guidance for the year to a range of $640 million to $645 million from $615 million to $635 million.

Last month, the company began marketing generic versions of attention-deficit disorder drug Concerta and Adderall, both federally scheduled medications. It also said it was beginning a trial with a partner of a biosimilar of Sanofi's Lantus.

Suggested Articles

That didn’t take long. Sanofi CEO Paul Hudson has only been at the reins for a couple months, but on Tuesday, he unveiled a major shakeup.  

New "gold standard" data could further increase doctors' confidence in multiple myeloma med Darzalex, Johnson & Johnson says.

Could Monday's cancer buyout be a hint about what Sanofi CEO Paul Hudson will unveil at Tuesday's investor confab? Analysts think so.