Lannett announced it has entered into a future exclusive supply and distribution agreement for the approved Levothyroxine Sodium Tablets USP of Cediprof, a wholly owned subsidiary of privately held Neolpharma Pharmaceutical Group.
Under the agreement, Lannett will commence U.S. distribution of the product no later than August 1, 2022. Lannett will make an upfront payment of $20 million within the next five business days and will receive a portion of the net profits once it commences distribution of the product. The term of the agreement is 10 years, which begins upon commencement of distribution. Other terms were not disclosed.
The Levothyroxine product covered under the agreement includes all 12 currently marketed dosage strengths, is FDA approved and presently commercialized by another party. We know well the market dynamics for Levothyroxine, and look forward to re-entering the space, especially with Cediprof’s high quality product. Levothyroxine is one of the most widely prescribed drugs in the U.S. and continues to be a critically important medication for thyroid deficiency,
said Tim Crew, chief executive officer of Lannett.