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Lannett engages advisers to evaluate generic-drug maker's capital structure


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Lannett engages advisers to evaluate generic-drug maker's capital structure

Generic-drug maker Lannett Co. Inc. is seeking help from its existing advisers to evaluate options to address the company's debt and capital structure.

CEO Tim Crew said in an Oct. 8 press release that the company is aiming to "add revenues, reduce costs and more closely analyze financing options."

The company said it plans to use Kirkland & Ellis LLP and Lazard Ltd. as its advisers on the matter.

Moody's recently downgraded Lannett's corporate family rating to B3 from B2 and placed all of the company's ratings under review for downgrade.

The rating agency's decision came after Jerome Stevens Pharmaceuticals Inc. decided to end its distribution agreement with the Philadelphia-based company.

"Following the recent announcement that our distribution agreement with Jerome Stevens Pharmaceuticals, which expires on March 23, 2019, will not be renewed, we ramped up our efforts to address this eventuality and ultimately grow our business," Crew said.

Lannett is making progress, helped by the launch of five new products in the company's completed fiscal 2019 first quarter, Crew said.

The company expects to remain in line with its debt covenants till at least the end of fiscal 2019, the CEO said.

Lannett develops, produces, packages, sells and distributes generic versions of brand pharmaceutical products in the U.S.