Lannett Company, Inc. has agreed to acquire a 196,000 square foot building in Philadelphia, PA for $5 million, where it has long-term plans to consolidate its existing facilities and establish a location for future expansion.
The agreement gives Philadelphia-based Lannett a 90 day inspection period, which began on August 8, 2013. The Company has the sole right to terminate the agreement if the due diligence inspection results are unacceptable.
The address of the building under contract has not yet been released.
Lannett currently owns three facilities in Philadelphia. Some administrative functions, manufacturing and production facilities and its quality control laboratory are located in a 31,000 square foot facility at 9000 State Road Philadelphia, PA.
A second facility, a 63,000 square foot building, is located within one mile of the State Road facility at 9001 Torresdale Avenue Philadelphia, PA. The company’s research laboratory and packaging functions are located at this location. This facility also has capacity for additional manufacturing space, if needed.
Lannett also owns a building at 13200 Townsend Road Philadelphia, PA, which consists of 66,000 square feet on 7.3 acres of land. This building is used for some administrative functions, warehouse space, and shipping. It also has capacity for additional manufacturing space, if needed.
The manufacturing facility of Lannett’s subsidiary – Cody Labs – is a 73,000 square foot structure on 15 acres in Cody, Wyoming. Cody Labs’ manufacturing facility currently has capacity for further expansion, both inside and outside the existing structure.
Lannett has experienced net sales growth at a compounded annual growth rate in excess of 23 percent over the past twelve years. In that time period net sales went from approximately $12.1 million in fiscal year 2001 to approximately $151.1 million in fiscal year 2013. This growth has been achieved primarily through strategic partnerships and launches of additional manufactured drugs.