Cody, home to Wyoming’s only generic prescription drug manufacturing company for nearly two decades, can no longer make that claim.
Cody Laboratories, maker of controlled substances, is shut down for good.
Parent company Lannett facilitated the closure faster than originally announced. In June, Robert Jaffe, Lannett spokesperson, issued a statement saying Cody Labs’ 80-some employees would exit the organization in three phases – the end of June, early August and late September.
In the press release, Jaffe partially blamed the opioid crisis.
On Wednesday, Jaffe confirmed Cody Labs equipment has been sold and the company is in the process of selling its real estate.
Ric Asherman founded the prescription drug production company in 2000. He sold to Lannett in 2007.
In recent years, as plans to build a multi-building, $50 million production campus on Road 2AB progressed, the Philadelphia-based Lannett expanded its Cody workforce to 126 employees and projected adding 35 new positions.
New CEO Timothy Crew took over in January 2018, and by that July restructuring and reduction of the Cody Labs operation were underway. Plans to sell were announced in September 2018.
Eight months later Lannett informed its remaining employees at Cody Labs of the company’s decision to cease operations and close its facility at 601 West Yellowstone where it had operated since 2004.
On Aug. 27, in a company news release, Crew briefly noted the closure during Lannett’s fourth-quarter and full-year earnings summary.
The company highlighted recent advancements.
“In fiscal 2019, we made excellent progress rebuilding our business,” Crew said. “We feel positive about our company’s future following a number of significant accomplishments.”
The company launched 25 products since January 2018 with annualized sales of roughly $100 million, acquired or in-licensed more than 40 products and paid down about $187 million in outstanding debt, including $87 million in voluntary payments.
In a fourth-quarter earnings call with investors, also on Aug. 27, Crew briefly commented on company restructuring involving Cody Labs.
“First, on cost reductions, we have completed virtually all actions related to our previously announced cost reduction plan,” he said. “In July, we completed the last material element of that program, ceasing operations at our Cody Labs business and selling the associated equipment. The ceasing of operations at Cody comes before we achieved any real traction in the pain-management business.
“The fact is we sold very little of such products – our silver lining, perhaps, given the current environment,” he continued.
Having ceased operations at Cody, Crew said Lannett is on track to qualify its Carmel, N.Y., plant as an alternative manufacturing site.
Addressing pending litigation, the CEO said it was worth noting the company is a defendant in only one opioid lawsuit – a case involving Kremers Urban subsidiary and a single hospital.