Supplier News Breaks
Lannett inks distribution, manufacturing pacts with Sunshine Lake
May 12th, 2014
PHILADELPHIA – Lannett Co. has entered into distribution and contract manufacturing services agreements with Sunshine Lake LLC, the U.S. subsidiary of the HEC Pharm Group of Shenzhen, China.
Lannett said Monday that under the distribution pact it will be the exclusive U.S. distributor of Sunshine Lake's zidovudine tablets (300 mg), a generic version of GlaxoSmithKline's Retrovir, an antiviral medication used to treat HIV.
The Lannett zidovudine tablets were launched last week, the generic drug company said. Last year, sales of zidovudine tablets 300 mg totaled about $4.5 million, according to IMS Health figures reported by Lannett.
In addition, over the next three years, Lannett and Sunshine Lake have agreed to co-develop 25 dosage formulations, with Sunshine Lake providing management services and expertise to scale up and commercialize products at Lannett's Philadelphia facilities. Sunshine Lake also has offered to provide contract manufacturing services and serve as the distributor in China for certain Lannett products.
And Sunshine Lake, as an active pharmaceutical ingredient (API) manufacturer, has also offered its experience, staff and expertise to help speed API development at Lannett's Cody Laboratories facility.
"This collaboration provides Lannett the perfect opportunity to add products to its portfolio, lower production costs, expand its pain management franchise and, possibly, enter the China market," stated Arthur Bedrosian, president and chief executive officer of Lannett. "With a premier sales force in China and expertise in formulating APIs, we believe HEC is the perfect strategic partner to help significantly grow our business."
HEC Pharm Group, established in 2002, is a subsidiary of HEC Group, a multibillion-dollar conglomerate, and one of the top 50 private enterprises in China.
"Lannett is a leading U.S. developer and manufacturer of generic pharmaceuticals, with a growing pain management business. We believe our goals, objectives and areas of expertise are aligned and complement those of Lannett," commented Jeffrey Weiss, president of Sunshine Lake. "This agreement creates new revenue streams for both companies' future growth."
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