Big changes at RxElite to combat debt
Work began in 2007 on the 17 acres of land in Nampa, Idaho, which was going to be used for a new headquarters, distribution centre and manufacturing facility.
The office space and distribution centre were nearing completion, with work on the manufacturing plant due to start later, when RxElite terminated the lease and was released from all obligations.
RxElite has been forced to take action after its last financial filing for the quarter ending September 30 revealed debts of $18.9m and a loss of $11m for the three months covered.
Since then the company has acted to improve the situation, with the abandonment of the Nampa site being accompanied by further cost-cutting measures. Three directors have resigned to “streamline the corporate structure” and senior executives who remain have taken a pay cut.
Prior to their resignations the three directors were involved in the sale of RxElite’s subsidiary, RxElite Holdings, to Piramal Healthcare. The subsidiary sells inhaled anesthetic gas but has been jettisoned in an attempt to resolve the current financial difficulties.
More staff may be at risk, with the company saying it will reduce the number of employees and other overheads. In addition, further savings will be made by suspending filings with the US Securities and Exchange Commission (SEC).
RxElite becomes Landela Pharmaceutical
In an effort to distinguish itself from the subsidiary it sold RxElite will now be operating under the name Landela Pharmaceutical. The company plans to adopt this name for its products, marketing and distribution.
