Cediprof Inc. files for Ch. 11 bankruptcy, citing $33M in debt
The Center for the Development and Innovation of Pharmaceutical Products (Cediprof, in Spanish) filed for Chapter 11 bankruptcy protection at the US Bankruptcy Court in San Juan, listing $33.7 million in debt.
Located in Caguas, Cediprof was established in 2014 as a research, experimentation, and development center for generic pharmaceutical products in Puerto Rico. It is a part of the Neolpharma Pharmaceutical Group family of companies.
At the time, generics pharmaceutical firm Neolpharma invested $12 million in machinery and construction equipment to establish the 2,000 square-foot plant and a 4,000 square-foot warehouse.
Its list of secured creditors is headed by Oriental Bank, which is owed $3.2 million. The list of unsecured creditors includes International Finance Corp., to which it owes $15 million, and Sandoz Inc., which is owed closed to another $15 million.
Over the years, Cediprof has manufactured several generic drug products. In 2020, Cediprof entered into an interim exclusive supply and distribution agreement with Philadelphia-based Lannett Company Inc. for Cediprof’s FDA approved Levothyroxine Sodium Tablets USP, according to a press release.
The interim agreement ended July 31, 2022, at which time, a previously announced 10-year exclusive supply and distribution agreement with Cediprof kicked in. That distribution agreement set off a lawsuit by Sandoz, which claimed breach of a marketing and distribution contract related to a partnership of 17 years.
In the bankruptcy filing, Cediprof lists some $28 million in assets.