Rocky Finances Spur RxElite to Abandon Both Its Name and Construction of New Idaho Manufacturing Campus

---

Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--In 2007, the city of Nampa, Idaho, was elated when generic manufacturer RxElite (Meridian, Idaho) decided it was the right place to move. The company planned to locate its headquarters, manufacturing and distribution operations on a 17-acre site and eventually employ 150. Thanks in part to a dismal 3Q08 financial report, the company recently pulled out of its lease obligation and changed its name to Landela.

Experiencing a third-quarter loss of $11 million and debt nearing $18 million against revenues of just $3 million, the company abandoned its plans for Nampa, despite the fact that the project was almost complete (Source: Industrial Info's Pharmaceutical Tracker - Online Database). With the administrative and distribution space nearly finished, all that was left to build was the manufacturing facility. As a result, developer Bob Hosac (Boise, Idaho) has put the property up for sale or lease.

The Nampa decision was just one of several measures the newly christened Landela has taken in an effort to survive, including the January 2009 sale of the company's inhaled-gas subsidiary, RxElite Holdings, to India's Piramal Healthcare for $4.2 million and the assumption of just more than $3 million in debt. The company, which formerly traded on the Pink Sheets, went on to suspend filing with the U.S. Securities and Exchange Commission. Additionally, three company directors resigned and remaining executives took a pay cut. Although no layoffs of the existing 50-employee work force have yet been enforced, they are expected.

View Plant Profile - 1074375

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.