Subsequent Events	3 Months Ended
Sep. 30, 2021
Subsequent Events.
Subsequent Events	Note 20. Subsequent Events 2021 Restructuring Plan On November 1, 2021, the Board of Directors authorized a restructuring and cost savings plan (the “2021 Restructuring Plan”) to further optimize its operations, improve efficiencies and reduce costs. Under the 2021 Restructuring Plan, the Company will consolidate its manufacturing footprint by transferring certain liquid drug production from its Silarx Pharmaceuticals, Inc. (“Silarx”) facility in Carmel, New York to the Company’s main plant in Seymour, Indiana. The Company will then shut down operations at Silarx over a one to two-year period and pursue the sale of the facility. Several products manufactured by Silarx and Kremers Urban Pharmaceuticals, Inc. will be scaled back or discontinued over time. Particularly, the Company will scale back or phase out some small low-margin over-the-counter medicines from Carmel and two very low-margin prescription products as part of the restructuring program. During the transition of products from Carmel, New York to the Seymour, Indiana facility, the Company will continue to assess its portfolio and may introduce or discontinue additional products. As part of the 2021 Restructuring Plan, the Company will also scale back its research and development operations and eliminate certain administrative positions that primarily support the Silarx and research and development operations. The total reduction in headcount, and the basis of the estimated severance costs, for the 2021 Restructuring Plan is expected to be approximately 90 positions. Also, other existing and certain anticipated vacancies will not be filled. The Company initiated the plan on November 3, 2021 and expects that the actions contemplated under the 2021 Restructuring Plan will be substantially complete by June 30, 2023. Ultimately, the plan is expected to result in a leaner, more focused organization and generate cost savings of $20 million, annually. The Company estimates that it will incur approximately $4.0 million to $5.0 million of total costs to implement the 2021 Restructuring Plan, comprised primarily of approximately $3.0 million of severance and employee-related costs and approximately $1.0 million to $2.0 million of tech transfer costs. The Company also expects to incur approximately $2.0 million to $3.0 million in capital expenditures to build out the liquid manufacturing business at the Kremers Urban Pharmaceuticals, Inc. facility. In addition, the Company may incur non-cash impairment charges in connection with the 2021 Restructuring Plan relating to certain long-lived assets, including, but not limited to, the facility, equipment and other plant-related assets currently utilized by the Company.

Subsequent Events

3 Months Ended

Sep. 30, 2021

Note 20. Subsequent Events

2021 Restructuring Plan

On November 1, 2021, the Board of Directors authorized a restructuring and cost savings plan (the “2021 Restructuring Plan”) to further optimize its operations, improve efficiencies and reduce costs. Under the 2021 Restructuring Plan, the Company will consolidate its manufacturing footprint by transferring certain liquid drug production from its Silarx Pharmaceuticals, Inc. (“Silarx”) facility in Carmel, New York to the Company’s main plant in Seymour, Indiana. The Company will then shut down operations at Silarx over a one to two-year period and pursue the sale of the facility. Several products manufactured by Silarx and Kremers Urban Pharmaceuticals, Inc. will be scaled back or discontinued over time. Particularly, the Company will scale back or phase out some small low-margin over-the-counter medicines from Carmel and two very low-margin prescription products as part of the restructuring program. During the transition of products from Carmel, New York to the Seymour, Indiana facility, the Company will continue to assess its portfolio and may introduce or discontinue additional products. As part of the 2021 Restructuring Plan, the Company will also scale back its research and development operations and eliminate certain administrative positions that primarily support the Silarx and research and development operations. The total reduction in headcount, and the basis of the estimated severance costs, for the 2021 Restructuring Plan is expected to be approximately 90 positions. Also, other existing and certain anticipated vacancies will not be filled. The Company initiated the plan on November 3, 2021 and expects that the actions contemplated under the 2021 Restructuring Plan will be substantially complete by June 30, 2023. Ultimately, the plan is expected to result in a leaner, more focused organization and generate cost savings of $20 million, annually.

The Company estimates that it will incur approximately $4.0 million to $5.0 million of total costs to implement the 2021 Restructuring Plan, comprised primarily of approximately $3.0 million of severance and employee-related costs and approximately $1.0 million to $2.0 million of tech transfer costs. The Company also expects to incur approximately $2.0 million to $3.0 million in capital expenditures to build out the liquid manufacturing business at the Kremers Urban Pharmaceuticals, Inc. facility. In addition, the Company may incur non-cash impairment charges in connection with the 2021 Restructuring Plan relating to certain long-lived assets, including, but not limited to, the facility, equipment and other plant-related assets currently utilized by the Company.