PL Developments (PLD) has announced FDA approval for its Omeprazole Magnesium Tablet, an over-the-counter (OTC) equivalent to Prilosec® OTC. The company also completed a corporate debt refinancing. The FDA approval marks a significant milestone, making PLD the only US-based manufacturer of Omeprazole OTC.
FDA Approval for Omeprazole OTC
The FDA's approval of PLD's Omeprazole Magnesium Tablet allows the company to manufacture and commercialize the product at its Miami, FL facility. This positions PLD as the sole domestic provider of Omeprazole OTC in the United States. According to PLD, this achievement highlights the company's capabilities in developing and manufacturing complex consumer healthcare products.
"Receiving FDA approval for Omeprazole OTC is a significant achievement for our organization," said Evan Singer, President of PLD. "This accomplishment not only highlights our team's dedication and expertise in bringing complex products to market, but it also reinforces our role as a comprehensive supply partner for our customers. Our goal is to offer a wide assortment of consumer healthcare products that meet the highest standards of quality and reliability. We are committed to delivering value and consistency to our partners in an ever-evolving marketplace."
The US market for Omeprazole OTC is substantial, with annual retail sales reaching approximately $550 million. PLD anticipates commencing commercial shipments of Omeprazole to its clients in early 2025.
Corporate Debt Refinancing
PLD also announced the successful completion of an exchange offer involving $350 million of its 7.750% Senior Secured Notes due 2025 for $368.55 million in new PIK Toggle Senior Secured Notes due 2029. This strategic financial maneuver is intended to improve the company's financial flexibility and support future growth and investments.
Asaph Naaman, Chief Financial Officer, stated, "The successful consummation of the Exchange Offer is a strong affirmation of PLD's financial health and growth trajectory. This achievement reflects our focus on operational efficiencies, free cash flow generation, and building strong relationships with external stakeholders. We are now well-positioned to capitalize on future opportunities and continue our upward momentum."
PLD plans to issue an additional $131.45 million in New Notes through a concurrent financing to repay the remaining Old Notes and cover associated fees and expenses.
About PL Developments
Founded in 1988 and headquartered in Westbury, NY, PL Developments is a developer, manufacturer, packager, and distributor of consumer healthcare products. PLD operates pharmaceutical manufacturing facilities across the United States, encompassing approximately 2 million square feet of real estate and employing 1,800 people. PLD primarily serves US retailers with store brands and Consumer Packaged Goods (CPG) firms with national brands, offering an assortment of more than 450 unique products across several healthcare categories.
