Lannett (LCI) Will Review FY16 Projects Due to Market Weakness

Lannett Company, Inc. (NYSE: LCI) announced that, as others in its industry have recently reported, it is experiencing unanticipated market softness. As a result, the company is reviewing its sales projections for fiscal 2016. Following the review and if appropriate, the company expects to issue updated fiscal 2016 full-year guidance by the end of next week.

"We are reviewing a number of factors that have or are expected to impact our business in the near-term, the net effect of which we expect to be modest," said Arthur Bedrosian, chief executive officer of Lannett Company. "These factors include a mild flu season, some reduction in sales of our authorized generic Tussionex® product due to a change by the FDA in the classification of hydrocodone combination products to Schedule II and additional competition for our Ursodiol product, as well as delays to certain anticipated product launches in our fiscal 2016 third and fourth quarters.

"At the same time, our actions to generate synergies, streamline operations, improve efficiencies and significantly reduce costs are on track and the integration of Kremers Urban (KU) is progressing according to plan. In addition, we have thus far replaced in excess of 30% of the revenues lost as a result of a key customer transitioning its purchases of certain product lines from KU. Accordingly, we believe it prudent to reassess our expectations and guidance for the fiscal 2016 full year."

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