Lannett (LCI) Reports In-Line Q4 EPS, Revenues Miss; Offers FY19 Revenue Outlook

Lannett (NYSE: LCI) reported Q4 EPS of $0.64, in-line with the analyst estimate of $0.64. Revenue for the quarter came in at $170.91 million versus the consensus estimate of $171.45 million.

"For both the fiscal 2018 fourth quarter and full year, our revenue and adjusted net income solidly improved over last year, and our overall financial performance was within our full-year guidance," said Tim Crew, chief executive officer of Lannett. "Operationally, in the second half of fiscal 2018, we completed several transactions acquiring more than 25 market-ready or near-market-ready product lines that have added to our pipeline and in-licensing several more. In addition, we implemented a restructuring plan at our Cody Laboratories subsidiary and began the consolidation of our product distribution function. Importantly, we improved the pace of new product launches and these products were well received by our customers.

"As we announced last week, the company was informed that its contract with Jerome Stevens Pharmaceuticals (JSP) will not be renewed upon its expiration on March 23, 2019. The company has been assured of a continuous supply of the products covered under the agreement through March of next year, and we expect these products to significantly contribute to our financial performance in fiscal 2019.

"Our overarching goal is to fortify our business as we build for the future, while also preparing for the impact of the eventual expiration of the JSP contract. The eight products we have launched since January 1st of this year are expected to contribute more than $50 million to revenues in the current fiscal year. Given our large pool of approved but not yet launched products and filed drug product applications awaiting approval at the FDA, our goal is to continue this recent rate of launching products. Moreover, we will implement a number of new cost reduction initiatives, which we estimate will generate substantial cost savings in fiscal 2019.

"To summarize, our path forward is clear and includes launching products already under our control, increasing our product offering through strategic relationships and product development, and lowering our costs. We believe we are making progress on all of these fronts."

GUIDANCE:

Lannett sees FY2019 revenue of $580-610 million, versus the consensus of $635 million.

For earnings history and earnings-related data on Lannett (LCI) click here.

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