Lannett (LCI) Misses Q3 EPS by 14c, Revenues Miss; Offers FY21 Revenues Outlook

Lannett (NYSE: LCI) reported Q3 EPS of ($0.18), $0.14 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $112.37 million versus the consensus estimate of $116.11 million.

"In recent months, we have significantly advanced a number of strategic initiatives," said Tim Crew, chief executive officer of Lannett. "In April, we successfully completed a transaction to refinance our debt, using the proceeds to retire the outstanding Term Loan B balance of approximately $540 million that was set to mature in November of next year. As a result, we have extended the maturity of our debt to 2026 from 2022, which is after several high-value pipeline assets are expected to be commercialized. Moreover, we improved our free cash flow, by approximately $50 million in the first year alone, which we plan to use, in part, to support our growth initiatives.

"We were pleased with our fiscal 2021 third quarter financial results. While net sales were slightly lower than our expectations, adjusted gross margin, adjusted EBITDA and adjusted earnings per share were higher than we anticipated. Selling, general and administrative expenses were lower compared with the same quarter last year. Moreover, we ended the quarter with more than $80 million in cash, up from approximately $34 million at December 31, 2020.

"Looking ahead, we expect to launch a number of products in the coming months, and we continue to advance our durable, large market opportunity assets. Last month we announced the submission of an Abbreviated New Drug Application (ANDA) for generic ADVAIR DISKUS®, an inhalation drug device combination product. Also, the pivotal clinical trial has been initiated for generic Flovent Diskus®, another key respiratory product in our pipeline. And, last but not least, in the third quarter we added to our pipeline another potentially large and durable biosimilar asset, fast acting insulin aspart."

GUIDANCE:

Lannett sees FY2021 revenue of $480-500 million, versus the consensus of $492.84 million.

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

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