Lannett (LCI) issues guidance

 

Lannett says distribution agreement with Jerome Stevens Pharmaceuticals will not be renewed, offers prelim Q4 results 

• "The Steinlauf family advised us this past Friday evening that they will not renew our agreement to distribute three JSP products: Butalbital, Aspirin, Caffeine with Codeine Phosphate Capsules USP, Digoxin Tablets USP and Levothyroxine Sodium Tablets USP, upon its expiration in March 2019," said Tim Crew, chief executive officer of Lannett. "The family has assured us of a continuous supply of the products through March of next year. These products remain valuable assets for us and are expected to significantly contribute to our financial performance in fiscal 2019."
• "Looking ahead, our team is actively evaluating a number of additional potential transactions to add even more products to our portfolio to grow revenues and profits, and diversify our business. We have more than 20 owned and partnered drug product applications currently pending at the FDA, and anticipate a significant number of product approvals in fiscal 2019. We also expect to expand restructuring initiatives to further reduce expenditures. Finally, we are evaluating the impact of this contract ending in March 2019 on our goodwill."
• Prelim Q4 results:
  • Co sees Q4 Adj-EPS of $0.62-0.64 vs $0.66 S&P Capital IQ Consensus Estimate; sees revs of ~$171 mln vs $173.09 mln S&P Capital IQ Consensus Estimate
  • "Our financial performance was within our expected range, with revenue and adjusted net income solidly improved over last year. And, based on the preliminary results, we remain well within our debt financial covenant, and we expect to continue to meet these requirements throughout fiscal 2019."