PHILADELPHIA, Aug. 20, 2018 /PRNewswire/ -- Lannett Company,
Inc. (NYSE: LCI) today said that its distribution agreement with
Jerome Stevens Pharmaceuticals (JSP), which expires on March 23, 2019, will not be renewed.
"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.
"While we are disappointed, and intend to redouble our
continuing efforts to explore options for addressing our capital
structure, we have been preparing for this contingency, knowing
that this outcome was a possibility. Accordingly, we have
been focused on improving our already strong base commercial
business of more than 100 currently marketed products. Since
the beginning of this year, we added new products to our offering
and expanded our customer base. We continued to streamline
our operations. Specifically, we successfully launched eight
new products in the first seven months of calendar 2018, which we
estimate will add net sales in excess of $50
million in fiscal 2019, and in addition to our launches, we
completed several transactions to add more than 25 market-ready or
near-market-ready product lines to our pipeline. Importantly,
we continue to make excellent progress advancing other previously
approved products toward launch and plan to commence marketing a
substantial number of them in the coming months and throughout
fiscal 2019.
"In addition, in our current fiscal year, we have already
submitted four drug applications associated with two product
families, implemented a restructuring plan at our Cody Laboratories
subsidiary and streamlined our product distribution
function.
"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."
Preliminary Fiscal 2018 Fourth Quarter and Full Year
Financial Results
For the fiscal 2018 fourth quarter, net sales are expected to be
approximately $171 million, GAAP loss
per share attributable to Lannett to be between $0.30 and $0.32 and
Adjusted earnings per diluted share attributable to Lannett to be
between $0.62 and $0.64. For the prior-year fourth quarter,
the company recorded net sales $139.1
million, GAAP net income attributable to Lannett of
$5.7 million, or $0.15 per diluted share, and Adjusted net income
attributable to Lannett of $15.1
million, or $0.40 per diluted
share.
For the fiscal 2018 full year, net sales are expected to be
approximately $685 million, GAAP
earnings per diluted share attributable to Lannett to be between
$0.73 and $0.75 and Adjusted earnings per diluted share
attributable to Lannett to be between $3.08 and $3.10.
For the fiscal 2017 full year, net sales were $637.3 million, GAAP net loss attributable to
Lannett was $0.6 million, or
$0.02 per share, and Adjusted net
income attributable to Lannett was $107.9
million, or $2.86 per diluted
share.
Commenting on the company's preliminary financial results for
the fiscal 2018 fourth quarter and full year, Crew said, "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."
Lannett will report full financial results for its fiscal 2018
fourth quarter and full year on Tuesday,
August 28, 2018, after the market closes. Lannett
management will host a conference call that same afternoon at
4:30 p.m. ET to review the company's
performance and answer questions.
Special Conference Call Information, and Forward-Looking
Statements
Today at 8 a.m. ET, the company will
host a conference call to discuss today's announcement. The
conference call will be available to interested parties by dialing
866-436-9172 from the U.S. or Canada, or 630-691-2760 from international
locations, passcode 47456215. The call will be broadcast via
the Internet at www.lannett.com. Listeners are encouraged to
visit the website at least 10 minutes prior to the start of the
scheduled presentation to register, download and install any
necessary audio software. A playback of the call will be
archived and accessible on the same website for at least three
months.
Discussion during the conference call may include
forward-looking statements regarding such topics as, but not
limited to, the company's financial status and performance,
regulatory and operational developments, and any comments the
company may make about its future plans or prospects in response to
questions from participants on the conference call.
About Lannett Company, Inc.:
Lannett Company, founded in 1942, develops, manufactures, packages,
markets and distributes generic pharmaceutical products for a wide
range of medical indications. For more information, visit the
company's website at www.lannett.com.
This news release contains certain statements of a
forward-looking nature relating to future events or future business
performance. Any such statement, including, but not limited
to, the impact of the termination of our agreement with Jerome
Stevens Pharmaceuticals on our future business performance,
successfully commercializing recently launched products and other
products in the company's portfolio, acquiring additional products,
receiving FDA approvals for owned or partnered product applications
and remaining within the company's debt financial covenants,
whether expressed or implied, is subject to market and other
conditions, and subject to risks and uncertainties which can cause
actual results to differ materially from those currently
anticipated due to a number of factors which include, but are not
limited to, the risk factors discussed in the Company's Form 10-K
and other documents filed with the SEC from time to time, including
the prospectus supplement related to the proposed offering to be
filed with the SEC. These forward-looking statements
represent the Company's judgment as of the date of this news
release. The Company disclaims any intent or obligation to
update these forward-looking statements.
Contact:
|
Robert
Jaffe
|
|
Robert Jaffe Co.,
LLC
|
|
(424)
288-4098
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SOURCE Lannett Company, Inc.