Lannett Reports Fiscal 2010 First-Quarter Financial Results

Fiscal 2010 First-Quarter Highlights:

  • Net sales up 23% to $31.4 million from $25.6 million in the fiscal 2009 first quarter
  • Gross profit grew to $11.5 million compared with $9.0 million in the first quarter a year ago
  • Net income increased to $2.9 million compared with $1.2 million in last year’s first quarter

Philadelphia, PA – November 9, 2009 – Lannett Company, Inc. (NYSE AMEX: LCI) today reported financial results for the fiscal 2010 first quarter ended September 30, 2009. For the first quarter of fiscal 2010, net sales grew to $31.4 million, compared with $25.6 million for the first quarter of fiscal 2009. Gross profit increased to $11.5 million from $9.0 million for the same period in the prior year. Net income more than doubled to $2.9 million, or $0.11 per diluted share, from $1.2 million, or $0.05 per share, for the prior year first quarter.

“Our first-quarter performance reflected strong sales of our key products and increases in our pain management products,” said Arthur Bedrosian, president and chief executive officer of Lannett. “In addition, our adherence to current Good Manufacturing Practice (cGMP) standards continue to help us capture market share from our competitors.”

“We increased our investment in research and development to add to our growing product offering and further diversify our portfolio,” Bedrosian added.

Research and development expenses for the fiscal 2010 first quarter were $3.0 million compared with $1.9 million in the comparable prior year period. Selling, general and administrative expenses declined to $3.8 million from $4.9 million in the same period last year.

Conference Call Information and Forward-Looking Statements
On Monday, November 9, 2009, the company will host a conference call at 4:30 p.m. ET to review its results of operations for the first quarter ended September 30, 2009. The conference call will be available to interested parties by dialing 800-446-1671 from the U.S. or Canada, or 847-413-3362 from international locations, passcode 25765256. The conference call will also be available through a live audio Internet broadcast at www.lannett.com. The call will be archived and accessible at this site for approximately two weeks.

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 and 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 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 statements, including, but not limited to, investing in R&D to add to the company’s growing product offering and further diversify its portfolio, whether expressed or implied, are 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 difficulty in predicting the timing or outcome of FDA or other regulatory approvals or actions, the ability to successfully commercialize products upon approval, Lannett’s estimated or anticipated future financial results, future inventory levels, future competition or pricing, future levels of operating expenses, product development efforts or performance, and other risk factors discussed in the company’s Form 10-K and other documents filed with the Securities and Exchange Commission from time to time. 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. 


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