LANNETT REPORTS FISCAL 2O1O FOURTH QUARTER, FULL YEAR FINANCIAL RESULTS
Philadelphia, PA - September 13, 2010 - Lannett Company, Inc. (NYSE AMEX: LCD today reported financial results for the fiscal 2010 fourth quarter and full year ended June 30, 2010.
For the 2010 full year, net sales increased to $125 .2 million from $ 1 19.0 million for fiscal 2009 . Gross profit was $41.3 million compared with $45.2 million for the same period in the prior year. Research and development (R&D) expenses increased to $11.3 million from $8.4 million in the prior year. Selling, general and administrative (SG&A) expenses decreased to $17.4 million from $26.I million in fiscal 2009. SG&A expenses in fiscal 2009 included professional fees of $6.5 million related to the OB Natal One patent challenge that was settled in March2009. Operating income grew to $13.0 million compared with $10.8 million in fiscal 2009. Net income was $7.8 million, or $0.31 per diluted share, compared with $6.5 million, or 80.27 per diluted share, for the prior year.
"Strong sales of our pain management drugs in the latter part of 2AT0 combined with increased sales of certain base business pharmaceutical products drove our topline growth in fiscal 2010,- said Arthur Bedrosian, president and chief executive officer of Lannett. "Looking ahead, competitive pricing for certain products combined with the FDA's decision ordering Lannett, and others, to cease manufacturing Morphine Sulfate, will negatively impact our business for the balance of calendar year 2010. However, we are optimistic about receiving FDA approval in the near future of our New Drug Application for Morphine Sulfate and currently expect to re-launch the drug in early 2011. Moreover, we continue to make progress vertically integrating and increasing production of other active pharmaceutical pain management products and have a strong pipeline, including 21 product applications currently pending at the FDA."
For the fourth quarter of fiscal 2010, net sales were $33.S million compared with $35.4 million for the fourth quarter of fiscal 2009. Gross profit was $11.3 million compared with $13.6 million for the same period in the prior year. R&D expenses decreased to $2.1 million from $2.7 million in the 2009 fiscal fourth quarter. SG&A expenses decreased to $5.2 million from $6.9 million in the same quarter of the prior year. SG&A expenses in the fourth quarter of fiscal 2009 included professional fees of $81 8,000 related to the OB Natal One patent challenge. Operating income rose to $4.3 million compared with $3.9 million in the fiscal 2009 fourth quarter. Net income was $2.8 million, or $0.11 per diluted share, compared with $2.4 million, or $0.10 per diluted share, for the prior year fourth quarter.
Conference Call Information and Forward-Looking Statements
On September 13, 2010, the company will host a conference call at 4:30 p.m. ET to review its results of operations for the 2010 fiscal year ended June 30, 2010. The conference call will be available to interested parties by dialing 800-447-0521 from the U.S. or Canada, or 847413-3238 fiom intemational locations, passcode 27892211,. The conference call will also be available through a live audio Intemet broadcast al www.larmett.com. The call will be archived and accessible at this site for approximately two weeks.
Discussion during the conference call may include forwardJooking statements regarding such toprcs 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 ofindications. For more information, visit the company's website at www.lannett.com.
This news release contqins certain statements ofa forward-looking nature relqting to future events or J ture business performance. Any such statements, including, but not limited to, iwesting in R&D to add to the company's gowing product ofering andfwther diversfu its portfolio, whether expressed or implied, are subject to risks and uncefiainties which can cause actual results to differ materially lrom those currently anticipated due to a number of factors which include, but are not limited to, the difficulty in predicting the timw or outcome ofFDA or other regulatory approvals or actions, the ability to successfully commercialize products upon approva| Lannett's estimated or a ticipatedfuturefinancial resuks, future iwentory levels, future competition or pricing funre levels of operating acpenses, produa development eforts or performonce, and other riskfactors discassed inthe company's Form l0-K and other docaments Jiled with the Securities and Exchqnge Commission from time to time. Theseforuard-looking statements represent the company's judgment as ofthe d.ate ofthis news rclease. The company disclaims any intent or obligation to Wdate theseforwqrd-looking statements