Lannett Provides Business Update

14 Mar, 2016, 06:00 ET from Lannett Company, Inc.

PHILADELPHIA, March 14, 2016 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today announced that, as others in its industry have recently reported, it is experiencing unanticipated market softness. As a result, the company is reviewing its sales projections for fiscal 2016. Following the review and if appropriate, the company expects to issue updated fiscal 2016 full-year guidance by the end of next week.

"We are reviewing a number of factors that have or are expected to impact our business in the near-term, the net effect of which we expect to be modest," said Arthur Bedrosian, chief executive officer of Lannett Company. "These factors include a mild flu season, some reduction in sales of our authorized generic Tussionex® product due to a change by the FDA in the classification of hydrocodone combination products to Schedule II and additional competition for our Ursodiol product, as well as delays to certain anticipated product launches in our fiscal 2016 third and fourth quarters. 

"At the same time, our actions to generate synergies, streamline operations, improve efficiencies and significantly reduce costs are on track and the integration of Kremers Urban (KU) is progressing according to plan. In addition, we have thus far replaced in excess of 30% of the revenues lost as a result of a key customer transitioning its purchases of certain product lines from KU. Accordingly, we believe it prudent to reassess our expectations and guidance for the fiscal 2016 full year."

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 statements, including, but not limited to, realizing the expected benefits of optimizing operations, enhancing efficiencies or significantly reducing costs, 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, including acquired products, and 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.

 

Contact:

Robert Jaffe

Robert Jaffe Co., LLC

(424) 288-4098

 

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SOURCE Lannett Company, Inc.



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