By a News Reporter-Staff News Editor at Pharma Business Week -- Lannett Company, Inc. (NYSE: LCI) reported financial results for its fiscal 2014 fourth quarter and full year ended June 30, 2014 (see also Pharmaceutical Companies).
For the fiscal 2014 fourth quarter, net sales doubled to $80.6 million from $40.2 million in last year's fourth quarter. Gross profit more than tripled to $55.9 million, or 69% of net sales, from $15.2 million, or 38% of net sales, for the fiscal 2013 fourth quarter. Research and development (R&D) expenses increased to $6.6 million from $3.7 million for the fiscal 2013 fourth quarter. Selling, general and administrative (SG&A) expenses were $12.0 million, compared with $5.8 million in the same quarter of the prior year. Operating income rose dramatically to $37.4 million from $5.7 million for the fourth quarter of fiscal 2013. Net income attributable to Lannett Company grew more than six-fold to $23.5 million, or $0.64 per diluted share, from $3.6 million, or $0.12 per diluted share.
"The fiscal 2014 fourth quarter represents the seventh consecutive quarter of record net sales, as well as the tenth consecutive quarter in which net sales and adjusted EPS exceeded the comparable prior-year period," said Arthur Bedrosian, president and chief executive officer of Lannett. "Our excellent financial results are due, in large part, to our loyal and supportive customers, as well as our dedicated employees, who are committed to making Lannett a formidable force in the generic drug industry.
"Looking ahead, we have recently received approvals for Oxycodone Hydrochloride, Diazepam and Codeine Sulfate, completed two product acquisitions and formed strategic relationships, all of which will further expand our offering. We also have a robust pipeline with 23 ANDAs, including four with a Paragraph IV certification, currently pending at the FDA and several product applications nearing submission. Importantly, our plans also include the continued and significant investment in R&D to drive future growth."
For the full year of fiscal 2014, net sales rose 81% to $273.8 million from $151.1 million for fiscal 2013. Cost of sales for fiscal 2014 included a non-recurring, pre-tax charge of $20.1 million related to the previously announced contract extension with Jerome Stevens Pharmaceuticals, Inc. (JSP) to continue as the exclusive distributor in the United States of three JSP products. Accordingly, gross profit was $154.4 million, or 56% of net sales. Excluding the JSP contract renewal charge, gross profit was $174.5 million, or 64% of net sales, compared with $57.4 million, or 38% of net sales, for fiscal 2013. R&D expenses increased to $27.7 million, compared with $16.3 million for fiscal 2013. SG&A expenses increased to $38.6 million, compared with $22.4 million in the prior year. Operating income was $88.1 million. Excluding the JSP contract renewal charge, operating income grew to $108.2 million from $18.8 million in fiscal 2013.
Keywords for this news article include: Investment and Finance, Lannett Company, Lannett Company Inc., Pharmaceutical Companies, Pharmaceutical Company.
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