Lannett Company, Inc.
) reported second quarter fiscal 2013 earnings of 10 cents per
share, above the Zacks Consensus Estimate of a loss of 3 cents
and the year-ago earnings of 2 cents per share. Earnings were up
year over year primarily due to higher revenues.
Lannett's revenues in the reported quarter increased 32% year
over year to $36.6 million. Revenues in the second quarter were
above the Zacks Consensus Estimate of $33 million. Net sales
during the quarter were up primarily due to increased sales in
the company's thyroid deficiency category.
Quarter in Details
Lannett's revenues during the second quarter of fiscal 2013
consisted of sales from thyroid deficiency, cardiovascular, pain
management, antibiotic, gallstone, obesity, migraine and glaucoma
categories among others.
The thyroid deficiency category was the largest contributor
during the quarter, bringing in $14.5 million, or 40% of the
company's total net sales. Thyroid deficiency was followed by
revenues from cardiovascular and pain management, which
contributed $7.3 million (20% of net sales) and $4.2 million (12%
of net sales) respectively.
Lannett reported research and development (R&D) expenses
of $3.6 million during the quarter, up 42.1% year over year. The
increase in R&D expenses during the quarter was primarily
attributable to higher expenses related to pipeline
Selling, general and administrative (SG&A) expenses in the
quarter came in at $5.2 million, up 16.7% year over year due to
higher employee related costs.
Fiscal 2013 Outlook Upped
Apart from releasing its financial results, Lannett also
revised its guidance for fiscal 2013. The company raised its
fiscal 2013 net sales guidance to the range of $140-$142 million
from the previous range of $132-$136 million. The Zacks Consensus
Estimate of $139 million is the company's new guidance range.
Lannett also revised its R&D and SG&A expenses
guidance. The company now expects R&D expenses to be within
$17 million and $18 million (previous: $18-$20 million) and
SG&A expense to be in the range of $24-$25 million (previous
range: $21-$23 million).
Lannett currently carries a Zacks Rank #1 (Strong Buy). Other
players in the generic market, such as
Pernix Therapeutics Holdings, Inc.
) carry a Zacks Rank #2 (Buy). Meanwhile, biopharma stock,
) has a Zacks Rank #1 (Strong Buy).
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