Lannett Company, Inc. (LCI) has seen a decrease of 19.72% in the aftermarket because the company announced fiscal 2022 second-quarter results. However, the last trading session closed at $1.42 with a decrease of 1.39%.
Fiscal 2022 Second Quarter Results – Revealed by LCI!
LCI announced fiscal 2022 second-quarter results on 3rd February 2022. The company experienced net sales of $86.5 million with gross profit that came out to be around $5.7 million. Not only this but the adjusted interest expense rose to $12.9 million. The negative adjusted EBITDA totaled $1.0 million. Last but not the least, the net loss reported was $81.1 million as compared to the $171.9 million from fiscal 2021.
What’s Next?
Net sales and gross margin were adversely affected during the quarter. It was due to continued and increasingly competitive pricing pressure across the product portfolio. While LCI expects this price environment to endure in the short term, the company is continuing to implement the basic strategy to expand the product pipeline, develop durable insulin and respiratory assets, and minimize costs across the board.
Thinking forwards, the company has reduced the guidelines to reflect, among other things, a specific product optimal control effort, a postponement in the expected launch of a product line, considerably fewer supply requests expected for the rest of the year, and the competitive landscape for an amount of the oral similar medicines, as well as the aforementioned competitive environment. Lastly, LCI has a strong cash position of over $98 million as of December 31, 2021.
Review of Investigational New Drug by LCI– What is it?
LCI announced on 21st January 2022 that they have received the notification from FDA about the completion of the review of the Investigational New Drug (IND) application for biosimilar insulin glargine. The company is on schedule to start dosing individuals later this quarter. If the research is effective, LCI plans to file a Biologics License Application (BLA) in early 2023. Not only this but if everything went smooth, they might start the marketing of their product in early 2024. Moreover, Biosimilar insulin glargine is a vital product in the long-term development pipeline, and the company is excited to provide this critical biosimilar medicine to diabetic patients.
