Lannett Company, Inc. (LCI) is down 3.19% in the pre-market trading session at the price of $3.95 after the release of fiscal 2021 fourth quarter and full-year financial results.
Fourth Quarter, Full-Year 2021 Financial Results
On 25th August 2021, LCI reported financial results for the fourth quarter and full-year ended 30th June 2021. For the fiscal 2021 fourth quarter, net sales were $106.0 million. Net sales were $137.9 million for the fourth quarter of 2020. Gross profit was $22.7 million or 21% of net sales for the fourth quarter of 2021. For the same quarter of 2020, gross profit was $39.6 million or 29% of net sales. Net loss was $177.9 million or $4.50 per share in the fourth quarter of 2021. Net loss of $9.7 million or $0.25 per share, reported for the fourth quarter of fiscal 2020. Income tax expense was $129.2 million, primarily attributable to the impact of the valuation allowance recorded against the company’s deferred tax assets. The income tax benefit was $10.1 million for the previous year fourth quarter.
LCI reported net sales of $478.8 million for the fiscal year 2021. For the year 2020, net sales were $545.7 million. Gross profit for the year 2021 was $75.6 million, or 16% of total net sales. Gross profit of $165.2 million or 30% of total net sales, reported for the fiscal 2020 full year. Net loss was $363.5 million or $9.23 per share for the fiscal year 2021. The net loss of $33.4 million or $0.86 per share, reported for fiscal 2020. The income tax expense was $60.6 million for 2021. It has resulted from the valuation allowance recorded against the company’s deferred tax assets. An income tax benefit of $15.3 million, reported for the year 2020.
LCI Signed Exclusive Distribution Agreement
On 29th July 2021, LCI published that it had entered into an exclusive U.S. commercialization agreement with Respirent Pharmaceuticals Co. Ltd. The agreement was signed for a therapeutically equivalent generic of Spiriva Handihaler. The 10-year term of the agreement begins upon distribution of the product. According to IQVIA, the U.S. sales of Spiriva Handihaler were $1.5 billion for the 12 months ending May 2021.
CEO of LCI, Tim Crew, commented that they continue to add drug and device combination respiratory medications to their pipeline. These products require technical expertise, specialized manufacturing, and financial commitment. Therefore, such products provide durable sales opportunities with relatively fewer competitors. With generic Spiriva Handihaler, their strategic relationship with Respirent now includes three inhaler products. All of them have the potential to be a meaningful contributor to the company’s financial performance, he added.