Lannett Com (NYSE:LCI)
Lannett Company, Inc. (LCI), a company that manufactures, packages, markets and distributes generic pharmaceutical products yesterday reported their fiscal fourth quarter 2016 financial results. Lannett reported first quarter earnings $0.73 per share which beat analyst expectations of $0.60 per share. Lannett reported first quarter revenues of $168.9 million which beat analyst expectations of $161.8 million.
Lannett Company, Inc. CEO’s Comments
“Our record net sales for the fourth quarter were driven by the addition of KU’s operations and higher sales of key products,” said Arthur Bedrosian, chief executive officer of Lannett. “Today’s announcement builds upon our recent positive momentum and caps a number of significant successes over the last six months. These achievements include refinancing a sizable portion of debt that will result in savings of approximately $170 million in cash interest over the life of the loans, expanding and advancing our robust pipeline, receiving a number of product approvals and making solid progress on our cost reduction program. All of which, combined with our increased size and scale resulting from our acquisition strategy, gives us great confidence in Lannett’s future.” PR Newswire
LCI Technical Analysis
LCI opened trading yesterday at $31.65 which was up from the previous days trading of $31.43. LCI closed trading yesterday at $32.32 and spiked up after market to $37.13, equivalent to a 15% increase from the closing price. Taking a look at the daily chart we can see the last time LCI traded above these levels we have to go back to January 6th when it traded at highs of $38.15. Taking a closer look at the daily chart we can see that LCI has been in an upward trend dating back to May 6th when it traded at $17.81. LCI has a float of 29.09 million shares and traded 1.38 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see LCI open trading on Wednesday above $35.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Lannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of branded pharmaceutical products in the United States. It offers solid oral, extended release, topical, nasal, and oral solution finished dosage forms of drugs that address a range of therapeutic areas, as well as ophthalmic, patch, foam, buccal, sublingual, soft gel, and injectable dosages. The company provides its products for various medical indications comprising glaucoma, muscle relaxant, migraine, anesthetic, congestive heart failure, thyroid deficiency, dryness of the mouth, gout, bronchospasms, hypertension, and gallstone. It also manufactures active pharmaceutical ingredients. Lannett Company, Inc.
markets its products under the Diamox, Lioresal, Fioricet, Fiorinal, Fiorinal w/ Codeine #3, Lanoxin, Levoxyl/Synthroid, Salagen, Benemid, Brethine, Dyazide, and Actigall brands. The company sells its pharmaceutical products to generic pharmaceutical distributors, drug wholesalers, chain drug retailers, private label distributors, mail-order pharmacies, other pharmaceutical manufacturers, managed care organizations, hospital buying groups, governmental entities, and health maintenance organizations. It has development and supply agreements with Azad Pharma AG, Aenova of Switzerland, Pharma 2B, the GC Group of Israel, HEC Pharm Group, and Sunshine Lake LLC, as well as with Jerome Stevens Pharmaceuticals, Inc., Cerovene, Symplemed, Inc., and Summit Bioscience LLC. The company was founded in 1942 and is based in Philadelphia, Pennsylvania.