Lannett Company Inc (NYSE:LCI) reported Q2 FY22 sales of $86.51 million, missing the consensus of $90.21 million. Sales decreased 35% Y/Y as Lannett faced a highly competitive pricing environment.
- Adjusted gross margin for Q4 compressed to 11% from 23% a year ago.
- The company posted an adjusted operating loss of $(8.9) million, a turnaround from an operating income of $13.37 million a year ago.
- Lannett posted an adjusted EPS loss of $(0.39) compared to EPS of $0.08 and missing the consensus of $(0.32).
- "For the quarter, ongoing and increasing competitive pricing pressure across our product offering negatively impacted net sales and gross margin," said Tim Crew, CEO.
- "While we anticipate this pricing environment to persist over the near term, we continue to execute on our core strategies to build our product pipeline, advance our durable insulin and respiratory assets and reduce costs throughout the organization," he added.
- Guidance: Lannett revised FY22 guidance down to reflect a delay in the expected launch of a key product, fewer new supply requests anticipated for the balance of this year, and a competitive environment for generic products.
- For FY22, Lannett sees sales of $335 million - $360 million, down from previous guidance of $370 million - $400 million, well below the Wall Street estimate of $413.19 million.
- It expects an adjusted gross margin of 14% - 15%, down from approximately 19% - 21%, with adjusted EBITDA of $0 - $8 million, down from $22 million - $32 million.
- Price Action: LCI shares closed lower by 1.39% at $1.42 on Thursday.
