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 PHILADELPHIA, Nov. 15 /PRNewswire/ -- Lannett Company, Inc. (OTC) ("Lannett"), a manufacturer and distributor of pharmaceutical products, announced sales and earnings for its first quarter ended Sept. 30, 1993 ("First Quarter 1994"). Lannett recorded a net loss of $463,793, or $.09 per share, for the First Quarter 1994, compared to a net loss of $501,049, or $.10 per share, for the first quarter ended Sept. 30, 1992 ("First Quarter 1993").
 In August 1991, Lannett temporarily suspended its manufacturing operations in order to upgrade its facilities and operations and to systematically review its abbreviated new drug applications, systems and procedures to determine their conformity to applicable governmental regulations and current standards in the industry. Lannett resumed manufacturing and distribution on a limited product basis in October 1992.
 Net sales for First Quarter 1994 increased approximately 323 percent to $102,691 from $24,282 in First Quarter 1993. Substantially all of Lannett's net sales during First Quarter 1993 were derived from the repackaging of products for other manufacturers. Lannett's net sales during First Quarter 1994 were derived primarily from the sale of Butalbital Compound Capsules, a generic version of Sandoz's Florinal(R).
 Although net sales for First Quarter 1994 increased more than threefold from First Quarter 1993, cost of goods sold decreased almost 11 percent from $245,262 during First Quarter 1993 to $218,366 during First Quarter 1994. While Lannett was not manufacturing product for shipment during First Quarter 1993, it was manufacturing and testing product, testing equipment, renovating its facilities and preparing to manufacture product for sale. As a result, it continued to incur costs and expenses allocable to cost of goods sold, including costs for inventory, payroll, maintenance, repairs and utilities. Cost of goods sold decreased due to greater efficiencies in production resulting from improvements to Lannett's facilities.
 Selling, general and administrative expenses increased approximately 15 percent from $207,181 in First Quarter 1993 to $238,946 in First Quarter 1994. Lannett anticipates that selling, general and administrative expenses will remain relatively constant until it is manufacturing and distributing five or six products.
 Three Months Ended Sept. 30
 1993 1992
 Net sales $102,691 $24,282
 Cost of goods sold 218,366 245,262
 Gross loss (115,675) (220,980)
 Selling, general and
 administrative 238,946 207,181
 Operating loss (354,621) (428,161)
 Other income (expenses), net (235) 3,876
 Interest expense (108,937) (76,764)
 (109,172) (72,888)
 Net loss (463,793) (501,049)
 Net loss per share (.09) (.10)
 Shares outstanding 4,966,128 4,966,128
 Lannett also recently announced that it received supplemental FDA approval to market a second major product, Primidone, a generic version of Wyeth-Ayerst's Mysoline(R), an anti-convulsant. Shipment of Primidone has begun. The product will be distributed primarily to retail pharmacies through distributors and wholesalers.
 Barry Weisberg, president of Lannett, said, "While we have been pleased with our sales of Butalbital, we expect existing orders and predicted sales of Primidone to greatly increase the probability Lannett will yield a profit in subsequent quarters. Lannett is an emerging generic company with a highly qualified work force and management team dedicated to excellence."
 -0- 11/15/93
 /CONTACT: Barry Weisberg, president of Lannett Company, 215-333-9000/

CO: Lannett Company, Inc. ST: Pennsylvania IN: MTC SU: ERN

KE-ML -- DE029 -- 4475 11/15/93 13:24 EST
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Publication:PR Newswire
Date:Nov 15, 1993

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