Lannett Company, Inc. (LCI) reported second quarter fiscal 2013 earnings of 10 cents per share, above the Zacks Consensus Estimate of a loss of 3 cents and the year-ago earnings of 2 cents per share. Earnings were up year over year primarily due to higher revenues. Lannett's revenues in the reported quarter increased 32% year over year to $36.6 million. Revenues in the second quarter were above the Zacks Consensus Estimate of $33 million. Net sales during the quarter were up primarily due to increased sales in the company's thyroid deficiency category.
Quarter in Details
Lannett's revenues during the second quarter of fiscal 2013 consisted of sales from thyroid deficiency, cardiovascular, pain management, antibiotic, gallstone, obesity, migraine and glaucoma categories among others.
The thyroid deficiency category was the largest contributor during the quarter, bringing in $14.5 million, or 40% of the company's total net sales. Thyroid deficiency was followed by revenues from cardiovascular and pain management, which contributed $7.3 million (20% of net sales) and $4.2 million (12% of net sales) respectively.
Lannett reported research and development (R&D) expenses of $3.6 million during the quarter, up 42.1% year over year. The increase in R&D expenses during the quarter was primarily attributable to higher expenses related to pipeline development.
Selling, general and administrative (SG&A) expenses in the quarter came in at $5.2 million, up 16.7% year over year due to higher employee related costs.
Fiscal 2013 Outlook Upped
Apart from releasing its financial results, Lannett also revised its guidance for fiscal 2013. The company raised its fiscal 2013 net sales guidance to the range of $140-$142 million from the previous range of $132-$136 million. The Zacks Consensus Estimate of $139 million is the company's new guidance range.
Lannett also revised its R&D and SG&A expenses guidance. The company now expects R&D expenses to be within $17 million and $18 million (previous: $18-$20 million) and SG&A expense to be in the range of $24-$25 million (previous range: $21-$23 million).
Lannett currently carries a Zacks Rank #1 (Strong Buy). Other players in the generic market, such as Pernix Therapeutics Holdings, Inc. (PTX) and Mylan Inc. (MYL) carry a Zacks Rank #2 (Buy). Meanwhile, biopharma stock, Targacept Inc. (TRGT) has a Zacks Rank #1 (Strong Buy).