Generic drug manufacturer Lannett’s (NYSE: LCI) stock surged more than 15% after it reported Q4 earnings results. The company’s bottom line and top line results exceeded the market’s expectations. On a non-GAAP basis, Lannett earned 37 cents per share on revenue of $134 million for the final quarter of 2019.
Lannett stock, which ended down 3.21% at $6.03 today, jumped about 18% immediately in the extended trading session after the earnings announcement. Analysts had projected Lannett to post earnings of 21 cents per share on revenue of $121.88 million for the fourth quarter.
On a GAAP basis, net loss was $7.6 million or $0.20 per share in the recently ended quarter compared with a loss of $11.4 million or $0.30 per share in the fiscal 2018 fourth quarter.
“Financial results for our fiscal 2019 fourth quarter, the first full quarter of the fiscal year without sales of Levothyroxine, exceeded or were at the upper end of our expectations,” said CEO Tim Crew.
For fiscal 2020, the company expects revenue to be in the range of $525 million to $545 million. “Looking ahead, we expect to launch a number of new products that will continue to build our business in the near term and have begun adding products to our pipeline that have significant potential in the medium term and beyond,” added Crew.
In early July, FDA cleared the path for the continuing review of Lannett’s New Drug Application for cocaine hydrochloride topical solution. The Philadelphia, Pennsylvania-based company expects to receive the approval in early 2020.
Earlier today, Lannett entered into a three-year advisory services agreement with its strategic alliance partner, Cediprof, a wholly-owned subsidiary of privately-held Neolpharma Group.
Under the new agreement, Lannett will advise on a wide array of matters broadly related to assisting Cediprof and its affiliated entities with their efforts to further develop and commercialize products for the U.S. generic market. Lannett will receive an advisory fee for its services.
Lannett shares have gained 22% so far this year and 18% in the past 52 weeks.