LCI again

04-Nov-15 16:18 ET
Lannett reports Q1 EPS and revs in-line with guidance provided on Oct 28  (46.16 -0.72)
  • Reports Q1 (Sep) earnings of $0.99 per share, excluding non-recurring items, in-line with the single analyst estimate of $0.99 and guidance provided October 28 of $0.98-0.99; revenues rose 14.0% year/year to $106.43 mln vs the $106.16 mln single analyst estimate and guidance of ~$106 mln.
05-Nov-15 05:36 ET
Lannett discloses update on pending acquisition of Kremers Urban Pharmaceuticals regarding transition of one of its customers  (46.16)

In connection with Lannett’s pending acquisition of Kremers Urban Pharmaceuticals Inc, UCB, S.A. and UCB Manufacturing, Inc., the sellers of KUPI, have informed Lannett that a key customer has taken steps to transition its purchases of certain product lines from KUPI. These product lines represented approximately $87 million of KUPI’s revenues and approximately $45 million of Lannett’s Pro Forma Combined Adjusted EBITDA for the twelve months ended June 30, 2015. Lannett’s preliminary plan to mitigate the potential impact of this action is focused on a combination of additional cost saving measures and obtaining additional customers to replace the revenue from this customer.

  •  Lannett continues to expect the acquisition of KUPI to be accretive in the first year following the closing.

LCI reported inline yesterday but announced this morning that they are losing some business from a proposed acquisition. Bear in mind they do not yet own this company and it is not a loss of current income, but it is a loss of future earnings.

Trailing earnings are 4.08 with a 15 % growth rate.

Support levels are 37.65–35.05– and 33.75.

Bought this A.M.  at 38.11

I don’t know what the low will be but LCI will bounce by Monday.

Leave a Reply