Lannett Company, Inc. (NYSE: LCI) rose Monday, amid word Lannett will receive $50-million upfront payment from amneal pharma for exclusive distribution of Levothyroxine sodium tablets.
The Philadelphia-based Lannett said that, under the agreement, Amneal will be Lannett's sole customer for Levothyroxine Sodium beginning December 1, 2018 through March 23, 2019, and will re-sell the products to its customers.
As mentioned, Lannett will receive an upfront payment of $50 million, while other terms of the transaction were not disclosed.
Said CEO Tim Crew, "This agreement benefits all parties, including and importantly patients and customers who can be assured of a definitive transition and supply plan for this important medication. For Lannett, this transaction guarantees $50 million of gross profit, which exceeded our previous projections for the 16-week period."
Last week, Lannett announced earnings for the first quarter, in which net sales were $155.1 million compared with $155.0 million for the first quarter of fiscal 2018.
Adjusted operating income was $39.6 million compared with $50.7 million for the prior-year first quarter. Adjusted interest expense was $16.9 million compared with $16.4 million for the first quarter of fiscal 2018.
Adjusted income tax expense was $5.9 million compared with $12.5 million in the prior-year period.
Adjusted net income was $16.9 million, or $0.44 per diluted share, compared with $22.7 million, or $0.60 per diluted share, for the fiscal 2018 first quarter.
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical indications
Lannett shares opened Monday up 34 cents, or 6.3%, to $5.70
