Bedrosian added, “The recently completed contract extension with Jerome Stevens will allow us to continue to market several important medications that have been key drivers of our positive financial performance. Moreover, last month we successfully closed on a stock offering in which we received net proceeds of approximately $71.5 million. We intend to use the net proceeds from this offering for potential acquisitions, strategic partnerships and general corporate purposes.”
Guidance for Fiscal 2014
Based on Lannett’s current outlook, the company revised upward its financial guidance for the fiscal 2014 full year as follows:
- Net sales in the range of $245 million to $255 million, up approximately 35% from previous guidance of $181 million to $186 million;
- Gross margin as a percentage of net sales of approximately 57% to 59%, up 15 percentage points from 43% to 44%;
- R&D expense in the range of $27 million to $29 million, up from $24 million to $26 million;
- SG&A expense ranging from $35 million to $37 million, up from $28 million to $30 million;
- The full year effective tax rate to be in the range of 36% to 38%, up from 34% to 36%;
- Weighted average common shares outstanding for fiscal 2014 to be approximately 35.4 million, the increase reflecting the impact of the recently completed public offering of 4.3 million shares; and,
- Capital expenditures in fiscal 2014 are expected to be in the range of $28 million to $32 million, unchanged from previous guidance, which includes the purchase and partial fit-out of a new facility.
The company noted that its guidance for fiscal 2014 does not include the impact of the JSP contract extension, which resulted in the non-recurring pre-tax charge of $20.1 million recorded in the first quarter of fiscal 2014.