Lannett Company, Inc. (LCI) stock prices were up by 4.66% a of the market closing on May 27th, 2021, bringing the price per share up to USD$4.94.
Refinancing Debt
Recent months have seen LCI substantially advance various strategic initiatives, including the company’s successful completion of a transaction in April to refinance their debt. The capital generated from the transaction will be used to retire their Term Loan B that was set to expire in November of 2022, with a current outstanding balance of USD$540 million.
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Financial Outlook
LCI has consequently extended the maturity of their debt from 2022 to 2026, during which time the company forecasts the commercialization of several high-value pipeline assets. The company also improved its free cash flow by nearly USD$50 million in the first year alone. The capital available is planned to be allocated towards the support of further growth initiatives.
Improvements in Financial Performance
Despite marginally lower net sales than previously forecasted, the company was pleased to report financial reports for the third fiscal quarter of 2021 that did exceed expectations in some key areas. Adjusted gross margin, adjusted EBITDA, and adjusted earnings per share were some of the segments that reported higher growth than had been forecasted. Selling, general, and administrative expenses were lower than the numbers reported for the same time period of the prior year. Furthermore, the company reported a solid liquidity position at the end of Q3 2021 with USD$80 million in cash, up from roughly USD$34 million as of December 31st, 2020.
Recent Developments
LCI anticipates the launch of various products over the upcoming months, as the company continues to further its durable, large market opportunity assets. April of 2021 had seen LCI announce the submission of an Abbreviated New Drug Application (ANDA) for generic ADVAIR DISKUS, an inhalation drug device combination product. LCI has successfully initiated the pivotal clinical trial for generic Flovent Diskus, another key respiratory product in the company’s pipeline of products. Q3 2021 also saw the addition of a potentially large and durable biosimilar asset to the LCI pipeline, in the form of fast acting insulin aspart.
Future Outlook for LCI
Armed with a solid liquidity and a promising third quarter of the fiscal year 2021, LCI is poised to advance its product pipeline through to commercialization. The company is hopeful for a strong end to the fiscal year that will set the stage for the fiscal year 2022. Current and potential investors are confident in the company’s ability to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value.
