Lannett (LCINQ) 10-Q 7 Nov 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	LANNETT CO INC
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,335,406
Entity Central Index Key	0000057725
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 101,008	$ 140,249
Accounts receivable, net	173,109	164,752
Inventories	149,162	143,971
Prepaid income taxes	159
Assets held for sale	4,637	9,671
Other current assets	6,994	13,606
Total current assets	435,069	472,249
Property, plant and equipment, net	184,889	186,670
Intangible assets, net	427,253	411,229
Operating lease right-of-use assets	6,410
Deferred tax assets	110,396	109,305
Other assets	7,914	7,960
TOTAL ASSETS	1,171,931	1,187,413
Current liabilities:
Accounts payable	26,927	13,493
Accrued expenses	6,233	5,805
Accrued payroll and payroll-related expenses	12,347	19,924
Rebates payable	43,358	46,175
Royalties payable	16,597	16,215
Restructuring liability	1,167	2,315
Income tax payable		2,198
Current operating lease liabilities	1,932
Short-term borrowings and current portion of long-term debt	66,845	66,845
Other current liabilities	3,652	3,652
Total current liabilities	179,058	176,622
Long-term debt, net	654,432	662,203
Long-term operating lease liabilities	5,626
Other liabilities	14,711	14,547
TOTAL LIABILITIES	853,827	853,372
Commitments and contingencies (Note 12 )
STOCKHOLDERS' EQUITY
Common stock ($0.001 par value, 100,000,000 shares authorized; 39,629,271 and 38,969,518 shares issued; 38,526,558 and 38,010,714 shares outstanding at September 30, 2019 and June 30, 2019, respectively)	40	39
Additional paid-in capital	314,645	317,023
Retained earnings	19,918	32,075
Accumulated other comprehensive loss	(661)	(615)
Treasury stock (1,102,713 and 958,804 shares at September 30, 2019 and June 30, 2019, respectively)	(15,838)	(14,481)
Total stockholders' equity	318,104	334,041
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,171,931	$ 1,187,413

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	39,629,271	38,969,518
Common stock, outstanding shares	38,526,558	38,010,714
Treasury stock, shares	1,102,713	958,804

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales		$ 127,342	$ 155,054
Cost of sales		77,656	87,690
Amortization of intangibles		7,028	8,223
Gross profit		42,658	59,141
Operating expenses:
Research and development expenses		8,940	9,810
Selling, general and administrative expenses		21,308	20,588
Restructuring expenses		1,388	1,022
Asset impairment charges		1,618	369,499
Total operating expenses		33,254	400,919
Operating income (loss)		9,404	(341,778)
Other income (loss):
Loss on extinguishment of debt		(2,145)
Investment income		729	379
Interest expense		(19,292)	(21,433)
Other		934	(296)
Total other loss		(19,774)	(21,350)
Loss before income tax		(10,370)	(363,128)
Income tax expense (benefit)		1,787	(75,600)
Net loss		$ (12,157)	$ (287,528)
Loss per common share:
Basic (in dollars per share)		$ (0.32)	$ (7.65)
Diluted (in dollars per share)	[1]	$ (0.32)	$ (7.65)
Weighted average common shares outstanding:
Basic (in shares)		38,309,267	37,586,327
Diluted (in shares)	[1]	38,309,267	37,586,327
[1]	See Note 14 “Loss Per Common Share” for details on calculation.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net loss	$ (12,157)	$ (287,528)
Other comprehensive loss, before tax:
Foreign currency translation gain (loss)	(46)	6
Total other comprehensive (loss) income, before tax	(46)	6
Total other comprehensive (loss) income, net of tax	(46)	6
Comprehensive loss	$ (12,203)	$ (287,522)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Balance at Jun. 30, 2018	$ 38	$ 306,817	$ 306,464	$ (515)	$ (13,889)	$ 598,915
Balance (in shares) at Jun. 30, 2018	38,257
Increase (Decrease) in Shareholders' Equity
Shares issued in connection with share-based compensation plans	$ 1	283				284
Shares issued in connection with share-based compensation plans (in shares)	408
Share-based compensation		3,035				3,035
Purchase of treasury stock					(406)	(406)
Other comprehensive income, net of tax				6		6
ASC 606 adjustment, net of tax			(2,283)			(2,283)
Net loss			(287,528)			(287,528)
Balance at Sep. 30, 2018	$ 39	310,135	16,653	(509)	(14,295)	312,023
Balance (in shares) at Sep. 30, 2018	38,665
Balance at Jun. 30, 2019	$ 39	317,023	32,075	(615)	(14,481)	334,041
Balance (in shares) at Jun. 30, 2019	38,970
Increase (Decrease) in Shareholders' Equity
Shares issued in connection with share-based compensation plans	$ 1	235				236
Shares issued in connection with share-based compensation plans (in shares)	660
Share-based compensation		4,459				4,459
Purchase of treasury stock					(1,357)	(1,357)
Other comprehensive income, net of tax				(46)		(46)
Purchase of capped call		(7,072)				(7,072)
Net loss			(12,157)			(12,157)
Balance at Sep. 30, 2019	$ 40	$ 314,645	$ 19,918	$ (661)	$ (15,838)	$ 318,104
Balance (in shares) at Sep. 30, 2019	39,630

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
OPERATING ACTIVITIES:
Net loss	$ (12,157)	$ (287,528)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	12,789	14,802
Deferred income tax benefit	(1,091)	(77,698)
Share-based compensation	4,459	3,035
Asset impairment charges	1,618	369,499
Loss (gain) on sale/disposal of assets	(1,298)	37
Loss on extinguishment of debt	2,145
Amortization of debt discount and other debt issuance costs	4,008	4,539
Other noncash expenses	379
Changes in assets and liabilities which provided (used) cash:
Accounts receivable, net	(8,357)	44,127
Inventories	(5,191)	(9,842)
Prepaid income taxes/income taxes payable	(2,193)	14,386
Other assets	6,789	(2,149)
Rebates payable	(2,817)	(12,911)
Royalties payable	382	(77)
Restructuring liability	(1,148)	205
Operating lease liability	(364)
Accounts payable	13,434	(7,320)
Accrued expenses	471	(1,253)
Accrued payroll and payroll-related expenses	(7,577)	2,872
Net cash provided by operating activities	4,281	54,724
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(4,033)	(5,802)
Proceeds from sale of property, plant and equipment	6,305	14,046
Proceeds from sale of outstanding loan to Variable Interest Entity ("VIE")		5,600
Advance to VIE	(250)
Purchases of intangible asset	(23,500)
Net cash provided by (used in) provided by investing activities	(21,478)	13,844
FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	86,250
Purchase of capped call	(7,072)
Repayments of long-term debt	(96,566)	(16,711)
Proceeds from issuance of stock	236	284
Payment of deferred financing fees	(3,489)
Purchase of treasury stock	(1,357)	(406)
Net cash used in financing activities	(21,998)	(16,833)
Effect on cash and cash equivalents of changes in foreign exchange rates	(46)	6
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(39,241)	51,741
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	140,249	98,586
CASH AND CASH EQUIVALENTS, END OF PERIOD	101,008	150,327
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	15,316	16,716
Income taxes paid (refunded)	5,070	(12,282)
Accrued purchases of property, plant and equipment	$ 1,770	$ 3,620

Interim Financial Information

Interim Financial Information	3 Months Ended
	Sep. 30, 2019
Interim Financial Information
Interim Financial Information	Note 1. Interim Financial Information The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for the presentation of interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited financial statements do not include all the information and footnotes necessary for a comprehensive presentation of the financial position, results of operations and cash flows for the periods presented. In the opinion of management, the unaudited financial statements include all the normal recurring adjustments that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. These unaudited financial statements should be read in combination with the other Notes in this section; “Management’s Discussion and Analysis of Financial Condition and Results of Operations” appearing in Item 2; and the Consolidated Financial Statements, including the Notes to the Consolidated Financial Statements, included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019. The Consolidated Balance Sheet as of June 30, 2019 was derived from audited financial statements.

The Business And Nature of Oper

The Business And Nature of Operations	3 Months Ended
	Sep. 30, 2019
The Business And Nature of Operations
The Business And Nature of Operations	Note 2. The Business And Nature of Operations Lannett Company, Inc. (a Delaware corporation) and its subsidiaries (collectively, the “Company” or “Lannett”) primarily develop, manufacture, package, market and distribute solid oral and extended release (tablets and capsules), topical, nasal and oral solution finished dosage forms of drugs that address a wide range of therapeutic areas. Certain of these products are manufactured by others and distributed by the Company. The Company operates pharmaceutical manufacturing plants in Carmel, New York and Seymour, Indiana. The Company’s customers include generic pharmaceutical distributors, drug wholesalers, chain drug stores, private label distributors, mail-order pharmacies, other pharmaceutical manufacturers, managed care organizations, hospital buying groups, governmental entities and health maintenance organizations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). Principles of consolidation The Consolidated Financial Statements include the accounts of Lannett Company, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Business Combinations Acquired businesses are accounted for using the acquisition method of accounting, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective estimated fair values. The fair values and useful lives assigned to each class of assets acquired and liabilities assumed are based on, among other factors, the expected future period of benefit of the asset, the various characteristics of the asset and projected future cash flows. Significant judgment is employed in determining the assumptions utilized as of the acquisition date and for each subsequent measurement period. Accordingly, changes in assumptions described above could have a material impact on our consolidated results of operations. Reclassifications Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of revenue recognition and sales deductions for estimated chargebacks, rebates, returns and other adjustments including a provision for the Company’s liability under the Medicare Part D program. Additionally, significant estimates and assumptions are required when determining the fair value of long-lived assets, including intangible assets, income taxes, contingencies and share-based compensation. Because of the inherent subjectivity and complexity involved in these estimates and assumptions, actual results could differ from those estimates. Foreign currency translation The Consolidated Financial Statements are presented in U.S. Dollars, the reporting currency of the Company. The financial statements of the Company’s foreign subsidiary are maintained in local currency and translated into U.S. dollars at the end of each reporting period. Assets and liabilities are translated at period-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The adjustments resulting from the use of differing exchange rates are recorded as part of stockholders’ equity in accumulated other comprehensive income (loss). Gains and losses resulting from transactions denominated in foreign currencies are recognized in the Consolidated Statements of Operations under Other income (loss). Amounts recorded due to foreign currency fluctuations are immaterial to the Consolidated Financial Statements. Cash and cash equivalents The Company considers all highly liquid investments with original maturities less than or equal to three months at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value, and consist of bank deposits and certificates of deposit that are readily convertible into cash. The Company maintains its cash deposits and cash equivalents at well-known, stable financial institutions. Such amounts frequently exceed insured limits. Allowance for doubtful accounts The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time balances are past due, the Company’s previous loss history, the customer’s current ability to pay its obligations to the Company and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable when they are determined to be uncollectible. Inventories Inventories are stated at the lower of cost or net realizable value by the first-in, first-out method. Inventories are regularly reviewed and write-downs for excess and obsolete inventory are recorded based primarily on current inventory levels, expiration date and estimated sales forecasts. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the assets’ estimated useful lives. Repairs and maintenance costs that do not extend the useful life of the asset are expensed as incurred. Intangible Assets Definite-lived intangible assets are stated at cost less accumulated amortization. Amortization of definite-lived intangible assets is computed on a straight-line basis over the assets’ estimated useful lives which commences upon shipment of the product, generally for periods ranging from 10 to 15 years. The Company continually evaluates the reasonableness of the useful lives of these assets. Indefinite-lived intangible assets are not amortized, but instead are tested at least annually for impairment. Costs to renew or extend the term of a recognized intangible asset are expensed as incurred. Valuation of Long-Lived Assets, including Intangible Assets The Company’s long-lived assets primarily consist of property, plant and equipment and definite and indefinite-lived intangible assets. Property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances (“triggering events”) indicate that the carrying amount of the asset may not be recoverable. If a triggering event is determined to have occurred, the asset’s carrying value is compared to the future undiscounted cash flows expected to be generated by the asset. If the carrying value exceeds the undiscounted cash flows of the asset, then impairment exists. Indefinite-lived intangible assets are tested for impairment at least annually during the fourth quarter of each fiscal year or more frequently if events or triggering events indicate that the asset might be impaired. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, which in most cases is calculated using a discounted cash flow model. Discounted cash flow models are highly reliant on various assumptions which are considered Level 3 inputs, including estimates of future cash flows (including long-term growth rates), discount rates and the probability of achieving the estimated cash flows. In-Process Research and Development Amounts allocated to in-process research and development in connection with a business combination are recorded at fair value and are considered indefinite-lived intangible assets subject to impairment testing in accordance with the Company’s impairment testing policy for indefinite-lived intangible assets. As products in development are approved for sale, amounts will be allocated to product rights and will be amortized over their estimated useful lives. Definite-lived intangible assets are amortized over the expected lives of the related assets. The judgments made in determining the estimated fair value of in-process research and development, as well as asset lives, can materially impact our results of operations. The Company’s fair value assessments are highly reliant on various assumptions which are considered Level 3 inputs, including estimates of future cash flows (including long-term growth rates), discount rates and the probability of achieving the estimated cash flows. Segment Information The Company operates in one reportable segment, generic pharmaceuticals. As such, the Company aggregates its financial information for all products. The table below identifies the Company’s net sales by medical indication for the three months ended September 30, 2019 and 2018. The medical indication categories for the three months ended September 30, 2018 was reclassified to better align with industry standards and the Company’s peers. Three Months Ended (In thousands) September 30, Medical Indication 2019 2018 Analgesic $ 1,884 $ 1,829 Anti-Psychosis 28,034 10,889 Cardiovascular 21,606 21,770 Central Nervous System 19,257 14,286 Endocrinology — 53,878 Gastrointestinal 16,962 17,594 Infectious Disease 11,895 4,480 Migraine 9,143 9,737 Respiratory/Allergy/Cough/Cold 2,707 3,584 Urinary 435 1,541 Other 9,861 10,805 Contract manufacturing revenue 5,558 4,661 Total $ 127,342 $ 155,054 Customer, Supplier and Product Concentration The following table presents the percentage of total net sales, for the three months ended September 30, 2019 and 2018, for one of the Company’s products, defined as products containing the same active ingredient or combination of ingredients, which accounted for at least 10% of net sales in any of those periods: 2019 2018 Product 1 20 % 6 % Product 2 — % 35 % The following table presents the percentage of total net sales, for the three months ended September 30, 2019 and 2018, for certain of the Company’s customers which accounted for at least 10% of net sales in any of those periods: 2019 2018 Customer A 27 % 18 % Customer B 25 % 29 % Customer C 13 % 7 % The Company’s primary finished goods inventory supplier through March 23, 2019 was Jerome Stevens Pharmaceuticals, Inc. (“JSP”), in Bohemia, New York. Purchases of finished goods inventory from JSP accounted for approximately 32% of the Company’s inventory purchases during the three months ended September 30, 2018. There were no purchases of finished goods inventory from JSP in the first quarter of Fiscal 2020. Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers , which superseded ASC Topic 605, Revenue Recognition . Under ASC 606, the Company recognizes revenue when (or as) we satisfy our performance obligations by transferring a promised good or service to a customer at an amount that reflects the consideration the Company is expected to be entitled. Our revenue consists almost entirely of sales of our pharmaceutical products to customers, whereby we ship product to a customer pursuant to a purchase order. Revenue contracts such as these do not generally give rise to contract assets or contract liabilities because: (i) the underlying contracts generally have only a single performance obligation and (ii) we do not generally receive consideration until the performance obligation is fully satisfied. The new revenue standard impacts the timing of the Company’s revenue recognition by requiring recognition of certain contract manufacturing arrangements to change from “upon shipment or delivery” to “over time”. However, the recognition of these arrangements over time does not currently have a material impact on the Company’s consolidated results of operations or financial position. The Company adopted ASC 606 using the modified retrospective method. When revenue is recognized, a simultaneous adjustment to gross sales is made for estimated chargebacks, rebates, returns, promotional adjustments and other potential adjustments. These provisions are primarily estimated based on historical experience, future expectations, contractual arrangements with wholesalers and indirect customers and other factors known to management at the time of accrual. Accruals for provisions are presented in the Consolidated Financial Statements as a reduction to gross sales with the corresponding reserve presented as a reduction of accounts receivable or included as rebates payable, depending on the nature of the reserve. Provisions for chargebacks, rebates, returns and other adjustments require varying degrees of subjectivity. While rebates generally are based on contractual terms and require minimal estimation, chargebacks and returns require management to make more subjective assumptions. Each major category is discussed in detail below: Chargebacks The provision for chargebacks is the most significant and complex estimate used in the recognition of revenue. The Company sells its products directly to wholesale distributors, generic distributors, retail pharmacy chains and mail-order pharmacies. The Company also sells its products indirectly to independent pharmacies, managed care organizations, hospitals, nursing homes and group purchasing organizations, collectively referred to as “indirect customers.” The Company enters into agreements with its indirect customers to establish pricing for certain products. The indirect customers then independently select a wholesaler from which to purchase the products. If the price paid by the indirect customers is lower than the price paid by the wholesaler, the Company will provide a credit, called a chargeback, to the wholesaler for the difference between the contractual price with the indirect customers and the wholesaler purchase price. The provision for chargebacks is based on expected sell-through levels by the Company’s wholesale customers to the indirect customers and estimated wholesaler inventory levels. As sales to the large wholesale customers, such as Cardinal Health, AmerisourceBergen and McKesson increase (decrease), the reserve for chargebacks will also generally increase (decrease). However, the size of the increase (decrease) depends on product mix and the amount of sales made to indirect customers with which the Company has specific chargeback agreements. The Company continually monitors the reserve for chargebacks and makes adjustments when management believes that expected chargebacks may differ from the actual chargeback reserve. Rebates Rebates are offered to the Company’s key chain drug store, distributor and wholesaler customers to promote customer loyalty and increase product sales. These rebate programs provide customers with credits upon attainment of pre-established volumes or attainment of net sales milestones for a specified period. Other promotional programs are incentive programs offered to the customers. Additionally, as a result of the Patient Protection and Affordable Care Act (“PPACA”) enacted in the U.S. in March 2010, the Company participates in a new cost-sharing program for certain Medicare Part D beneficiaries designed primarily for the sale of brand drugs and certain generic drugs if their FDA approval was granted under a New Drug Application (“NDA”) or 505(b) NDA versus an abbreviated new drug application ("ANDA’). Drugs purchased within the Medicare Part D coverage gap (commonly referred to as the “donut hole”) result in additional rebates. The Company estimates the reserve for rebates and other promotional credit programs based on the specific terms in each agreement when revenue is recognized. The reserve for rebates increases (decreases) as sales to certain wholesale and retail customers increase (decrease). However, since these rebate programs are not identical for all customers, the size of the reserve will depend on the mix of sales to customers that are eligible to receive rebates. Returns Consistent with industry practice, the Company has a product returns policy that allows customers to return product within a specified time period prior to and subsequent to the product’s expiration date in exchange for a credit to be applied to future purchases. The Company’s policy requires that the customer obtain pre-approval from the Company for any qualifying return. The Company estimates its provision for returns based on historical experience, changes to business practices, credit terms and any extenuating circumstances known to management. While historical experience has allowed for reasonable estimations in the past, future returns may or may not follow historical trends. The Company continually monitors the reserve for returns and makes adjustments when management believes that actual product returns may differ from the established reserve. Generally, the reserve for returns increases as net sales increase. Other Adjustments Other adjustments consist primarily of “price adjustments, also known as “shelf-stock adjustments” and “price protections,” which are both credits issued to reflect increases or decreases in the invoice or contract prices of the Company’s products. In the case of a price decrease, a credit is given for product remaining in customer’s inventories at the time of the price reduction. Contractual price protection results in a similar credit when the invoice or contract prices of the Company’s products increase, effectively allowing customers to purchase products at previous prices for a specified period of time. Amounts recorded for estimated shelf-stock adjustments and price protections are based upon specified terms with direct customers, estimated changes in market prices and estimates of inventory held by customers. The Company regularly monitors these and other factors and evaluates the reserve as additional information becomes available. Other adjustments also include prompt payment discounts and “failure-to-supply” adjustments. If the Company is unable to fulfill certain customer orders, the customer can purchase products from our competitors at their prices and charge the Company for any difference in our contractually agreed upon prices. Leases On July 1, 2019, the Company adopted ASC Topic 842, Leases , which superseded ASC Topic 840, Leases . Refer to the “Recent Accounting Pronouncements” section of this footnote for further discussion on the impact of the adoption. Under ASC 842, when the Company enters into a new arrangement, it must determine, at the inception date, whether the arrangement is or contains a lease. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Once a lease has been identified, the Company must determine the lease term, the present value of lease payments and the classification of the lease as either operating or financing. The lease term is determined to be the non-cancelable period including any lessee renewal options which are considered to be reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants The present value of lease payments includes fixed and certain variable payments, less lease incentives, together with amounts probable of being owed by the Company under residual value guarantees and, if reasonably certain of being paid, the cost of certain renewal options and early termination penalties set forth in the lease arrangement. To calculate the present value of lease payments, we use our incremental borrowing rate based on the information available at commencement date, as the rate implicit in the lease is generally not readily available. In making the determination of whether a lease is an operating lease or a finance lease, the Company considers the lease term in relation to the economic life of the leased asset, the present value of lease payments in relation to the fair value of the leased asset and certain other factors. Upon the commencement of the lease, the Company will record a lease liability and right-of-use (“ROU”) asset based on the present value of the future minimum lease payments over the lease term at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. For operating leases, a single lease cost is generally recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term unless an impairment has been recorded with respect to a leased asset. For finance leases, amortization expense and interest expense are recognized separately in the Consolidated Statements of Operations, with amortization expense generally recorded on a straight-line basis and interest expense recorded using the effective interest method. Variable lease costs not initially included in the lease liability and ROU asset impairment charges are expensed as incurred. Cost of Sales, including Amortization of Intangibles Cost of sales includes all costs related to bringing products to their final selling destination, which includes direct and indirect costs, such as direct material, labor and overhead expenses. Additionally, cost of sales includes product royalties, depreciation, amortization and costs to renew or extend recognized intangible assets, freight charges and other shipping and handling expenses. Research and Development Research and development costs are expensed as incurred, including all production costs until a drug candidate is approved by the Food and Drug Administration ("FDA"). Research and development expenses include costs associated with internal projects as well as costs associated with third-party research and development contracts. Contingencies Loss contingencies, including litigation-related contingencies, are included in the Consolidated Statements of Operations when the Company concludes that a loss is both probable and reasonably estimable. Legal fees for litigation-related matters are expensed as incurred and included in the Consolidated Statements of Operations under the Selling, general and administrative expenses line item. Restructuring Costs The Company records charges associated with approved restructuring plans to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations and contract cancellation costs. The Company records restructuring charges based on estimated employee terminations, site closure and consolidation plans. The Company accrues severance and other employee separation costs under these actions when it is probable that a liability exists and the amount is reasonably estimable. Share-based Compensation Share-based compensation costs are recognized over the vesting period, using a straight-line method, based on the fair value of the instrument on the date of grant less an estimate for expected forfeitures. The Company uses the Black-Scholes valuation model to determine the fair value of stock options, the stock price on the grant date to value restricted stock and the Monte-Carlo simulation model to determine the fair value of performance-based shares. The Black-Scholes valuation and Monte-Carlo simulation models include various assumptions, including the expected volatility, the expected life of the award, dividend yield and the risk-free interest rate as well as performance assumptions of peer companies. These assumptions involve inherent uncertainties based on market conditions which are generally outside the Company’s control. Changes in these assumptions could have a material impact on share-based compensation costs recognized in the consolidated financial statements. Self-Insurance The Company self-insures for certain employee medical and prescription benefits. The Company also maintains stop loss coverage with third party insurers to limit its total liability exposure. The liability for self-insured risks is primarily calculated using independent third-party actuarial valuations which take into account actual claims, claims growth and claims incurred but not yet reported. Actual experience, including claim frequency and severity as well as health-care inflation, could result in different liabilities than the amounts currently recorded. The liability for self-insured risks under this plan as of September 30, 2019 totaled $1.5 million and was not material to the financial position of the Company as of June 30, 2019. Income Taxes The Company uses the liability method to account for income taxes as prescribed by ASC 740, Income Taxes . Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates in the period during which they are signed into law. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Under ASC 740, Income Taxes , a valuation allowance is required when it is more likely than not that all or some portion of the deferred tax assets will not be realized through generating sufficient future taxable income. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company’s effective tax rate on future earnings. The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The authoritative accounting standards also provide guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. On December 22, 2017, President Trump signed the Tax Cut and Jobs Act legislation (“2017 Tax Reform”) into law, which included a broad range of tax reform provisions affecting businesses, including corporate tax rates, business deductions and international tax provisions. Many of these provisions significantly differ from the then-current U.S. tax law, resulting in pervasive financial reporting implications. As a result of the new law, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of 2017 Tax Reform. SAB 118 requires registrants to report the tax effects of 2017 Tax Reform, inclusive of provisional amounts for which the accounting is incomplete but a reasonable estimate can be determined. In the second quarter of Fiscal 2019, the Company finalized the provisional amounts without any further adjustments. Earnings (Loss) Per Common Share A dual presentation of basic and diluted earnings (loss) per common share is required on the face of the Company's Consolidated Statement of Operations as well as a reconciliation of the computation of basic earnings (loss) per common share to diluted earnings (loss) per common share. Basic earnings (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Beginning in the first quarter of Fiscal 2020, the Company's diluted earnings (loss) per common share is computed using the "if-converted" method by dividing the adjusted "if-converted" net income by the adjusted weighted average number of shares of common stock outstanding during the period. The adjusted "if-converted" net income is adjusted for interest expense and amortization of debt issuance costs, both net of tax, associated with the Company’s 4.50% Convertible Senior Notes due 2026. The weighted average number of diluted shares is adjusted for the potential dilutive effect of the exercise of stock options, treats unvested restricted stock and performance-based shares as if it were vested, and assumes the conversion of the 4.50% Convertible Senior Notes. Anti-dilutive securities are excluded from the calculation. Dilutive shares are also excluded in the calculation in periods of net loss because the effect of including such securities would be anti-dilutive. Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company’s stockholders. Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss), but excluded from income (loss) for all amounts are recorded directly as an adjustment to stockholders’ equity. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires an entity to recognize ROU assets and liabilities on its balance sheet for all leases with terms longer than 12 months. Lessees and lessors are required to disclose quantitative and qualitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and requires a modified retrospective application, with early adoption permitted. The Company adopted ASU 2016-02 as of July 1, 2019 on a modified retrospective basis applying the guidance to leases existing as of this effective date. The Company has determined that there was no cumulative-effect adjustment to beginning retained earnings on the consolidated balance sheet. The Company will continue to report periods prior to July 1, 2019 in our financial statements under prior guidance as outlined in Topic 840. Refer to Note 12 "Commitments" for additional information. The Company’s adoption of ASU No. 2016-02 resulted in an increase in the Company’s assets and liabilities of $7.9 million at July 1, 2019. The Company’s adoption of ASU No. 2016-02 did not have any impact to the Company’s consolidated statements of operations, or its consolidated statements of cash flows. Further, there was no impact on the Company’s covenant compliance under its current debt agreements as a result of the adoption of ASU No. 2016-02. The Company elected the package of practical expedients included in this guidance, which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company does not recognize short-term leases of 12 months or less on its consolidated balance sheets and will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term.

Restructuring Charges

Restructuring Charges	3 Months Ended
	Sep. 30, 2019
Restructuring Charges
Restructuring Charges	Note 4. Restructuring Charges Cody Restructuring Program On June 29, 2018, the Company announced a restructuring plan with respect to Cody Labs (the “Cody Restructuring Plan”). The plan focused on a more select set of opportunities which resulted in streamlined operations, improved efficiencies and a reduced cost structure. The Company incurred approximately $2.5 million of severance and employee-related costs under this plan. The restructuring activities under the Cody Restructuring Program are complete as of September 30,2019. The expenses associated with the Cody Restructuring Plan included in restructuring expenses during the three months ended September 30, 2019 and September 30, 2018 were as follows: Three Months Ended Three Months Ended (In thousands) September 30, 2019 September 30, 2018 Employee separation costs $ — $ 144 Facility closure costs — — Total $ — $ 144 A reconciliation of the changes in restructuring liabilities associated with the Cody Restructuring Plan from June 30, 2019 through September 30, 2019 is set forth in the following table: Employee Facility Closure (In thousands) Separation Costs Costs Total Balance at June 30, 2019 $ 108 $ — $ 108 Restructuring Charges — — — Payments (108) — (108) Balance at September 30, 2019 $ — — $ — Cody API Restructuring Plan In September 2018, the Company approved a plan to sell the active pharmaceutical ingredient manufacturing distribution business of Cody Labs (the “Cody API business”). The Company was unable to sell the Cody API business as an ongoing operation and intended to sell the equipment and real estate utilized by the Cody API business upon receiving approval of the Company’s cocaine hydrochloride solution Section 505(b)(2) NDA application and to have Cody Labs cease all operations. In June 2019, the Company approved the Cody API Restructuring Plan. In connection with the Cody API Restructuring Plan, there has been a reduction of almost 70 positions at Cody Labs. The restructuring activities under the Cody API Restructuring Plan are substantially complete as of September 30, 2019. In the first quarter of Fiscal 2020, the Company completed the sale of a portion of the equipment associated with the Cody API business for $2.0 million. The costs to implement the Cody API Restructuring Plan total approximately $6.0 million, including approximately $3.5 million of severance and employee-related costs and approximately $2.0 million of contract termination costs, as well as approximately $0.5 million of costs to be incurred in connection with moving equipment and other property to other Company-owned facilities that were originally anticipated to be incurred in connection with the Cody Restructuring Plan announced in June 2018. The expenses associated with the Cody API Restructuring Plan included in restructuring expenses during the three months ended September 30, 2019 were as follows: Three Months Ended (In thousands) September 30, 2019 Employee separation costs $ 892 Facility closure costs 496 Total $ 1,388 A reconciliation of the changes in restructuring liabilities associated with the Cody API Restructuring Plan from June 30, 2019 through September 30, 2019 is set forth in the following table: Contract Employee Termination Facility Closure (In thousands) Separation Costs Costs Costs Total Balance at June 30, 2019 $ 2,207 $ — $ — $ 2,207 Restructuring Charges 892 — 496 1,388 Payments (1,932) — (496) (2,428) Balance at September 30, 2019 $ 1,167 $ — — $ 1,167 2016 Restructuring Program On February 1, 2016, in connection with the acquisition of Kremers Urban Pharmaceuticals Inc.("KUPI "), the Company announced a plan related to the future integration of KUPI and the Company’s operations (the “2016 Restructuring Program”). The plan focused on the closure of KUPI’s corporate functions and the consolidation of manufacturing, sales, research and development and distribution functions. The restructuring activities under the 2016 Restructuring Program were completed as of March 31, 2019. The Company incurred an aggregate of approximately $21.0 million in restructuring charges for actions that have been announced or communicated since the 2016 Restructuring Program began. Of this amount, approximately $11.0 million related to employee separation costs, approximately $1.0 million relates to contract termination costs and approximately $9.0 million related to facility closure costs and other actions. The expenses associated with the restructuring program included in restructuring expenses during the three months ended September 30, 2018 were as follows: Three Months Ended (In thousands) September 30, 2018 Employee separation costs $ 414 Facility closure costs 464 Total $ 878

Accounts Receivable

Accounts Receivable	3 Months Ended
	Sep. 30, 2019
Accounts Receivable
Accounts Receivable	Note 5. Accounts Receivable Accounts receivable consisted of the following components at September 30, 2019 and June 30, 2019: September 30, June 30, (In thousands) 2019 2019 Gross accounts receivable $ 362,309 $ 361,323 Less: Chargebacks reserve (83,483) (89,567) Less: Rebates reserve (31,473) (32,099) Less: Returns reserve (53,992) (55,554) Less: Other deductions (19,109) (18,128) Less: Allowance for doubtful accounts (1,143) (1,223) Accounts receivable, net $ 173,109 $ 164,752 For the three months ended September 30, 2019, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $207.9 million, $58.5 million, $3.7 million and $12.7 million, respectively. For the three months ended September 30, 2018, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $277.9 million, $64.7 million, $7.3 million and $13.9 million, respectively. The following table identifies the activity and ending balances of each major category of revenue-related reserve for the three months ended September 30, 2019 and 2018: Reserve Category (In thousands) Chargebacks Rebates Returns Other Total Balance at June 30, 2019 $ 89,567 $ 78,274 $ 55,554 $ 18,128 $ 241,523 Current period provision 207,933 58,509 3,694 12,705 282,841 Credits issued during the period (214,017) (61,952) (5,256) (11,724) (292,949) Balance at September 30, 2019 $ 83,483 $ 74,831 $ 53,992 $ 19,109 $ 231,415 Reserve Category (In thousands) Chargebacks Rebates Returns Other Total Balance at June 30, 2018 $ 153,034 $ 82,502 $ 43,059 $ 20,021 $ 298,616 Adjustment related to adoption of ASC 606 — — — 3,536 3,536 Current period provision 277,949 64,749 7,347 13,889 363,934 Credits issued during the period (305,407) (76,626) (6,045) (13,146) (401,224) Balance at September 30, 2018 $ 125,576 $ 70,625 $ 44,361 $ 24,300 $ 264,862 For the three months ending September 30, 2019 and 2018, as a percentage of gross sales the provision for chargebacks was 51.4% and 54.0%, the provision for rebates was 14.5% and 12.6%, the provision for returns was 0.9% and 1.4% and the provision for other adjustments was 3.1% and 2.7%, respectively. On July 1, 2018, the Company adopted ASC 606 which resulted in a $3.2 million pre-tax adjustment to opening retained earnings and accounts receivable, of which $3.5 million related to “failure-to-supply” reserves offset by $0.3 million related to the timing of recognition of certain contract manufacturing arrangements. The decrease in total reserves from June 30, 2019 to September 30, 2019 was mainly attributable to a $9.4 million rebate payment to the Department of Veteran's Affairs related to pricing overcharges,of which $8.1 million was indemnified by UCB , the former parent company of KUPI. See Note 11 "Legal, Regulatory Matters and Contingencies" for more information. Historically, we have not recorded any material amounts in the current period related to reversals or additions of prior period reserves. If the Company were to record a material reversal or addition of any prior period reserve amount, it would be separately disclosed.

Inventories

Inventories	3 Months Ended
	Sep. 30, 2019
Inventories
Inventories	Note 6. Inventories Inventories at September 30, 2019 and June 30, 2019 consisted of the following: September 30, June 30, (In thousands) 2019 2019 Raw Materials $ 59,115 $ 56,740 Work-in-process 14,359 18,988 Finished Goods 75,688 68,243 Total $ 149,162 $ 143,971 During the three months ended September 30, 2019 and 2018, the Company recorded write-downs to net realizable value for excess and obsolete inventory of $3.5 million and $3.4 million, respectively.

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment
Property, Plant and Equipment	Note 7. Property, Plant and Equipment Property, plant and equipment at September 30, 2019 and June 30, 2019 consisted of the following: September 30, June 30, (In thousands) Useful Lives 2019 2019 Land — $ 1,783 $ 1,783 Building and improvements 10 - 39 years 89,901 87,609 Machinery and equipment 5 - 10 years 158,555 156,166 Furniture and fixtures 5 - 7 years 3,110 3,105 Less accumulated depreciation (89,182) (83,424) 164,167 165,239 Construction in progress 20,722 21,431 Property, plant and equipment, net $ 184,889 $ 186,670 Depreciation expense for the three months ended September 30, 2019 and 2018 was $5.8 million and $6.6 million, respectively. In the first quarter of Fiscal 2019, the Company approved a plan to sell the Cody API business and performed a fair value analysis which resulted in a $29.9 million impairment of the Cody API property, plant and equipment assets . The Company was unable to sell the Cody API business as an ongoing operation and intended to sell the equipment and real estate utilized by the Cody API business and to have Cody Labs cease all operations. As such, Cody Labs' property, plant and equipment totaling $6.7 million, were recorded in the assets held for sale caption in the Consolidated Balance Sheet as of June 30, 2019. As of September 30, 2019, the Company has a remaining balance of $4.6 million recorded in the assets held for sale caption in the Consolidated Balance Sheet. See Note 19 “Assets Held for Sale” for more information. In the second quarter of Fiscal 2019, the Company ceased manufacturing functions at the Townsend Road facility and decided to sell the property. The sale was finalized in the first quarter of Fiscal 2020 for total proceeds of $4.3 million. Property, plant and equipment, net included amounts held in foreign countries in the amount of $1.0 million at September 30, 2019 and June 30, 2019.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Fair Value Measurements	Note 8. Fair Value Measurements The Company’s financial instruments recorded in the Consolidated Balance Sheets include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt obligations. Included in cash and cash equivalents are certificates of deposit with maturities less than or equal to three months at the date of purchase and money market funds. The carrying value of certain financial instruments, primarily cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their estimated fair values based upon the short-term nature of their maturity dates. The Company follows the authoritative guidance of ASC Topic 820 “Fair Value Measurements and Disclosures.” Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s financial assets and liabilities measured at fair value are entirely within Level 1 of the hierarchy as defined below: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 — Directly or indirectly observable inputs, other than quoted prices, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; or model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 — Unobservable inputs that are supported by little or no market activity and that are material to the fair value of the asset or liability. Financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation are examples of Level 3 assets and liabilities. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial Instruments Disclosed, But Not Reported, at Fair Value We estimate the fair value of our debt utilizing market quotations for debt that have quoted prices in active markets. Since our debt does not trade on a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities (Level 2). The estimated fair value of our term loan debt was approximately $656 million and $724 million as of September 30, 2019 and June 30, 2019, respectively. The estimated fair value of our 4.5% Convertible Senior Notes was approximately $87 million as of September 30, 2019. The difference between the principal amount of the 4.5% Convertible Senior Notes and its' estimated fair value represents the equity conversion value premium.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 9. Goodwill and Intangible Assets On August 17, 2018, JSP notified the Company that it would not extend or renew the JSP Distribution Agreement when the current term expired on March 23, 2019. The Company determined that JSP’s decision represented a triggering event under U.S. GAAP to perform an analysis to determine the potential for impairment of goodwill. On October 4, 2018, the Company completed the analysis based on market data and concluded a full impairment of goodwill , totaling $339.6 million, was required. Intangible assets, net as of September 30, 2019 and June 30, 2019, consisted of the following: Weighted Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Avg. Life September 30, June 30, September 30, June 30, September 30, June 30, (In thousands) (Yrs.) 2019 2019 2019 2019 2019 2019 Definite-lived: Cody Labs import license 15 $ 581 $ 581 $ (434) $ (424) $ 147 $ 157 KUPI product rights 15 416,154 416,154 (104,519) (97,583) 311,635 318,571 KUPI trade name 2 2,920 2,920 (2,920) (2,920) — — KUPI other intangible assets 15 19,000 19,000 (4,878) (4,562) 14,122 14,438 Silarx product rights 15 10,000 10,000 (2,889) (2,722) 7,111 7,278 Other product rights 13 30,192 26,579 (3,954) (4,243) 26,238 22,336 Total definite-lived $ 478,847 $ 475,234 $ (119,594) $ (112,454) $ 359,253 $ 362,780 Indefinite-lived: KUPI in-process research and development — $ 18,000 $ 18,000 $ — $ — $ 18,000 $ 18,000 Silarx in-process research and development — 18,000 18,000 — — 18,000 18,000 Other product rights — 32,000 12,449 — — 32,000 12,449 Total indefinite-lived 68,000 48,449 — — 68,000 48,449 Total intangible assets, net $ 546,847 $ 523,683 $ (119,594) $ (112,454) $ 427,253 $ 411,229 For the three months ended September 30, 2019 and 2018, the Company recorded amortization expense of $7.0 million and $8.2 million, respectively. In July 2019, the Company entered into a distribution and supply agreement with Cediprof, Inc. The Company made an upfront payment of $20.0 million to distribute Levothyroxine Sodium Tablets USP, commencing no later than August 1, 2022, which is included within the “Other product rights” category of indefinite-lived intangible assets. In August 2019, the Company entered into a distribution and supply agreement with Sinotherapeutics Inc. to distribute Posaconazole Delayed-Release Tablets 100mg.The Company paid $2.0 million upon FDA approval of the product and $1.5 million upon the first commercial sale of the product, which is included within the “Other product rights” category of definite-lived intangible assets. Future annual amortization expense consisted of the following as of September 30, 2019: (In thousands) Fiscal Year Ending June 30, Amortization Expense 2020 $ 24,228 2021 32,304 2022 32,304 2023 32,304 2024 31,967 Thereafter 206,146 $ 359,253

Long-Term Debt

Long-Term Debt	3 Months Ended
	Sep. 30, 2019
Long-Term Debt
Long-Term Debt	Note 10. Long-Term Debt Long-term debt, net consisted of the following: September 30, June 30, (In thousands) 2019 2019 Term Loan A due 2020; 7.04% as of September 30, 2019 $ 69,469 $ 153,933 Unamortized discount and other debt issuance costs (1,713) (4,722) Term Loan A, net 67,756 149,211 Term Loan B due 2022; 7.42% as of September 30, 2019 602,366 614,468 Unamortized discount and other debt issuance costs (31,611) (34,631) Term Loan B, net 570,755 579,837 4.50% Convertible Senior Notes due 2026 86,250 — Unamortized discount and other debt issuance costs (3,484) — 4.50% Convertible Senior Notes, net 82,766 — Revolving Credit Facility due 2020 — — Total debt, net 721,277 729,048 Less short-term borrowings and current portion of long-term debt (66,845) (66,845) Total long-term debt, net $ 654,432 $ 662,203 Long-term debt amounts due, for the twelve-month periods ending September 30 are as follows: Amounts Payable (In thousands) to Institutions 2020 $ 66,845 2021 81,314 2022 39,345 2023 484,331 Thereafter 86,250 Total $ 758,085 On September 27, 2019, the Company issued $86,250,000 aggregate principal amount of its 4.50% convertible senior notes due 2026 (the “Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 4.50% payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2020. The Notes will mature on October 1, 2026, unless earlier repurchased, redeemed or converted in accordance with their terms. The Notes are convertible into shares of the Company’s common stock at an initial conversion rate of 65.4022 shares per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $15.29 per share), subject to adjustments upon the occurrence of certain events (but will not be adjusted for any accrued and unpaid interest). The Company may redeem all or a part of the Notes on or after October 6, 2023 at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, up to, but excluding, the redemption date, subject to certain conditions relating to the Company's stock price having been met. Following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption. The indenture covering the Notes contains certain other customary terms and covenants, including that upon certain events of default occurring and continuing, either the trustee or holders of at least 25% in principal amount of the outstanding Notes may declare 100% of the principal of, and accrued and unpaid interest on, all the Notes to be due and payable. In connection with the offering of the Notes, the Company also entered into privately negotiated “capped call” transactions with several counterparties. The capped call transaction will initially cover, subject to customary anti-dilution adjustments, the number of shares of common stock that initially underlie the Notes. The capped call transactions are expected to generally reduce the potential dilutive effect on the Company’s common stock upon any conversion of the Notes with such reduction subject to a cap which is initially $19.46 per share. The capped call transactions are recorded in stockholders' equity and are not accounted for as derivatives. The fees associated with the capped call transactions totaled $7.1 million, which was recorded as a reduction to additional paid-in capital on the Consolidated Balance Sheet. The form of capped call confirmations was filed as Exhibit 10.57 to the Form 8-K filed with the SEC on September 27, 2019. A portion of the net proceeds received from the offering of the Notes was used to pay the cost of the capped call transactions. The remaining net proceeds, totaling $77.0 million, was used to repay a portion of the outstanding Term Loan A balance on September 27, 2019. As a result of the repayment, the Company recorded a loss on extinguishment of debt of $2.1 million in the Consolidated Statement of Operations. The outstanding Term Loan A, Term Loan B and Revolving Credit Facility amounts above are guaranteed by all of Lannett’s significant wholly-owned domestic subsidiaries and are collateralized by substantially all present and future assets of the Company.

Legal, Regulatory Matters and C

Legal, Regulatory Matters and Contingencies	3 Months Ended
	Sep. 30, 2019
Legal, Regulatory Matters and Contingencies
Legal, Regulatory Matters and Contingencies	Note 11. Legal, Regulatory Matters and Contingencies State Attorneys General Inquiry into the Generic Pharmaceutical Industry In July 2014, the Company received interrogatories and a subpoena from the State of Connecticut Office of the Attorney General concerning its investigation into the pricing of digoxin. According to the subpoena, the Connecticut Attorney General is investigating whether anyone engaged in any activities that resulted in (a) fixing, maintaining or controlling prices of digoxin or (b) allocating and dividing customers or territories relating to the sale of digoxin in violation of Connecticut antitrust law. In June 2016, the Connecticut Attorney General issued interrogatories and a subpoena to an employee of the Company in order to gain access to documents and responses previously supplied to the Department of Justice pursuant to the federal investigation described below. In December 2016, the Connecticut Attorney General, joined by numerous other State Attorneys General, filed a civil complaint alleging that six pharmaceutical companies engaged in anti-competitive behavior. The Company was not named in the action and does not compete on the products that formed the basis of the complaint. The complaint was later transferred for pretrial purposes to the United States District Court for the Eastern District of Pennsylvania as part of a multidistrict litigation captioned In re: Generic Pharmaceuticals Pricing Antitrust Litigation. On October 31, 2017, the State Attorneys General filed a motion in the District Court for leave to amend their complaint to add numerous additional defendants, including the Company, and claims relating to 13 additional drugs. The Court granted that motion on June 5, 2018. The State Attorneys General filed their amended complaint on June 18, 2018. The claim relating to Lannett involves alleged price-fixing for one drug, doxycycline monohydrate, but does not involve the pricing for digoxin. The State Attorneys General also allege that all defendants were part of an overarching, industry-wide conspiracy to allocate markets and fix prices generally.On August 15, 2019, the Court denied the defendants' joint motion to dismiss the overarching conspiracy claims, but has yet to decide an individual motion filed by the Company to dismiss the overreaching conspiracy claims as to it. On May 10, 2019, the State Attorneys General filed a new lawsuit naming the Company and one of its employees as defendants, along with 33 other corporations and individuals. The new complaint again alleges an overarching conspiracy and contains claims for price fixing and market allocation under the Sherman Act and related state laws. The complaint focuses on the conduct of another generic pharmaceutical company, and the relationships that company had with other generic companies and their employees. The specific allegations in the new complaint against Lannett relate to the Company’s sales of baclofen and levothyroxine. The new complaint also names another current employee as a defendant, however the allegations pertain to conduct that occurred prior to their employment by Lannett. The Company has not responded to the new complaint as of the date of this report. Based on internal investigations performed to date, the Company currently believes that it has acted in compliance with all applicable laws and regulations. Federal Investigation into the Generic Pharmaceutical Industry In November and December 2014, the Company and certain affiliated individuals and customers were served with grand jury subpoenas relating to a federal investigation of the generic pharmaceutical industry into possible violations of the Sherman Act. The subpoenas request corporate documents of the Company relating to corporate, financial and employee information, communications or correspondence with competitors regarding the sale of generic prescription medications and the marketing, sale, or pricing of certain products, generally, for the period of 2005 through the dates of the subpoenas. The Company received a Civil Investigative Demand (“CID”) from the Department of Justice on May 14, 2018. The CID requests information regarding allegations that the generic pharmaceutical industry engaged in market allocation, price fixing, payment of illegal remuneration and submission of false claims. The CID requests information from 2009-present. The Company is in the process of responding to the CID. Based on internal investigations performed to date, the Company believes that it has acted in compliance with all applicable laws and regulations. Government Pricing During the quarter ended December 31, 2016, the Company completed a contract compliance review, for the period January 1, 2012 through June 30, 2016, for one of KUPI’s government-entity customers. As a result of the review, the Company identified certain commercial customer prices and other terms that were not properly disclosed to the government-entity resulting in potential overcharges. For the period January 1, 2012 through November 24, 2015 (“the pre-acquisition period”), the Company is fully indemnified per the Stock Purchase Agreement. On May 22, 2019, the Department of Veterans Affairs ("VA") issued a Contracting Officer's Final Decision and Demand for Payment, assessing the sum of $9.4 million for overpayments by the Veteran's Administration for the period of January 1, 2012 through June 30, 2016. In August 2019, the Company remitted payment to the VA and received reimbursement from UCB for the indemnified portion of the payment in the amount of $8.1 million. Private Antitrust and Consumer Protection Litigation The Company and certain competitors have been named as defendants in a number of lawsuits filed in 2016 and 2017 alleging that the Company and certain generic pharmaceutical manufacturers have conspired to fix prices of generic digoxin, levothyroxine, ursodiol and baclofen. These cases are part of a larger group of more than 100 lawsuits generally alleging that over 30 generic pharmaceutical manufacturers and distributors conspired to fix prices for at least 18 different generic drugs in violation of the federal Sherman Act, various state antitrust laws, and various state consumer protection statutes. The United States also has been granted leave to intervene in the cases. On April 6, 2017, the Judicial Panel on Multidistrict Litigation (the “JPML”) ordered that all of the cases alleging price-fixing for generic drugs be consolidated for pretrial proceedings in the United States District Court for the Eastern District of Pennsylvania under the caption In re: Generic Pharmaceuticals Pricing Antitrust Litigation. The various plaintiffs are grouped into three categories — Direct Purchaser Plaintiffs, End Payer Plaintiffs, and Indirect Reseller Purchasers — and filed Consolidated Amended Complaints (“CACs”) against the Company and the other defendants on August 15, 2017. The CACs naming the Company as a defendant involve generic digoxin, levothyroxine, ursodiol and baclofen. Pursuant to a court-ordered schedule grouping the 18 different drug cases into three separate tranches, the Company and other generic pharmaceutical manufacturer defendants on October 6, 2017 filed joint and individual motions to dismiss the CACs involving the six drugs in the first tranche, including digoxin. On October 16, 2018, the Court (with one exception) denied defendants’ motions to dismiss plaintiffs’ Sherman Act claims with respect to the drugs in the first tranche. On March 15, 2019, the Company and other defendants filed answers to the Sherman Act claims. In addition, on February 15, 2019, the Court granted defendants’ motions to dismiss certain of the plaintiffs’ state law claims brought under the laws of Illinois, Rhode Island, Georgia, South Carolina, Montana, West Virginia, Alabama, New Jersey, Michigan and Nevada, but denied the remainder of defendants’ motions to dismiss. The Court set a deadline of April 1, 2019 for certain plaintiffs to amend their existing complaints to reflect the rulings set forth in the Court’s February 15, 2019 ruling on the state law motions to dismiss. Those plaintiffs amended their complaints, but further motions to dismiss the state-law claims have been deferred until the Court decides pending motions to dismiss with respect to the plaintiffs’ various overarching-conspiracy claims. On January 22, 2018, three opt-out direct purchasers filed a complaint alleging an overarching conspiracy and individual conspiracies against the Company and numerous other defendants to fix the prices of and allocate markets for at least 30 different drugs, including digoxin, doxycycline, levothyroxine, ursodiol and baclofen. On August 3, 2018, another opt-out direct purchaser filed a complaint alleging an overarching conspiracy and individual conspiracies against the Company and numerous other defendants to fix the prices of and allocate markets for 16 different drugs, including digoxin, doxycycline, levothyroxine, ursodiol and baclofen. On February 21, 2019, the Company and the other defendants filed motions to dismiss the overarching conspiracy claims. On August 15, 2019, the Court denied the defendants' joint motion to dismiss the overarching conspiracy claims, but has yet to decide an individual motion filed by the Company to dismiss the overarching conspiracy claims as to it. On January 16, 2019, another opt-out direct purchaser filed a complaint alleging an overarching conspiracy and individual conspiracies on behalf of the Company and numerous other defendants to fix the prices of and allocate markets for the 30 different drugs, including digoxin, doxycycline, levothyroxine, ursodiol, baclofen and acetazolamide. None of the defendants, including the Company, has responded yet to this particular complaint. On July 29, 2019, a group of insurance company opt-out plaintiffs commenced an action against the Company and numerous other defendants by filing a writ of summons in the Court of Common Pleas of Philadelphia County, Pennsylvania, but have yet to file a complaint. The parties have since entered into a stipulation to defer any action in the state court case indefinitely pending further developments in the federal multidistrict litigation. On October 11, 2019, one of the opt-out direct purchasers filed another complaint in federal court in Minnesota alleging an overarching conspiracy and individual conspiracies on behalf of the Company to fix the prices of and allocate markets for dozens of different drugs, including baclofen. That complaint has since been added to the multidistrict litigation in Pennsylvania. On October 18, 2019, another of the opt-out direct purchasers filed another complaint alleging an overarching conspiracy and individual conspiracies on behalf of the Company to fix the prices of and allocate markets for over 100 drugs, including glyburide. None of the defendants, including the Company, has responded yet to these opt-out complaints. In addition to the lawsuits brought by private plaintiffs, the Attorneys General of 48 states, the District of Columbia and Puerto Rico have filed parens patriae lawsuits alleging price-fixing conspiracies by various generic pharmaceutical manufacturers. The JPML has consolidated the suits by the state Attorneys General in the Eastern District of Pennsylvania as part of the multidistrict litigation. The original lawsuits did not name the Company, but the state Attorneys General filed an amended complaint on June 18, 2018 to add numerous additional defendants, including the Company, and claims relating to 13 additional drugs. The claim relating to the Company involves alleged price-fixing for one drug, doxycycline monohydrate, although the state Attorneys General allege that all defendants were part of an overarching, industry-wide conspiracy to allocate markets and fix prices generally. On February 21, 2019, the Company and the other defendants filed motions to dismiss the overarching conspiracy claims. On August 15, 2019, the Court denied the defendants' joint motion to dismiss the overarching conspiracy claims, but has yet to decide an individual motion filed by the Company to dismiss the overarching conspiracy claims as to it. Additionally, on May 5, 2019, the state Attorneys General filed a new complaint in Connecticut alleging price-fixing conspiracies by the Company and various generic pharmaceutical manufacturers and individuals relating to more than 40 additional drugs. The complaint has since been added to the multidistrict litigation in the Eastern District of Pennsylvania. The additional claims relating to the Company involve baclofen and levothyroxine, although the state Attorneys General allege that all defendants were part of an overarching, industry-wide conspiracy to allocate markets and fix prices generally. None of the defendants, including the Company, has responded yet to this particular complaint. Following the lead of the state Attorneys General, the Direct Purchaser Plaintiffs, End Payer Plaintiffs and Indirect Reseller Plaintiffs have filed their own complaints also alleging an overarching conspiracy, making similar allegations to those contained in the state Attorneys General complaint, relating to 14 generic drugs in the End Payer complaint and 15 generic drugs in the Indirect Reseller complaint. The End Payer Plaintiffs filed their complaint on June 7, 2018, the Indirect Reseller Plaintiffs filed their complaint on June 18, 2018, and the Direct Purchaser Plaintiffs filed their complaint on June 22, 2018. Although the complaints allege an overarching conspiracy with respect to all of the drugs identified, the specific allegations related to drugs Lannett manufactures involve acetazolamide and doxycycline monohydrate. On February 21, 2019, the Company and the other defendants filed motions to dismiss the overarching conspiracy claims. On August 15, 2019, the Court denied the defendants' joint motion to dismiss the overarching conspiracy claims, but has yet to decide an individual motion filed by the Company to dismiss the overarching conspiracy claims as to it. On September 25, 2018, two other alleged direct purchasers filed a purported class action complaint alleging an overreaching, industry-wide horizontal and vertical conspiracy involving the company, numerous other generic pharmaceutical manufacturers, and various pharmaceutical distributors to allocate markets and fix prices generally for a variety of generic drugs. The case has been added to the multidistrict litigation. On December 21, 2018, the plaintiffs filed an amended complaint. On February 21, 2019, the Company and the other defendants filed motions to dismiss the overarching conspiracy claims. On August 15, 2019, the Court denied the defendants' joint motion to dismiss the overarching conspiracy claims, but has yet to decide an individual motion filed by the Company to dismiss the overarching conspiracy claims as to it. The Company believes that it acted in compliance with all applicable laws and regulations. Accordingly, the Company disputes the allegations set forth in these class actions and plans to vigorously defend itself from these claims. Shareholder Litigation In November 2016, a putative class action lawsuit was filed against the Company and two of its officers in the federal court for the Eastern District of Pennsylvania, alleging that the Company damaged the purported class by including in its securities filings false and misleading statements regarding the Company’s drug pricing methodologies and internal controls. An amended complaint was filed in May 2017, and the Company filed a motion to dismiss the amended complaint in September 2017. In December 2017, counsel for the putative class filed a second amended complaint, and the Court denied as moot the Company’s motion to dismiss the first amended complaint. The Company filed a motion to dismiss the second amended complaint in February 2018. In July 2018, the court granted the Company’s motion to dismiss the second amended complaint. In September 2018, counsel for the putative class filed a third amended complaint. The Company filed a motion to dismiss the third amended complaint in November 2018. In May 2019, the court denied the Company’s motion to dismiss the third amended complaint. In July 2019, the Company filed an answer to the third amended complaint. The Company believes it acted in compliance with all applicable laws and plans to vigorously defend itself from these claims. The Company cannot reasonably predict the outcome of the suit at this time. In October 2018, a putative class action lawsuit was filed against the Company and two of its officers in the federal court for the Eastern District of Pennsylvania, alleging that the Company, its Chief Executive Officer and its former Chief Financial Officer damaged the purported class by making false and misleading statements in connection with the possible renewal of the JSP Distribution Agreement. In December 2018, counsel for the putative class filed an amended complaint. The Company moved to dismiss the amended complaint in January 2019. In March 2019, the Court granted in part and denied in part the Company’s motion to dismiss. In May 2019, the Company filed an answer to the amended complaint. During May and June 2019, the parties negotiated a proposed settlement and agreed to settle the litigation, by which the Company agreed to pay the sum of $300,000 without an admission of liability and subject to the negotiation of the terms of a stipulation of settlement and approval by the Court. In July 2019, counsel for the putative class filed a motion for preliminary approval of the proposed settlement and on July 31, 2019, the Court issued an Order granting the motion and scheduling a hearing for final approval of the settlement for February 7, 2020. In May 2019, a shareholder derivative lawsuit was filed against certain of the Company’s current and former officers and certain of the current and former members of the Company’s Board of Directors in the federal court for the District of Delaware. The Company was also named as a nominal defendant in the suit. The suit alleges that the defendants breached their fiduciary duties as directors and/or officers of the Company, that certain of the defendants caused the Company to issue false and misleading proxy statements in violation of Section 14(a) of the Securities Exchange Act of 1934, that the defendants were unjustly enriched at the expense of the Company, and that the defendants wasted corporate assets belonging to the Company. The Company cannot reasonably predict the outcome of the suit at this time. In July 2019, a shareholder derivative lawsuit was filed against certain of the Company’s current and former officers and directors in the federal court for the Eastern District of Pennsylvania. The Company was also named as a nominal defendant in the suit. The suit alleges that the defendants breached their fiduciary duties as directors and/or officers of the Company and that certain of the defendants caused the Company to violate Sections 10(b), 14(a), and 29(b) of the Securities Exchange Act of 1934. In October 2019, this suit was transferred to the federal court for the District of Delaware and is pending before the same judge presiding over the shareholder derivative suit that was filed in May 2019. The Company cannot reasonably predict the outcome of the suit at this time. In September 2019, a shareholder derivative lawsuit was filed against certain of the Company’s current and former officers, directors and employees in the federal court for the District of Delaware. The Company was also named as a nominal defendant in the suit. The suit alleges that the defendants breached their fiduciary duties as directors and/or officers of the Company, alleges waste of corporate assets and gross mismanagement, and alleges that certain of the defendants caused the Company to violate Section 14(a) of the Securities and Exchange Act of 1934. The Company cannot reasonably predict the outcome of the suit at this time. Genus Life Sciences In December 2018, Genus Lifesciences, Inc. (“Genus”) sued the Company, Cody Labs, and others in California federal court, alleging violations of the Lanham Act, Sherman Act, and California false advertising law. Genus received FDA approval for a cocaine hydrochloride product in December 2018, and its claims are premised in part on allegations that the Company falsely advertises its unapproved cocaine hydrochloride solution product. The Company denies that it is falsely advertising its cocaine hydrochloride solution product and continues to market its unapproved product relying on the Guidance for FDA Staff and Industry, Marketed Unapproved Drugs — Compliance Policy Guide, pending approval of its Section 505(b)(2) application. In January 2019, the Company filed a motion to dismiss the complaint. On May 3, 2019, the Court issued a written decision granting in part and denying in part the motion to dismiss. On June 6, 2019, Genus filed an Amended Complaint. On June 27, 2019, the Company filed a motion to dismiss the amended complaint. By Order dated September 3, 2019, the Court granted in part and denied in part the Company's motion to dismiss. The Company believes it acted in compliance with all applicable laws and regulations and plans to vigorously defend itself from these claims. Discovery is ongoing and the Company cannot reasonably predict the outcome of this suit at this time. Other Litigation Matters The Company is also subject to various legal proceedings arising out of the normal course of its business including, but not limited to, product liability, intellectual property, patent infringement claims and antitrust matters. It is not possible to predict the outcome of these various proceedings. An adverse determination in any of these proceedings in the future could have a significant impact on the financial position, results of operations and cash flows of the Company.

Commitments

Commitments	3 Months Ended
	Sep. 30, 2019
Commitments
Commitments	Note 12. Commitments Leases In the first quarter of Fiscal 2020, the Company recorded a ROU lease asset totaling $1.2 million related to an existing lease at Cody Labs upon adoption of ASU No. 2016-02. The Company subsequently recorded a full impairment of the asset as a result of the decision to cease operations at Cody Labs. At September 30, 2019, the Company has a ROU lease asset of $6.4 million and a ROU liability of $7.5 million, of which $1.9 million and $5.6 million represent the current and non-current balance, respectively. Components of lease cost are as follows: Three Months Ended (In thousands) September 30, 2019 Operating lease cost $ 481 Variable lease cost 28 Short-term lease cost (a) 156 Total $ 665 (a) Not recorded on the Consolidated Balance Sheet. Supplemental cash flow information and non-cash activity related to our operating leases are as follows: Three Months Ended (In thousands) September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 481 Non-cash activity: ROU assets obtained in exchange for new operating lease liabilities $ — Weighted-average remaining lease term and discount rate for our operating leases are as follows: Three Months Ended September 30, 2019 Weighted-average remaining lease term 9 years Weighted-average discount rate 7.50 % Maturities of lease liabilities by fiscal year for our operating leases are as follows: (In thousands) Amounts Due Remainder of 2020 $ 1,460 2021 1,487 2022 1,169 2023 1,169 2024 1,169 Thereafter 3,929 Total lease payments 10,383 Less: Imputed interest 2,825 Present value of lease liabilities $ 7,558 As of June 30, 2019, future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) for the twelve-month periods ending June 30 thereafter are as follows: (In thousands) Amounts Due 2020 $ 1,898 2021 1,450 2022 1,123 2023 1,123 2024 1,123 Thereafter 3,839 Total $ 10,556 Other Commitment During the third quarter of Fiscal 2017, the Company signed an agreement with a company operating in the pharmaceutical business, under which the Company agreed to provide up to $15.0 million in revolving loans, which expires in seven years and bears interest at 2.0%, for the purpose of expansion and other business needs. The decision to provide any portion of the revolving loan is at the Company’s sole discretion. Prior to the first quarter of Fiscal 2019, the Company had the option to convert the first $7.5 million into a 50% ownership interest in the entity. The board of the entity is comprised of five members, one of which is an employee of the Company. In the first quarter of Fiscal 2019, the Company sold 50% of the outstanding loan to a third party for $5.6 million and, in addition to assigning 50% of all right, title and interest in the loan and loan documents, the Company relinquished its right to convert a portion of the outstanding loan balance to an equity interest in the entity. As of September 30, 2019, $6.1 million was outstanding under the revolving loan and is included in other assets. Based on the guidance set forth in ASC 810-10 Consolidation, the Company has concluded that it has a variable interest in the entity. However, the Company is not the primary beneficiary to the entity and as such, is not required to consolidate the entity’s results of operations.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	Note 13. Accumulated Other Comprehensive Loss The Company’s Accumulated Other Comprehensive Loss was comprised of the following components as of September 30, 2019 and 2018: September 30, (In thousands) 2019 2018 Foreign Currency Translation Beginning Balance, June 30 $ (615) $ (515) Net gain (loss) gain on foreign currency translation (net of tax of $0 and $0) (46) 6 Reclassifications to net income (net of tax of $0 and $0) — — Other comprehensive income (loss), net of tax (46) 6 Ending Balance, September 30 (661) (509) Total Accumulated Other Comprehensive Loss $ (661) $ (509)

Loss Per Common Share

Loss Per Common Share	3 Months Ended
	Sep. 30, 2019
Loss Per Common Share
Loss Per Common Share	Note 14. Loss Per Common Share A reconciliation of the Company’s basic and diluted loss per common share was as follows: Three Months Ended September 30, (In thousands, except share and per share data) 2019 2018 Numerator: Net loss $ (12,157) $ (287,528) Interest expense applicable to the Notes, net of tax — — Amortization of debt issuance costs applicable to the Notes, net of tax — — Adjusted “if-converted” net loss $ (12,157) $ (287,528) Denominator: Basic weighted average common shares outstanding 38,309,267 37,586,327 Effect of potentially dilutive options and restricted stock awards — — Effect of conversion of the Notes — — Diluted weighted average common shares outstanding 38,309,267 37,586,327 Loss per common share: Basic $ (0.32) $ (7.65) Diluted $ (0.32) $ (7.65) The number of anti-dilutive shares that have been excluded in the computation of diluted loss per share for the three months ended September 30, 2019 and 2018 was 2.9 million and 4.6 million, respectively. The effect of potentially dilutive shares was excluded from the calculation of diluted loss per share in the three months ended September 30, 2019 and 2018 because the effect of including such securities would be anti-dilutive.

Share-based Compensation

Share-based Compensation	3 Months Ended
	Sep. 30, 2019
Share-based Compensation
Share-based Compensation	Note 15. Share-based Compensation At September 30, 2019, the Company had two share-based employee compensation plans (the 2011 Long-Term Incentive Plan “LTIP” and the 2014 “LTIP”). Together these plans authorized an aggregate total of 6.5 million shares to be issued. As of September 30, 2019, the plans have a total of 1.2 million shares available for future issuances. Historically, the Company issued share-based compensation awards with a vesting period ranging up to 3 years and a maximum contractual term of 10 years. Beginning in Fiscal 2020, the Company extended the vesting period of new share-based compensation awards to 4 years. The Company issues new shares of stock when stock options are exercised. As of September 30, 2019, there was $15.1 million of total unrecognized compensation cost related to non-vested share-based compensation awards. That cost is expected to be recognized over a weighted average period of 2.6 years. Stock Options The Company measures share-based compensation cost for options using the Black-Scholes option pricing model. The following table presents the weighted average assumptions used to estimate fair values of the stock options granted during the three months ended September 30, 2019 and 2018, the estimated annual forfeiture rates used to recognize the associated compensation expense and the weighted average fair value of the options granted: September 30, 2019 September 30, 2018 Risk-free interest rate 1.9 % 2.9 % Expected volatility 73.7 % 58.4 % Expected dividend yield — — Forfeiture rate 6.5 % 6.5 % Expected term (in years) years years Weighted average fair value $ 4.04 $ 6.52 Expected volatility is based on the historical volatility of the price of our common shares during the historical period equal to the expected term of the option. The Company uses historical information to estimate the expected term, which represents the period of time that options granted are expected to be outstanding. The risk-free rate for the period equal to the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The forfeiture rate assumption is the estimated annual rate at which unvested awards are expected to be forfeited during the vesting period. This assumption is based on our actual forfeiture rate on historical awards. Periodically, management will assess whether it is necessary to adjust the estimated rate to reflect changes in actual forfeitures or changes in expectations. Additionally, the expected dividend yield is equal to zero, as the Company has not historically issued and has no immediate plans to issue, a dividend. A stock option summary as of September 30, 2019 and changes during the three months then ended, is presented below: Weighted Weighted- Average Average Aggregate Remaining Exercise Intrinsic Contractual (In thousands, except for weighted average price and life data) Awards Price Value Life (yrs.) Outstanding at June 30, 2019 572 $ 17.56 $ 273 5.0 Granted 522 $ 6.57 Exercised (9) $ 9.76 $ 35 Forfeited, expired or repurchased (9) $ 27.63 Outstanding at September 30, 2019 1,076 $ 12.21 $ 3,488 7.2 Vested and expected to vest at September 30, 2019 1,073 $ 12.20 $ 3,488 7.2 Exercisable at September 30, 2019 569 $ 16.18 $ 1,425 5.1 Restricted Stock The Company measures restricted stock compensation costs based on the stock price at the grant date less an estimate for expected forfeitures. The annual forfeiture rate used to calculate compensation expense was 6.5% for the three months ended September 30, 2019 and 2018. A summary of restricted stock awards as of September 30, 2019 and changes during the three months then ended, is presented below: Weighted Average Grant - Aggregate (In thousands, except for weighted average price data) Awards date Fair Value Intrinsic Value Non-vested at June 30, 2019 1,288 $ 11.63 Granted 936 6.44 Vested (575) 10.82 $ 4,634 Forfeited (29) 14.09 Non-vested at September 30, 2019 1,620 $ 8.88 Performance-Based Shares In September 2017, the Company began granting performance-based awards to certain key executives. The stock-settled awards will cliff vest based on relative Total Shareholder Return (“TSR”) over a three-year period. The Company measures share-based compensation cost for TSR awards using a Monte-Carlo simulation model. A summary of performance-based share awards as of September 30, 2019 and changes during the current fiscal year, is presented below: Weighted Average Grant - Aggregate (In thousands, except for weighted average price and life data) Awards date Fair Value Intrinsic Value Non-vested at June 30, 2019 72 $ 19.92 Granted 178 $ 10.71 Vested (46) $ 15.08 $ 477 Forfeited — $ — Non-vested at September 30, 2019 204 $ 12.99 Employee Stock Purchase Plan In February 2003, the Company’s stockholders approved an Employee Stock Purchase Plan (“ESPP”). Employees eligible to participate in the ESPP may purchase shares of the Company’s stock at 85% of the lower of the fair market value of the common stock on the first day of the calendar quarter, or the last day of the calendar quarter. Under the ESPP, employees can authorize the Company to withhold up to 10% of their compensation during any quarterly offering period, subject to certain limitations. The ESPP was implemented on April 1, 2003 and is qualified under Section 423 of the Internal Revenue Code. The Board of Directors authorized an aggregate total of 1.1 million shares of the Company’s common stock for issuance under the ESPP. During the three months ended September 30, 2019 and 2018, 29 thousand shares and 50 thousand shares were issued under the ESPP, respectively. As of September 30, 2019, 821 thousand total cumulative shares have been issued under the ESPP. The following table presents the allocation of share-based compensation costs recognized in the Consolidated Statements of Operations by financial statement line item: Three Months Ended September 30, (In thousands) 2019 2018 Selling, general and administrative $ 3,635 $ 2,213 Research and development 224 201 Cost of sales 600 621 Total $ 4,459 $ 3,035 Tax benefit at statutory rate $ 1,003 $ 683

Employee Benefit Plan

Employee Benefit Plan	3 Months Ended
	Sep. 30, 2019
Employee Benefit Plan
Employee Benefit Plan	Note 16. Employee Benefit Plan The Company has a 401k defined contribution plan (the “Plan”) covering substantially all employees. Pursuant to the Plan provisions, the Company is required to make matching contributions equal to 50% of each employee’s contribution, not to exceed 4% of the employee’s compensation for the Plan year. Contributions to the Plan during the three months ended September 30, 2019 and 2018 was $0.6 million.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	Note 17. Income Taxes The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. The federal, state and local income tax expense for the three months ended September 30, 2019 was $1.8 million compared to an income tax benefit of $75.6 million for the three months ended September 30, 2018. The effective tax rates for the three months ended September 30, 2019 and 2018 were (17.2)% and 20.8%, respectively. The effective tax rate for the three months ended September 30, 2019 was lower compared to the three months ended September 30, 2018 primarily due to research and development credits relative to expected pre-tax income, partially offset by the impact of excess tax shortfalls related to stock compensation. The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of September 30, 2019 and June 30, 2019, the Company has total unrecognized tax benefits of $2.4 million and $2.2 million,respectively, of which $2.2 million and $2.1 million would impact the Company’s effective tax rate, respectively, if recognized. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended September 30, 2019 in the statement of operations and no cumulative interest and penalties have been recorded either in the Company’s statement of financial position as of September 30, 2019 and June 30, 2019. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses. The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2014 and prior generally are no longer subject to review as such years generally are closed. The Company’s Fiscal Year 2016 federal return is currently under examination by the Internal Revenue Service (“IRS”). The Company cannot reasonably predict the outcome of the examination at this time. In July 2018, the Company was notified that the IRS will also expand their examination to include the Company’s Fiscal 2015 and Fiscal 2017 federal returns. In October 2018, the Company was notified that the Commonwealth of Pennsylvania will conduct a routine field audit of the Company’s Fiscal 2016 and Fiscal 2017 corporate tax returns.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 30, 2019
Related Party Transactions
Related Party Transactions	Note 18. Related Party Transactions The Company had sales of $0.7 million and $0.5 million during the three months ended September 30, 2019 and 2018, respectively, to a generic distributor, Auburn Pharmaceutical Company (“Auburn”), which is a member of the Premier Buying Group. Jeffrey Farber, a current board member, is the owner of Auburn. Accounts receivable includes amounts due from Auburn of $0.6 million and $1.2 million at September 30, 2019 and June 30, 2019, respectively. The Company also had sales of $0.7 million and $0.5 million during the three months ended September 30, 2019 and 2018, respectively, to a generic distributor, KeySource, which is a member of the OptiSource Buying Group. Albert Paonessa, a current board member, was appointed the CEO of KeySource in May 2017. Accounts receivable includes amounts due from KeySource of $0.6 million and $0.7 million as of September 30, 2019 and June 30, 2019, respectively.

Assets Held for Sale

Assets Held for Sale	3 Months Ended
	Sep. 30, 2019
Assets Held for Sale
Assets held for Sale	Note 19. Assets Held for Sale In the first quarter of Fiscal 2019, the Company approved a plan to sell the Cody API business, which includes the manufacturing and distribution of active pharmaceutical ingredients for use in finished goods production. As a result of the plan, the Company recorded the assets of the Cody API business at fair value less costs to sell. The Company performed a fair value analysis which resulted in a $29.9 million impairment of the Cody Labs’ long-lived assets in the first quarter of Fiscal 2019. The Company was unable to sell the Cody API business as an ongoing operation and intended to sell the equipment utilized by the Cody API business as well as the real estate upon receiving approval of the Company’s cocaine hydrochloride solution Section 505(b)(2) NDA application and to have Cody Labs cease all operations. In the first quarter of Fiscal 2020, the Company completed the sale of a portion of the equipment associated with the Cody API business for $2.0 million. As of September 30, 2019, the real estate and remaining equipment associated with the Cody API business, totaling $4.6 million, was recorded in the assets held for sale caption in the Consolidated Balance Sheet. The following table summarizes the financial results of the Cody API business for the three months ended September 30, 2019 and 2018: For the Three Months Ended For the Three Months Ended (In thousands) September 30, 2019 September 30, 2018 Net sales $ 1,067 $ 1,488 Pretax loss attributable to Cody API business $ (4,417) $ (35,021) The pretax loss attributable to the Cody API business during the three months ended September 30, 2019 includes a full impairment of the ROU lease asset, totaling $1.2 million, that was recorded upon adoption of ASU No. 2016-02 on July 1, 2019. The pretax loss attributable to the Cody API business during the three months ended September 30, 2018 includes impairment charges totaling $29.9 million to adjust the long-lived assets to its fair value less costs to sell.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”).
Principles of consolidation	Principles of consolidation The Consolidated Financial Statements include the accounts of Lannett Company, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.
Business Combinations	Business Combinations Acquired businesses are accounted for using the acquisition method of accounting, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective estimated fair values. The fair values and useful lives assigned to each class of assets acquired and liabilities assumed are based on, among other factors, the expected future period of benefit of the asset, the various characteristics of the asset and projected future cash flows. Significant judgment is employed in determining the assumptions utilized as of the acquisition date and for each subsequent measurement period. Accordingly, changes in assumptions described above could have a material impact on our consolidated results of operations.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year financial statement presentation.
Use of estimates	Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of revenue recognition and sales deductions for estimated chargebacks, rebates, returns and other adjustments including a provision for the Company’s liability under the Medicare Part D program. Additionally, significant estimates and assumptions are required when determining the fair value of long-lived assets, including intangible assets, income taxes, contingencies and share-based compensation. Because of the inherent subjectivity and complexity involved in these estimates and assumptions, actual results could differ from those estimates.
Foreign currency translation	Foreign currency translation The Consolidated Financial Statements are presented in U.S. Dollars, the reporting currency of the Company. The financial statements of the Company’s foreign subsidiary are maintained in local currency and translated into U.S. dollars at the end of each reporting period. Assets and liabilities are translated at period-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The adjustments resulting from the use of differing exchange rates are recorded as part of stockholders’ equity in accumulated other comprehensive income (loss). Gains and losses resulting from transactions denominated in foreign currencies are recognized in the Consolidated Statements of Operations under Other income (loss). Amounts recorded due to foreign currency fluctuations are immaterial to the Consolidated Financial Statements.
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid investments with original maturities less than or equal to three months at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value, and consist of bank deposits and certificates of deposit that are readily convertible into cash. The Company maintains its cash deposits and cash equivalents at well-known, stable financial institutions. Such amounts frequently exceed insured limits.
Allowance for doubtful accounts	Allowance for doubtful accounts The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time balances are past due, the Company’s previous loss history, the customer’s current ability to pay its obligations to the Company and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable when they are determined to be uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value by the first-in, first-out method. Inventories are regularly reviewed and write-downs for excess and obsolete inventory are recorded based primarily on current inventory levels, expiration date and estimated sales forecasts.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the assets’ estimated useful lives. Repairs and maintenance costs that do not extend the useful life of the asset are expensed as incurred.
Intangible Assets	Intangible Assets Definite-lived intangible assets are stated at cost less accumulated amortization. Amortization of definite-lived intangible assets is computed on a straight-line basis over the assets’ estimated useful lives which commences upon shipment of the product, generally for periods ranging from 10 to 15 years. The Company continually evaluates the reasonableness of the useful lives of these assets. Indefinite-lived intangible assets are not amortized, but instead are tested at least annually for impairment. Costs to renew or extend the term of a recognized intangible asset are expensed as incurred.
Valuation of Long-Lived Assets, including Intangible Assets	Valuation of Long-Lived Assets, including Intangible Assets The Company’s long-lived assets primarily consist of property, plant and equipment and definite and indefinite-lived intangible assets. Property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances (“triggering events”) indicate that the carrying amount of the asset may not be recoverable. If a triggering event is determined to have occurred, the asset’s carrying value is compared to the future undiscounted cash flows expected to be generated by the asset. If the carrying value exceeds the undiscounted cash flows of the asset, then impairment exists. Indefinite-lived intangible assets are tested for impairment at least annually during the fourth quarter of each fiscal year or more frequently if events or triggering events indicate that the asset might be impaired. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, which in most cases is calculated using a discounted cash flow model. Discounted cash flow models are highly reliant on various assumptions which are considered Level 3 inputs, including estimates of future cash flows (including long-term growth rates), discount rates and the probability of achieving the estimated cash flows.
In-Process Research and Development	In-Process Research and Development Amounts allocated to in-process research and development in connection with a business combination are recorded at fair value and are considered indefinite-lived intangible assets subject to impairment testing in accordance with the Company’s impairment testing policy for indefinite-lived intangible assets. As products in development are approved for sale, amounts will be allocated to product rights and will be amortized over their estimated useful lives. Definite-lived intangible assets are amortized over the expected lives of the related assets. The judgments made in determining the estimated fair value of in-process research and development, as well as asset lives, can materially impact our results of operations. The Company’s fair value assessments are highly reliant on various assumptions which are considered Level 3 inputs, including estimates of future cash flows (including long-term growth rates), discount rates and the probability of achieving the estimated cash flows.
Segment Information	Segment Information The Company operates in one reportable segment, generic pharmaceuticals. As such, the Company aggregates its financial information for all products. The table below identifies the Company’s net sales by medical indication for the three months ended September 30, 2019 and 2018. The medical indication categories for the three months ended September 30, 2018 was reclassified to better align with industry standards and the Company’s peers. Three Months Ended (In thousands) September 30, Medical Indication 2019 2018 Analgesic $ 1,884 $ 1,829 Anti-Psychosis 28,034 10,889 Cardiovascular 21,606 21,770 Central Nervous System 19,257 14,286 Endocrinology — 53,878 Gastrointestinal 16,962 17,594 Infectious Disease 11,895 4,480 Migraine 9,143 9,737 Respiratory/Allergy/Cough/Cold 2,707 3,584 Urinary 435 1,541 Other 9,861 10,805 Contract manufacturing revenue 5,558 4,661 Total $ 127,342 $ 155,054
Customer, Supplier and Product Concentration	Customer, Supplier and Product Concentration The following table presents the percentage of total net sales, for the three months ended September 30, 2019 and 2018, for one of the Company’s products, defined as products containing the same active ingredient or combination of ingredients, which accounted for at least 10% of net sales in any of those periods: 2019 2018 Product 1 20 % 6 % Product 2 — % 35 % The following table presents the percentage of total net sales, for the three months ended September 30, 2019 and 2018, for certain of the Company’s customers which accounted for at least 10% of net sales in any of those periods: 2019 2018 Customer A 27 % 18 % Customer B 25 % 29 % Customer C 13 % 7 % The Company’s primary finished goods inventory supplier through March 23, 2019 was Jerome Stevens Pharmaceuticals, Inc. (“JSP”), in Bohemia, New York. Purchases of finished goods inventory from JSP accounted for approximately 32% of the Company’s inventory purchases during the three months ended September 30, 2018. There were no purchases of finished goods inventory from JSP in the first quarter of Fiscal 2020.
Revenue Recognition	Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers , which superseded ASC Topic 605, Revenue Recognition . Under ASC 606, the Company recognizes revenue when (or as) we satisfy our performance obligations by transferring a promised good or service to a customer at an amount that reflects the consideration the Company is expected to be entitled. Our revenue consists almost entirely of sales of our pharmaceutical products to customers, whereby we ship product to a customer pursuant to a purchase order. Revenue contracts such as these do not generally give rise to contract assets or contract liabilities because: (i) the underlying contracts generally have only a single performance obligation and (ii) we do not generally receive consideration until the performance obligation is fully satisfied. The new revenue standard impacts the timing of the Company’s revenue recognition by requiring recognition of certain contract manufacturing arrangements to change from “upon shipment or delivery” to “over time”. However, the recognition of these arrangements over time does not currently have a material impact on the Company’s consolidated results of operations or financial position. The Company adopted ASC 606 using the modified retrospective method. When revenue is recognized, a simultaneous adjustment to gross sales is made for estimated chargebacks, rebates, returns, promotional adjustments and other potential adjustments. These provisions are primarily estimated based on historical experience, future expectations, contractual arrangements with wholesalers and indirect customers and other factors known to management at the time of accrual. Accruals for provisions are presented in the Consolidated Financial Statements as a reduction to gross sales with the corresponding reserve presented as a reduction of accounts receivable or included as rebates payable, depending on the nature of the reserve. Provisions for chargebacks, rebates, returns and other adjustments require varying degrees of subjectivity. While rebates generally are based on contractual terms and require minimal estimation, chargebacks and returns require management to make more subjective assumptions. Each major category is discussed in detail below: Chargebacks The provision for chargebacks is the most significant and complex estimate used in the recognition of revenue. The Company sells its products directly to wholesale distributors, generic distributors, retail pharmacy chains and mail-order pharmacies. The Company also sells its products indirectly to independent pharmacies, managed care organizations, hospitals, nursing homes and group purchasing organizations, collectively referred to as “indirect customers.” The Company enters into agreements with its indirect customers to establish pricing for certain products. The indirect customers then independently select a wholesaler from which to purchase the products. If the price paid by the indirect customers is lower than the price paid by the wholesaler, the Company will provide a credit, called a chargeback, to the wholesaler for the difference between the contractual price with the indirect customers and the wholesaler purchase price. The provision for chargebacks is based on expected sell-through levels by the Company’s wholesale customers to the indirect customers and estimated wholesaler inventory levels. As sales to the large wholesale customers, such as Cardinal Health, AmerisourceBergen and McKesson increase (decrease), the reserve for chargebacks will also generally increase (decrease). However, the size of the increase (decrease) depends on product mix and the amount of sales made to indirect customers with which the Company has specific chargeback agreements. The Company continually monitors the reserve for chargebacks and makes adjustments when management believes that expected chargebacks may differ from the actual chargeback reserve. Rebates Rebates are offered to the Company’s key chain drug store, distributor and wholesaler customers to promote customer loyalty and increase product sales. These rebate programs provide customers with credits upon attainment of pre-established volumes or attainment of net sales milestones for a specified period. Other promotional programs are incentive programs offered to the customers. Additionally, as a result of the Patient Protection and Affordable Care Act (“PPACA”) enacted in the U.S. in March 2010, the Company participates in a new cost-sharing program for certain Medicare Part D beneficiaries designed primarily for the sale of brand drugs and certain generic drugs if their FDA approval was granted under a New Drug Application (“NDA”) or 505(b) NDA versus an abbreviated new drug application ("ANDA’). Drugs purchased within the Medicare Part D coverage gap (commonly referred to as the “donut hole”) result in additional rebates. The Company estimates the reserve for rebates and other promotional credit programs based on the specific terms in each agreement when revenue is recognized. The reserve for rebates increases (decreases) as sales to certain wholesale and retail customers increase (decrease). However, since these rebate programs are not identical for all customers, the size of the reserve will depend on the mix of sales to customers that are eligible to receive rebates. Returns Consistent with industry practice, the Company has a product returns policy that allows customers to return product within a specified time period prior to and subsequent to the product’s expiration date in exchange for a credit to be applied to future purchases. The Company’s policy requires that the customer obtain pre-approval from the Company for any qualifying return. The Company estimates its provision for returns based on historical experience, changes to business practices, credit terms and any extenuating circumstances known to management. While historical experience has allowed for reasonable estimations in the past, future returns may or may not follow historical trends. The Company continually monitors the reserve for returns and makes adjustments when management believes that actual product returns may differ from the established reserve. Generally, the reserve for returns increases as net sales increase. Other Adjustments Other adjustments consist primarily of “price adjustments, also known as “shelf-stock adjustments” and “price protections,” which are both credits issued to reflect increases or decreases in the invoice or contract prices of the Company’s products. In the case of a price decrease, a credit is given for product remaining in customer’s inventories at the time of the price reduction. Contractual price protection results in a similar credit when the invoice or contract prices of the Company’s products increase, effectively allowing customers to purchase products at previous prices for a specified period of time. Amounts recorded for estimated shelf-stock adjustments and price protections are based upon specified terms with direct customers, estimated changes in market prices and estimates of inventory held by customers. The Company regularly monitors these and other factors and evaluates the reserve as additional information becomes available. Other adjustments also include prompt payment discounts and “failure-to-supply” adjustments. If the Company is unable to fulfill certain customer orders, the customer can purchase products from our competitors at their prices and charge the Company for any difference in our contractually agreed upon prices.
Leases	Leases On July 1, 2019, the Company adopted ASC Topic 842, Leases , which superseded ASC Topic 840, Leases . Refer to the “Recent Accounting Pronouncements” section of this footnote for further discussion on the impact of the adoption. Under ASC 842, when the Company enters into a new arrangement, it must determine, at the inception date, whether the arrangement is or contains a lease. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Once a lease has been identified, the Company must determine the lease term, the present value of lease payments and the classification of the lease as either operating or financing. The lease term is determined to be the non-cancelable period including any lessee renewal options which are considered to be reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants The present value of lease payments includes fixed and certain variable payments, less lease incentives, together with amounts probable of being owed by the Company under residual value guarantees and, if reasonably certain of being paid, the cost of certain renewal options and early termination penalties set forth in the lease arrangement. To calculate the present value of lease payments, we use our incremental borrowing rate based on the information available at commencement date, as the rate implicit in the lease is generally not readily available. In making the determination of whether a lease is an operating lease or a finance lease, the Company considers the lease term in relation to the economic life of the leased asset, the present value of lease payments in relation to the fair value of the leased asset and certain other factors. Upon the commencement of the lease, the Company will record a lease liability and right-of-use (“ROU”) asset based on the present value of the future minimum lease payments over the lease term at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. For operating leases, a single lease cost is generally recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term unless an impairment has been recorded with respect to a leased asset. For finance leases, amortization expense and interest expense are recognized separately in the Consolidated Statements of Operations, with amortization expense generally recorded on a straight-line basis and interest expense recorded using the effective interest method. Variable lease costs not initially included in the lease liability and ROU asset impairment charges are expensed as incurred.
Cost of Sales, including Amortization of Intangibles	Cost of Sales, including Amortization of Intangibles Cost of sales includes all costs related to bringing products to their final selling destination, which includes direct and indirect costs, such as direct material, labor and overhead expenses. Additionally, cost of sales includes product royalties, depreciation, amortization and costs to renew or extend recognized intangible assets, freight charges and other shipping and handling expenses.
Research and Development	Research and Development Research and development costs are expensed as incurred, including all production costs until a drug candidate is approved by the Food and Drug Administration ("FDA"). Research and development expenses include costs associated with internal projects as well as costs associated with third-party research and development contracts.
Contingencies	Contingencies Loss contingencies, including litigation-related contingencies, are included in the Consolidated Statements of Operations when the Company concludes that a loss is both probable and reasonably estimable. Legal fees for litigation-related matters are expensed as incurred and included in the Consolidated Statements of Operations under the Selling, general and administrative expenses line item.
Restructuring Costs	Restructuring Costs The Company records charges associated with approved restructuring plans to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations and contract cancellation costs. The Company records restructuring charges based on estimated employee terminations, site closure and consolidation plans. The Company accrues severance and other employee separation costs under these actions when it is probable that a liability exists and the amount is reasonably estimable.
Share-based Compensation	Share-based Compensation Share-based compensation costs are recognized over the vesting period, using a straight-line method, based on the fair value of the instrument on the date of grant less an estimate for expected forfeitures. The Company uses the Black-Scholes valuation model to determine the fair value of stock options, the stock price on the grant date to value restricted stock and the Monte-Carlo simulation model to determine the fair value of performance-based shares. The Black-Scholes valuation and Monte-Carlo simulation models include various assumptions, including the expected volatility, the expected life of the award, dividend yield and the risk-free interest rate as well as performance assumptions of peer companies. These assumptions involve inherent uncertainties based on market conditions which are generally outside the Company’s control. Changes in these assumptions could have a material impact on share-based compensation costs recognized in the consolidated financial statements.
Self-Insurance	Self-Insurance The Company self-insures for certain employee medical and prescription benefits. The Company also maintains stop loss coverage with third party insurers to limit its total liability exposure. The liability for self-insured risks is primarily calculated using independent third-party actuarial valuations which take into account actual claims, claims growth and claims incurred but not yet reported. Actual experience, including claim frequency and severity as well as health-care inflation, could result in different liabilities than the amounts currently recorded. The liability for self-insured risks under this plan as of September 30, 2019 totaled $1.5 million and was not material to the financial position of the Company as of June 30, 2019.
Income Taxes	Income Taxes The Company uses the liability method to account for income taxes as prescribed by ASC 740, Income Taxes . Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates in the period during which they are signed into law. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Under ASC 740, Income Taxes , a valuation allowance is required when it is more likely than not that all or some portion of the deferred tax assets will not be realized through generating sufficient future taxable income. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company’s effective tax rate on future earnings. The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The authoritative accounting standards also provide guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. On December 22, 2017, President Trump signed the Tax Cut and Jobs Act legislation (“2017 Tax Reform”) into law, which included a broad range of tax reform provisions affecting businesses, including corporate tax rates, business deductions and international tax provisions. Many of these provisions significantly differ from the then-current U.S. tax law, resulting in pervasive financial reporting implications. As a result of the new law, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of 2017 Tax Reform. SAB 118 requires registrants to report the tax effects of 2017 Tax Reform, inclusive of provisional amounts for which the accounting is incomplete but a reasonable estimate can be determined. In the second quarter of Fiscal 2019, the Company finalized the provisional amounts without any further adjustments.
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share A dual presentation of basic and diluted earnings (loss) per common share is required on the face of the Company's Consolidated Statement of Operations as well as a reconciliation of the computation of basic earnings (loss) per common share to diluted earnings (loss) per common share. Basic earnings (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Beginning in the first quarter of Fiscal 2020, the Company's diluted earnings (loss) per common share is computed using the "if-converted" method by dividing the adjusted "if-converted" net income by the adjusted weighted average number of shares of common stock outstanding during the period. The adjusted "if-converted" net income is adjusted for interest expense and amortization of debt issuance costs, both net of tax, associated with the Company’s 4.50% Convertible Senior Notes due 2026. The weighted average number of diluted shares is adjusted for the potential dilutive effect of the exercise of stock options, treats unvested restricted stock and performance-based shares as if it were vested, and assumes the conversion of the 4.50% Convertible Senior Notes. Anti-dilutive securities are excluded from the calculation. Dilutive shares are also excluded in the calculation in periods of net loss because the effect of including such securities would be anti-dilutive.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company’s stockholders. Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss), but excluded from income (loss) for all amounts are recorded directly as an adjustment to stockholders’ equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires an entity to recognize ROU assets and liabilities on its balance sheet for all leases with terms longer than 12 months. Lessees and lessors are required to disclose quantitative and qualitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and requires a modified retrospective application, with early adoption permitted. The Company adopted ASU 2016-02 as of July 1, 2019 on a modified retrospective basis applying the guidance to leases existing as of this effective date. The Company has determined that there was no cumulative-effect adjustment to beginning retained earnings on the consolidated balance sheet. The Company will continue to report periods prior to July 1, 2019 in our financial statements under prior guidance as outlined in Topic 840. Refer to Note 12 "Commitments" for additional information. The Company’s adoption of ASU No. 2016-02 resulted in an increase in the Company’s assets and liabilities of $7.9 million at July 1, 2019. The Company’s adoption of ASU No. 2016-02 did not have any impact to the Company’s consolidated statements of operations, or its consolidated statements of cash flows. Further, there was no impact on the Company’s covenant compliance under its current debt agreements as a result of the adoption of ASU No. 2016-02. The Company elected the package of practical expedients included in this guidance, which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company does not recognize short-term leases of 12 months or less on its consolidated balance sheets and will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Schedule of the Company's net sales by medical indication	Three Months Ended (In thousands) September 30, Medical Indication 2019 2018 Analgesic $ 1,884 $ 1,829 Anti-Psychosis 28,034 10,889 Cardiovascular 21,606 21,770 Central Nervous System 19,257 14,286 Endocrinology — 53,878 Gastrointestinal 16,962 17,594 Infectious Disease 11,895 4,480 Migraine 9,143 9,737 Respiratory/Allergy/Cough/Cold 2,707 3,584 Urinary 435 1,541 Other 9,861 10,805 Contract manufacturing revenue 5,558 4,661 Total $ 127,342 $ 155,054
Summary of products which accounted for at least 10% of total net sales	2019 2018 Product 1 20 % 6 % Product 2 — % 35 %
Summary of customers which accounted for at least 10% of total net sales	2019 2018 Customer A 27 % 18 % Customer B 25 % 29 % Customer C 13 % 7 %

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Sep. 30, 2019
Cody Restructuring Plan
Schedule of restructuring charges associated with restructuring program	Three Months Ended Three Months Ended (In thousands) September 30, 2019 September 30, 2018 Employee separation costs $ — $ 144 Facility closure costs — — Total $ — $ 144
Schedule of reconciliation of changes in restructuring liabilities associated with restructuring program	Employee Facility Closure (In thousands) Separation Costs Costs Total Balance at June 30, 2019 $ 108 $ — $ 108 Restructuring Charges — — — Payments (108) — (108) Balance at September 30, 2019 $ — — $ —
Cody API Restructuring Plan
Schedule of restructuring charges associated with restructuring program	Three Months Ended (In thousands) September 30, 2019 Employee separation costs $ 892 Facility closure costs 496 Total $ 1,388
Schedule of reconciliation of changes in restructuring liabilities associated with restructuring program	Contract Employee Termination Facility Closure (In thousands) Separation Costs Costs Costs Total Balance at June 30, 2019 $ 2,207 $ — $ — $ 2,207 Restructuring Charges 892 — 496 1,388 Payments (1,932) — (496) (2,428) Balance at September 30, 2019 $ 1,167 $ — — $ 1,167
2016 Restructuring Program
Schedule of restructuring charges associated with restructuring program	Three Months Ended (In thousands) September 30, 2018 Employee separation costs $ 414 Facility closure costs 464 Total $ 878

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Sep. 30, 2019
Accounts Receivable
Schedule of accounts receivable	September 30, June 30, (In thousands) 2019 2019 Gross accounts receivable $ 362,309 $ 361,323 Less: Chargebacks reserve (83,483) (89,567) Less: Rebates reserve (31,473) (32,099) Less: Returns reserve (53,992) (55,554) Less: Other deductions (19,109) (18,128) Less: Allowance for doubtful accounts (1,143) (1,223) Accounts receivable, net $ 173,109 $ 164,752
Schedule of major category of revenue-related reserves	Reserve Category (In thousands) Chargebacks Rebates Returns Other Total Balance at June 30, 2019 $ 89,567 $ 78,274 $ 55,554 $ 18,128 $ 241,523 Current period provision 207,933 58,509 3,694 12,705 282,841 Credits issued during the period (214,017) (61,952) (5,256) (11,724) (292,949) Balance at September 30, 2019 $ 83,483 $ 74,831 $ 53,992 $ 19,109 $ 231,415 Reserve Category (In thousands) Chargebacks Rebates Returns Other Total Balance at June 30, 2018 $ 153,034 $ 82,502 $ 43,059 $ 20,021 $ 298,616 Adjustment related to adoption of ASC 606 — — — 3,536 3,536 Current period provision 277,949 64,749 7,347 13,889 363,934 Credits issued during the period (305,407) (76,626) (6,045) (13,146) (401,224) Balance at September 30, 2018 $ 125,576 $ 70,625 $ 44,361 $ 24,300 $ 264,862

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2019
Inventories
Schedule of Inventories	September 30, June 30, (In thousands) 2019 2019 Raw Materials $ 59,115 $ 56,740 Work-in-process 14,359 18,988 Finished Goods 75,688 68,243 Total $ 149,162 $ 143,971

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment
Schedule of property, plant and equipment	September 30, June 30, (In thousands) Useful Lives 2019 2019 Land — $ 1,783 $ 1,783 Building and improvements 10 - 39 years 89,901 87,609 Machinery and equipment 5 - 10 years 158,555 156,166 Furniture and fixtures 5 - 7 years 3,110 3,105 Less accumulated depreciation (89,182) (83,424) 164,167 165,239 Construction in progress 20,722 21,431 Property, plant and equipment, net $ 184,889 $ 186,670

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets
Summary of intangible assets, net	Weighted Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Avg. Life September 30, June 30, September 30, June 30, September 30, June 30, (In thousands) (Yrs.) 2019 2019 2019 2019 2019 2019 Definite-lived: Cody Labs import license 15 $ 581 $ 581 $ (434) $ (424) $ 147 $ 157 KUPI product rights 15 416,154 416,154 (104,519) (97,583) 311,635 318,571 KUPI trade name 2 2,920 2,920 (2,920) (2,920) — — KUPI other intangible assets 15 19,000 19,000 (4,878) (4,562) 14,122 14,438 Silarx product rights 15 10,000 10,000 (2,889) (2,722) 7,111 7,278 Other product rights 13 30,192 26,579 (3,954) (4,243) 26,238 22,336 Total definite-lived $ 478,847 $ 475,234 $ (119,594) $ (112,454) $ 359,253 $ 362,780 Indefinite-lived: KUPI in-process research and development — $ 18,000 $ 18,000 $ — $ — $ 18,000 $ 18,000 Silarx in-process research and development — 18,000 18,000 — — 18,000 18,000 Other product rights — 32,000 12,449 — — 32,000 12,449 Total indefinite-lived 68,000 48,449 — — 68,000 48,449 Total intangible assets, net $ 546,847 $ 523,683 $ (119,594) $ (112,454) $ 427,253 $ 411,229
Summary of future annual amortization expense	(In thousands) Fiscal Year Ending June 30, Amortization Expense 2020 $ 24,228 2021 32,304 2022 32,304 2023 32,304 2024 31,967 Thereafter 206,146 $ 359,253

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Sep. 30, 2019
Long-Term Debt
Summary of long-term debt, net	September 30, June 30, (In thousands) 2019 2019 Term Loan A due 2020; 7.04% as of September 30, 2019 $ 69,469 $ 153,933 Unamortized discount and other debt issuance costs (1,713) (4,722) Term Loan A, net 67,756 149,211 Term Loan B due 2022; 7.42% as of September 30, 2019 602,366 614,468 Unamortized discount and other debt issuance costs (31,611) (34,631) Term Loan B, net 570,755 579,837 4.50% Convertible Senior Notes due 2026 86,250 — Unamortized discount and other debt issuance costs (3,484) — 4.50% Convertible Senior Notes, net 82,766 — Revolving Credit Facility due 2020 — — Total debt, net 721,277 729,048 Less short-term borrowings and current portion of long-term debt (66,845) (66,845) Total long-term debt, net $ 654,432 $ 662,203
Summary of long-term debt amounts due	Amounts Payable (In thousands) to Institutions 2020 $ 66,845 2021 81,314 2022 39,345 2023 484,331 Thereafter 86,250 Total $ 758,085

Commitments (Tables)

Commitments (Tables)	3 Months Ended
	Sep. 30, 2019
Commitments
Schedule of components of lease cost	Three Months Ended (In thousands) September 30, 2019 Operating lease cost $ 481 Variable lease cost 28 Short-term lease cost (a) 156 Total $ 665 (a) Not recorded on the Consolidated Balance Sheet.
Schedule of supplemental cash flow information and non-cash activity	Three Months Ended (In thousands) September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 481 Non-cash activity: ROU assets obtained in exchange for new operating lease liabilities $ —
Schedule of weighted-average remaining lease term	Three Months Ended September 30, 2019 Weighted-average remaining lease term 9 years Weighted-average discount rate 7.50 %
Schedule of maturities of lease liabilities	(In thousands) Amounts Due Remainder of 2020 $ 1,460 2021 1,487 2022 1,169 2023 1,169 2024 1,169 Thereafter 3,929 Total lease payments 10,383 Less: Imputed interest 2,825 Present value of lease liabilities $ 7,558
Schedule of future minimum lease payments under noncancelable operating leases	(In thousands) Amounts Due 2020 $ 1,898 2021 1,450 2022 1,123 2023 1,123 2024 1,123 Thereafter 3,839 Total $ 10,556

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Loss
Schedule of Accumulated Other Comprehensive Loss	September 30, (In thousands) 2019 2018 Foreign Currency Translation Beginning Balance, June 30 $ (615) $ (515) Net gain (loss) gain on foreign currency translation (net of tax of $0 and $0) (46) 6 Reclassifications to net income (net of tax of $0 and $0) — — Other comprehensive income (loss), net of tax (46) 6 Ending Balance, September 30 (661) (509) Total Accumulated Other Comprehensive Loss $ (661) $ (509)

Loss Per Common Share (Tables)

Loss Per Common Share (Tables)	3 Months Ended
	Sep. 30, 2019
Loss Per Common Share
Summary of reconciliation of the Company's basic and diluted earnings (loss) per common share	Three Months Ended September 30, (In thousands, except share and per share data) 2019 2018 Numerator: Net loss $ (12,157) $ (287,528) Interest expense applicable to the Notes, net of tax — — Amortization of debt issuance costs applicable to the Notes, net of tax — — Adjusted “if-converted” net loss $ (12,157) $ (287,528) Denominator: Basic weighted average common shares outstanding 38,309,267 37,586,327 Effect of potentially dilutive options and restricted stock awards — — Effect of conversion of the Notes — — Diluted weighted average common shares outstanding 38,309,267 37,586,327 Loss per common share: Basic $ (0.32) $ (7.65) Diluted $ (0.32) $ (7.65)

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Sep. 30, 2019
Share-based Compensation
Schedule of weighted average assumptions used to estimate fair values of the stock options granted and the estimated annual forfeiture rates used to recognize the associated compensation expense and the weighted average fair value of the options granted	September 30, 2019 September 30, 2018 Risk-free interest rate 1.9 % 2.9 % Expected volatility 73.7 % 58.4 % Expected dividend yield — — Forfeiture rate 6.5 % 6.5 % Expected term (in years) years years Weighted average fair value $ 4.04 $ 6.52
Summary of stock option award activity	Weighted Weighted- Average Average Aggregate Remaining Exercise Intrinsic Contractual (In thousands, except for weighted average price and life data) Awards Price Value Life (yrs.) Outstanding at June 30, 2019 572 $ 17.56 $ 273 5.0 Granted 522 $ 6.57 Exercised (9) $ 9.76 $ 35 Forfeited, expired or repurchased (9) $ 27.63 Outstanding at September 30, 2019 1,076 $ 12.21 $ 3,488 7.2 Vested and expected to vest at September 30, 2019 1,073 $ 12.20 $ 3,488 7.2 Exercisable at September 30, 2019 569 $ 16.18 $ 1,425 5.1
Summary of non-vested restricted stock awards	Weighted Average Grant - Aggregate (In thousands, except for weighted average price data) Awards date Fair Value Intrinsic Value Non-vested at June 30, 2019 1,288 $ 11.63 Granted 936 6.44 Vested (575) 10.82 $ 4,634 Forfeited (29) 14.09 Non-vested at September 30, 2019 1,620 $ 8.88
Schedule of non-vested performance-based shares	Weighted Average Grant - Aggregate (In thousands, except for weighted average price and life data) Awards date Fair Value Intrinsic Value Non-vested at June 30, 2019 72 $ 19.92 Granted 178 $ 10.71 Vested (46) $ 15.08 $ 477 Forfeited — $ — Non-vested at September 30, 2019 204 $ 12.99
Schedule of allocation of share-based compensation costs recognized in the Consolidated Statements of Operations by financial statement line item	Three Months Ended September 30, (In thousands) 2019 2018 Selling, general and administrative $ 3,635 $ 2,213 Research and development 224 201 Cost of sales 600 621 Total $ 4,459 $ 3,035 Tax benefit at statutory rate $ 1,003 $ 683

Assets Held for Sale (Tables)

Assets Held for Sale (Tables)	3 Months Ended
	Sep. 30, 2019
Assets Held for Sale
Schedule of financial results of the Cody API business	For the Three Months Ended For the Three Months Ended (In thousands) September 30, 2019 September 30, 2018 Net sales $ 1,067 $ 1,488 Pretax loss attributable to Cody API business $ (4,417) $ (35,021)

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Intangible Assets (Details)	3 Months Ended
	Sep. 30, 2019
Minimum
Intangible Assets
Estimated useful lives	10 years
Maximum
Intangible Assets
Estimated useful lives	15 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Segment Information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)
Medical Indication Information
Net sales	$ 127,342	$ 155,054
Segment information
Number of reportable segments | segment	1
Analgesic
Medical Indication Information
Net sales	$ 1,884	1,829
Anti-Psychosis
Medical Indication Information
Net sales	28,034	10,889
Cardiovascular
Medical Indication Information
Net sales	21,606	21,770
Central Nervous System
Medical Indication Information
Net sales	19,257	14,286
Endocrinology
Medical Indication Information
Net sales		53,878
Gastrointestinal
Medical Indication Information
Net sales	16,962	17,594
Infectious Disease
Medical Indication Information
Net sales	11,895	4,480
Migraine
Medical Indication Information
Net sales	9,143	9,737
Respiratory/Allergy/Cough/Cold
Medical Indication Information
Net sales	2,707	3,584
Urinary
Medical Indication Information
Net sales	435	1,541
Other
Medical Indication Information
Net sales	9,861	10,805
Contract manufacturing revenue
Medical Indication Information
Net sales	$ 5,558	$ 4,661

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Customer, Supplier and Product Concentration (Details)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net sales | Products | Product
Concentration risk
Concentration risk (as a percent)	20.00%	6.00%
Net sales | Products | Product 2
Concentration risk
Concentration risk (as a percent)		35.00%
Net sales | Customers | Customer A
Concentration risk
Concentration risk (as a percent)	27.00%	18.00%
Net sales | Customers | Customer B
Concentration risk
Concentration risk (as a percent)	25.00%	29.00%
Net sales | Customers | Customer C
Concentration risk
Concentration risk (as a percent)	13.00%	7.00%
Inventory purchases | Suppliers | JSP
Concentration risk
Concentration risk (as a percent)	0.00%	32.00%

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Self Insurance (Details) $ in Millions	Sep. 30, 2019USD ($)
Summary of Significant Accounting Policies
Self-insured risks	$ 1.5

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) $ in Thousands	Sep. 30, 2019USD ($)
Recent Accounting Pronouncements
Right-of-use asset	$ 6,410
Lease Liability	7,558
ASU 2016-02
Recent Accounting Pronouncements
Right-of-use asset	1,200
ASU 2016-02 | Restatement
Recent Accounting Pronouncements
Right-of-use asset	7,900
Lease Liability	$ 7,900

Restructuring Charges - Cody Re

Restructuring Charges - Cody Restructuring Program (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jun. 29, 2018
Restructuring Charges
Restructuring expenses	$ 1,388	$ 1,022
Cody Restructuring Plan
Restructuring Charges
Restructuring expenses		144
Cody Restructuring Plan | Employee separation costs
Restructuring Charges
Estimated restructuring charges				$ 2,500
Restructuring expenses		$ 144
Cody API Restructuring Plan
Restructuring Charges
Estimated restructuring charges			$ 6,000
Restructuring expenses	1,388
Cody API Restructuring Plan | Employee separation costs
Restructuring Charges
Estimated restructuring charges			3,500
Restructuring expenses	892
Cody API Restructuring Plan | Facility closure costs
Restructuring Charges
Estimated restructuring charges			$ 500
Restructuring expenses	$ 496

Restructuring Charges - Cody _2

Restructuring Charges - Cody Restructuring Program - Changes in restructuring liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of the changes in restructuring liabilities
Restructuring charges	$ 1,388	$ 1,022
Cody Restructuring Plan
Reconciliation of the changes in restructuring liabilities
Beginning balance for the period	108
Restructuring charges		144
Payments	(108)
Cody Restructuring Plan | Employee separation costs
Reconciliation of the changes in restructuring liabilities
Beginning balance for the period	108
Restructuring charges		$ 144
Payments	$ (108)

Restructuring Charges - Cody AP

Restructuring Charges - Cody API Restructuring Plan (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Jun. 30, 2019USD ($)employee	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)
Restructuring Charges
Proceeds from sale of equipment		$ 2,000
Restructuring expenses		1,388	$ 1,022
Cody API Restructuring Plan
Restructuring Charges
Positions eliminated | employee	70
Proceeds from sale of equipment		2,000
Estimated restructuring charges	$ 6,000
Restructuring expenses		1,388
Cody API Restructuring Plan | Employee separation costs
Restructuring Charges
Estimated restructuring charges	3,500
Restructuring expenses		892
Cody API Restructuring Plan | Contract termination costs
Restructuring Charges
Estimated restructuring charges	2,000
Restructuring expenses
Cody API Restructuring Plan | Facility closure costs
Restructuring Charges
Estimated restructuring charges	$ 500
Restructuring expenses		$ 496

Restructuring Charges - Cody _3

Restructuring Charges - Cody API Restructuring Plan - Changes in restructuring liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of the changes in restructuring liabilities
Restructuring charges	$ 1,388	$ 1,022
Cody API Restructuring Plan
Reconciliation of the changes in restructuring liabilities
Beginning balance for the period	2,207
Restructuring charges	1,388
Payments	(2,428)
Ending balance for the period	1,167
Employee separation costs | Cody API Restructuring Plan
Reconciliation of the changes in restructuring liabilities
Beginning balance for the period	2,207
Restructuring charges	892
Payments	(1,932)
Ending balance for the period	1,167
Contract termination costs | Cody API Restructuring Plan
Reconciliation of the changes in restructuring liabilities
Beginning balance for the period
Restructuring charges
Payments
Ending balance for the period
Facility closure costs | Cody API Restructuring Plan
Reconciliation of the changes in restructuring liabilities
Restructuring charges	496
Payments	$ (496)

Restructuring Charges - 2016 Re

Restructuring Charges - 2016 Restructuring Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Feb. 01, 2016
Restructuring Charges
Restructuring expenses	$ 1,388	$ 1,022
2016 Restructuring Program
Restructuring Charges
Estimated restructuring charges			$ 21,000
Restructuring expenses		878
2016 Restructuring Program | Employee separation costs
Restructuring Charges
Estimated restructuring charges			11,000
Restructuring expenses		414
2016 Restructuring Program | Contract termination costs
Restructuring Charges
Estimated restructuring charges			1,000
2016 Restructuring Program | Facility closure costs
Restructuring Charges
Estimated restructuring charges			$ 9,000
Restructuring expenses		$ 464

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Accounts receivable
Gross accounts receivable	$ 362,309	$ 361,323
Less: Allowance for doubtful accounts	(1,143)	(1,223)
Accounts receivable, net	173,109	164,752
Chargebacks
Accounts receivable
Less: reserve	(83,483)	(89,567)
Rebates
Accounts receivable
Less: reserve	(31,473)	(32,099)
Returns
Accounts receivable
Less: reserve	(53,992)	(55,554)
Other
Accounts receivable
Less: reserve	$ (19,109)	$ (18,128)

Accounts Receivable - Provision

Accounts Receivable - Provisions (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Chargebacks
Accounts receivable
Provisions	$ 207.9	$ 277.9
Rebates
Accounts receivable
Provisions	58.5	64.7
Returns
Accounts receivable
Provisions	3.7	7.3
Other
Accounts receivable
Provisions	$ 12.7	$ 13.9

Accounts Receivable - Revenue r

Accounts Receivable - Revenue reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Change in revenue related reserves
Balance at the beginning of the period	$ 241,523	$ 298,616
Current period provision	282,841	363,934
Adjustment related to adoption of ASC 606		3,536
Credits issued during the period	(292,949)	(401,224)
Balance at the end of the period	231,415	264,862
Chargebacks
Change in revenue related reserves
Balance at the beginning of the period	89,567	153,034
Current period provision	207,933	277,949
Credits issued during the period	(214,017)	(305,407)
Balance at the end of the period	83,483	125,576
Rebates
Change in revenue related reserves
Balance at the beginning of the period	78,274	82,502
Current period provision	58,509	64,749
Credits issued during the period	(61,952)	(76,626)
Balance at the end of the period	74,831	70,625
Returns
Change in revenue related reserves
Balance at the beginning of the period	55,554	43,059
Current period provision	3,694	7,347
Credits issued during the period	(5,256)	(6,045)
Balance at the end of the period	53,992	44,361
Other
Change in revenue related reserves
Balance at the beginning of the period	18,128	20,021
Current period provision	12,705	13,889
Adjustment related to adoption of ASC 606		3,536
Credits issued during the period	(11,724)	(13,146)
Balance at the end of the period	$ 19,109	$ 24,300

Accounts Receivable - Revenue_2

Accounts Receivable - Revenue reserve additional information (Details) - USD ($) $ in Millions	Jul. 01, 2018	Aug. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
Accounts receivable
Rebate payment related to pricing overcharges			$ 9.4
Indemnified by UCB		$ 8.1	$ 8.1
ASU 2014-09
Accounts receivable
Net adjustment to opening retained earnings and accounts receivable	$ 3.2
Failure-to-supply reserves offset	3.5
Timing of recognition of contract manufacturing arrangements	$ 0.3
Chargebacks
Accounts receivable
Percentage of provision for rebates, chargebacks, returns and other adjustments on gross sales			51.40%	54.00%
Rebates
Accounts receivable
Percentage of provision for rebates, chargebacks, returns and other adjustments on gross sales			14.50%	12.60%
Returns
Accounts receivable
Percentage of provision for rebates, chargebacks, returns and other adjustments on gross sales			0.90%	1.40%
Other
Accounts receivable
Percentage of provision for rebates, chargebacks, returns and other adjustments on gross sales			3.10%	2.70%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Inventories:
Raw Materials	$ 59,115	$ 56,740
Work-in-process	14,359	18,988
Finished Goods	75,688	68,243
Net inventory	$ 149,162	$ 143,971

Inventories - Additional inform

Inventories - Additional information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Excess and Obsolete
Inventories:
Write-down to net realizable value	$ 3.5	$ 3.4

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Property, Plant and Equipment
Less: accumulated depreciation	$ (89,182)		$ (83,424)
Property, plant and equipment, net before construction in progress	164,167		165,239
Property, plant and equipment, net	184,889		186,670
Depreciation expense	5,800	$ 6,600
Assets held for sale	4,637		9,671
Proceeds from divestiture of businesses	2,000
Proceeds from sale of property	4,300
Disposal group held for sale
Property, Plant and Equipment
Impairment of long-lived assets		$ 29,900
Assets held for sale			6,700
Proceeds from divestiture of businesses	4,600
Held in foreign countries
Property, Plant and Equipment
Property, plant and equipment, net	1,000		1,000
Land
Property, Plant and Equipment
Property, plant and equipment, gross	1,783		1,783
Building and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	89,901		87,609
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	158,555		156,166
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	3,110		3,105
Construction in progress
Property, Plant and Equipment
Property, plant and equipment, net	$ 20,722		$ 21,431

Property, Plant and Equipment -

Property, Plant and Equipment - Useful Lives (Details)	3 Months Ended
	Sep. 30, 2019
Building and improvements | Minimum
Property, Plant and Equipment
Useful Lives	10 years
Building and improvements | Maximum
Property, Plant and Equipment
Useful Lives	39 years
Machinery and equipment | Minimum
Property, Plant and Equipment
Useful Lives	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment
Useful Lives	10 years
Furniture and fixtures | Minimum
Property, Plant and Equipment
Useful Lives	5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment
Useful Lives	7 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019
Term loan
Debt Instrument [Line Items]
Estimated fair value of loan	$ 656	$ 724
4.5% Convertible Senior Notes
Debt Instrument [Line Items]
Estimated fair value of loan	$ 87

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Intangible Assets - Definite (Details) - USD ($) $ in Thousands	Oct. 04, 2018	Sep. 30, 2019	Jun. 30, 2019
Finite-Lived Intangible Assets
Impairment of goodwill	$ 339,600
Gross Carrying Amount		$ 478,847	$ 475,234
Accumulated Amortization		(119,594)	(112,454)
Intangible Assets, Net		359,253	362,780
Cody Labs import license
Finite-Lived Intangible Assets
Gross Carrying Amount		581	581
Accumulated Amortization		(434)	(424)
Intangible Assets, Net		$ 147	157
Weighted Avg. Life (Yrs.)		15 years
Product rights | Other Intangible Assets
Finite-Lived Intangible Assets
Gross Carrying Amount		$ 30,192	26,579
Accumulated Amortization		(3,954)	(4,243)
Intangible Assets, Net		$ 26,238	22,336
Weighted Avg. Life (Yrs.)		13 years
Product rights | KUPI
Finite-Lived Intangible Assets
Gross Carrying Amount		$ 416,154	416,154
Accumulated Amortization		(104,519)	(97,583)
Intangible Assets, Net		$ 311,635	318,571
Weighted Avg. Life (Yrs.)		15 years
Product rights | Silarx
Finite-Lived Intangible Assets
Gross Carrying Amount		$ 10,000	10,000
Accumulated Amortization		(2,889)	(2,722)
Intangible Assets, Net		$ 7,111	7,278
Weighted Avg. Life (Yrs.)		15 years
Trade name | KUPI
Finite-Lived Intangible Assets
Gross Carrying Amount		$ 2,920	2,920
Accumulated Amortization		$ (2,920)	(2,920)
Weighted Avg. Life (Yrs.)		2 years
Other Intangible Assets | KUPI
Finite-Lived Intangible Assets
Gross Carrying Amount		$ 19,000	19,000
Accumulated Amortization		(4,878)	(4,562)
Intangible Assets, Net		$ 14,122	$ 14,438
Weighted Avg. Life (Yrs.)		15 years

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Indefinite lived (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Indefinite-lived
Indefinite-lived assets, net	$ 68,000	$ 48,449
Gross Carrying Amount	546,847	523,683
Accumulated Amortization	(119,594)	(112,454)
Intangible assets, net	427,253	411,229
In-process research and development | KUPI
Indefinite-lived
Indefinite-lived assets, net	18,000	18,000
Intangible assets, net	18,000	18,000
In-process research and development | Silarx
Indefinite-lived
Indefinite-lived assets, net	18,000	18,000
Intangible assets, net	18,000	18,000
Other product rights
Indefinite-lived
Indefinite-lived assets, net	32,000	12,449
Intangible assets, net	$ 32,000	$ 12,449

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Future Annual Amortization Expense (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Aug. 31, 2019	Jul. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Finite-Lived Intangible Assets
Amortization expense			$ 7,000	$ 8,200
Future annual amortization expense:
2019			24,228
2020			32,304
2021			32,304
2022			32,304
2023			31,967
Thereafter			206,146
Intangible assets, net			$ 359,253		$ 362,780
Distribution and Supply Agreement | Cediprof
Finite-Lived Intangible Assets
Upfront Payment		$ 20,000
Distribution and Supply Agreement | Sinotherapeutics
Finite-Lived Intangible Assets
Upfront Payment	$ 2,000
Amount Agreed to Pay on Commercial sale	$ 1,500

Long-Term Debt - Net (Details)

Long-Term Debt - Net (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Long-term debt
Debt, gross	$ 758,085
Total debt, net	721,277	$ 729,048
Less short-term borrowings and current portion of long-term debt	(66,845)	(66,845)
Total long-term debt, net	654,432	662,203
Term Loan A due 2020
Long-term debt
Debt, gross	69,469	153,933
Unamortized discount and other debt issuance costs	(1,713)	(4,722)
Total debt, net	$ 67,756	149,211
Interest rate (as a percent)	7.04%
Term Loan B due 2022
Long-term debt
Debt, gross	$ 602,366	614,468
Unamortized discount and other debt issuance costs	(31,611)	(34,631)
Total debt, net	$ 570,755	$ 579,837
Interest rate (as a percent)	7.42%
Convertible Senior Notes Due 2026
Long-term debt
Debt, gross	$ 86,250
Unamortized discount and other debt issuance costs	(3,484)
Total debt, net	$ 82,766
Interest rate (as a percent)	4.50%	4.50%

Long-Term Debt - Due (Details)

Long-Term Debt - Due (Details) $ in Thousands	Sep. 30, 2019USD ($)
Debt maturities
2019	$ 66,845
2020	81,314
2021	39,345
2022	484,331
2023	86,250
Total	$ 758,085

Long-Term Debt - Debt (Details)

Long-Term Debt - Debt (Details)	Sep. 27, 2019USD ($)$ / shares	Sep. 30, 2019USD ($)	Jun. 30, 2019
Long-term debt
Initial cap price per share | $ / shares	$ 19.46
Debt fees	$ 7,100,000
Loss on extinguishment of debt		$ (2,145,000)
Convertible Senior Notes Due 2026
Long-term debt
Aggregate principal amount	$ 86,250,000
Interest rate (as a percent)		4.50%	4.50%
Initial conversion rate	65.4022
Initial conversion price | $ / shares	$ 15.29
Redemption price in principal amount	100.00%
Redemption price in principal amount, minimum percentage	25
Proceeds, net	$ 77,000,000
Term Loan A due 2020
Long-term debt
Interest rate (as a percent)		7.04%
Loss on extinguishment of debt		$ (2,100,000)

Legal, Regulatory Matters and_2

Legal, Regulatory Matters and Contingencies (Details)

May 10, 2019companyemployee

Jan. 22, 2018itemproduct

Oct. 31, 2019item

Aug. 31, 2019USD ($)

Nov. 30, 2016item

Sep. 30, 2019USD ($)Distributorlawsuittranchestateproduct

Dec. 31, 2016customer

May 22, 2019USD ($)

May 05, 2019product

Jan. 16, 2019product

Aug. 03, 2018product

Jun. 18, 2018product

Jun. 07, 2018product

Oct. 31, 2017product

Oct. 06, 2017product

Legal, Regulatory Matters and Contingencies

Estimate of possible loss | $

$ 9,400,000

Damages sought, value | $

$ 8,100,000

$ 8,100,000

Number of Tranches | tranche

3

Litigation Settlement, Amount Awarded to Other Party | $

$ 300,000

State Attorneys General Inquiry into The Generic Pharmaceutical Industry

Legal, Regulatory Matters and Contingencies

Number of drugs | product

13

Number of officers | employee

1

Number of manufacturers and distributors | company

33

State Attorneys General Inquiry into The Generic Pharmaceutical Industry | Doxycycline Monohydrate

Legal, Regulatory Matters and Contingencies

Number of drugs | product

1

Government Pricing

Legal, Regulatory Matters and Contingencies

Compliance reviews, number of customers | customer

1

Estimate of possible loss | $

$ 9,400,000

Private Antitrust and Consumer Protection Litigation

Legal, Regulatory Matters and Contingencies

Number of drugs | product

18

40

30

16

15

14

6

Number of manufacturers and distributors | Distributor

30

Number of States | state

48

Opt-out purchasers, number | item

3

Private Antitrust and Consumer Protection Litigation | Minimum

Legal, Regulatory Matters and Contingencies

Number of drugs | product

30

Number of lawsuits | lawsuit

100

Shareholder Litigation

Legal, Regulatory Matters and Contingencies

Number of officers | item

2

2

Commitments - Leases (Details)

Commitments - Leases (Details) $ in Thousands	Sep. 30, 2019USD ($)
Loss Contingencies [Line Items]
Right-of-use asset	$ 6,410
Right-of-use liability	7,558
Right-of-current liability	1,932
Right-of- non current liability	5,626
ASU 2016-02
Loss Contingencies [Line Items]
Right-of-use asset	$ 1,200

Commitments - Components of lea

Commitments - Components of lease cost (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Commitments
Operating lease cost	$ 481
Variable lease cost	28
Short-term lease cost	156
Lease, Cost, Total	$ 665

Commitments - Supplemental cash

Commitments - Supplemental cash flow information and non-cash activity (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases.	$ 481
ROU assets obtained in exchange for new operating lease liabilities	$ 0

Commitments - Weighted-average

Commitments - Weighted-average remaining lease term (Details)	Sep. 30, 2019
Weighted-average remaining lease term
Weighted-average remaining lease term	9 years
Weighted-average discount rate	7.50%

Commitments - Maturities of lea

Commitments - Maturities of lease liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Maturities of lease liabilities
Remainder of 2020	$ 1,460
2021	1,487
2022	1,169
2023	1,169
2024	1,169
Thereafter	3,929
Total lease payments	10,383
Less: Imputed interest	2,825
Present value of lease liabilities	$ 7,558

Commitments - Future minimum le

Commitments - Future minimum lease payments under non-cancelable operating leases (Details) $ in Thousands	Jun. 30, 2019USD ($)
Future minimum lease payments
2020	$ 1,898
2021	1,450
2022	1,123
2023	1,123
2024	1,123
Thereafter	3,839
Total	$ 10,556

Commitments - Other Commitment

Commitments - Other Commitment (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Mar. 31, 2017USD ($)itememployee
Commitments
Proceeds from sale of outstanding loan		$ 5,600
Revolving loans
Commitments
Amount of potential loans offered			$ 15,000
Expiration period			7 years
Interest rate (as a percent)			2.00%
Members in the board of the entity | item			5
Lannett employees as members of the board of the entity | employee			1
Percentage of outstanding loan	50.00%
Proceeds from sale of outstanding loan	$ 5,600
Current amount due from outstanding loan	6,100
Revolving loans | If loan balance is equal to or greater than $7.5 million
Commitments
Minimum amount to be considered for conversion of loan to ownership interest	$ 7,500
Ownership interest for conversion (in percentage)			50.00%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Foreign Currency Translation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Accumulated Other Comprehensive Loss
Beginning Balance	$ (615)	$ (515)
Net gain (loss) gain on foreign currency translation (net of tax of $0 and $0)	(46)	6
Other comprehensive income (loss), net of tax	(46)	6
Ending Balance	(661)	(509)
Total Accumulated Other Comprehensive Loss	(661)	(509)	$ (615)
Net gain on foreign currency translation, tax	0	0
Reclassifications to net income, tax	$ 0	$ 0

Loss Per Common Share (Details)

Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net loss		$ (12,157)	$ (287,528)
Adjusted "if-converted" net loss		$ (12,157)	$ (287,528)
Denominator:
Basic weighted average common shares outstanding		38,309,267	37,586,327
Diluted weighted average common shares outstanding	[1]	38,309,267	37,586,327
Loss per common share:
Basic (in dollars per share)		$ (0.32)	$ (7.65)
Diluted (in dollars per share)	[1]	$ (0.32)	$ (7.65)
Anti-dilutive shares excluded in the computation of diluted earnings per share		2,900,000	4,600,000
[1]	See Note 14 “Loss Per Common Share” for details on calculation.

Share-based Compensation - Empl

Share-based Compensation - Employee Compensation Plans (Details) shares in Millions, $ in Millions	3 Months Ended
	Sep. 30, 2019USD ($)ShareBasedCompensationPlanshares
Stock-based Compensation
Number of share-based employee compensation plans | ShareBasedCompensationPlan	2
Aggregate number of shares authorized for issuance	6.5
Shares for future issuances	1.2
Other disclosures
Share-based compensation awards vesting extended term period	4 years
Maximum
Other disclosures
Share-based compensation awards vesting period	3 years
Share-based compensation awards maximum contractual term	10 years
Restricted stock
Other disclosures
Total unrecognized compensation cost related to non-vested share-based compensation awards granted under the Plans | $	$ 15.1
Weighted average period during which the cost is expected to be recognized	2 years 7 months 6 days

Share-based Compensation - Opti

Share-based Compensation - Options Valuation (Details) - Stock options - $ / shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Assumptions used to estimate fair values
Risk-free interest rate (as a percent)	1.90%	2.90%
Expected volatility (as a percent)	73.70%	58.40%
Forfeiture rate (as a percent)	6.50%	6.50%
Expected term (in years)	5 years 1 month 6 days	5 years 3 months 18 days
Weighted average fair value (in dollars per share)	$ 4.04	$ 6.52

Share-based Compensation - Op_2

Share-based Compensation - Options Rollforward (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Awards
Outstanding at the beginning of the period (in shares)	572
Granted (in shares)	522
Exercised (in shares)	(9)
Forfeited, expired or repurchased (in shares)	(9)
Outstanding at the end of the period (in shares)	1,076	572
Vested and expected to vest, Awards (in shares)	1,073
Exercisable at the end of the period (in shares)	569
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 17.56
Granted (in dollars per share)	6.57
Exercised (in dollars per share)	9.76
Forfeited, expired or repurchased (in dollars per share)	27.63
Outstanding at the end of the period (in dollars per share)	12.21	$ 17.56
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per share)	12.20
Exercisable at the end of the period (in dollars per share)	$ 16.18
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 273
Exercised (in dollars)	35
Outstanding at the end of the period (in dollars)	3,488	$ 273
Vested and expected to vest, Aggregate Intrinsic Value	3,488
Exercisable at the end of the period (in dollars)	$ 1,425
Weighted Average Remaining Contractual Life (yrs.)
Outstanding at the end of the period (in years)	7 years 2 months 12 days	5 years
Vested and expected to vest, Weighted Average Remaining Contractual Life	7 years 2 months 12 days
Exercisable at the end of the period (in years)	5 years 1 month 6 days

Share-based Compensation - Rest

Share-based Compensation - Restricted Stock (Details) - Restricted stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Stock-based Compensation
Annual forfeiture rate used to calculate compensation expense (as a percent)	6.50%	6.50%
Awards
Non-vested at the beginning of the period (in shares)	1,288
Granted (in shares)	936
Vested (in shares)	(575)
Forfeited (in shares)	(29)
Non-vested at the end of the period (in shares)	1,620
Weighted Average Grant-date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 11.63
Granted (in dollars per share)	6.44
Vested (in dollars per share)	10.82
Forfeited (in dollars per share)	14.09
Non-vested at the end of the period (in dollars per share)	$ 8.88
Aggregate Intrinsic Value
Vested	$ 4,634

Share-based Compensation - Perf

Share-based Compensation - Performance-Based Shares (Details) - Performance-Based Shares $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Performance-Based Shares
Share-based compensation awards vesting period	3 years
Awards
Non-vested at the beginning of the period (in shares) | shares	72
Granted (in shares) | shares	178
Vested (in shares) | shares	(46)
Non-vested at the end of the period (in shares) | shares	204
Weighted Average Grant-date Fair Value
Non-vested at the beginning of the period (in dollars per share) | $ / shares	$ 19.92
Granted (in dollars per share) | $ / shares	10.71
Vested (in dollars per share) | $ / shares	15.08
Non-vested at the end of the period (in dollars per share) | $ / shares	$ 12.99
Aggregate Intrinsic Value
Vested | $	$ 477

Share-based Compensation - Em_2

Share-based Compensation - Employee Stock Purchase Plan (Details) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Apr. 01, 2003
Stock-based Compensation
Shares authorized for issuance (in shares)	6,500
Employee Stock Purchase Plan
Stock-based Compensation
Purchase price of stock as percent of market fair value (in percent)	85.00%
Compensation authorized by the employee to be withheld for stock purchase (in percent)	10.00%
Shares authorized for issuance (in shares)			1,100
Shares issued (in shares)	29	50
Cumulative shares issued (in shares)	821

Share-based Compensation - Cost

Share-based Compensation - Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based compensation costs
Share based compensation	$ 4,459	$ 3,035
Tax benefit at statutory rate	1,003	683
Selling, general and administrative
Share-based compensation costs
Share based compensation	3,635	2,213
Research and development
Share-based compensation costs
Share based compensation	224	201
Cost of sales
Share-based compensation costs
Share based compensation	$ 600	$ 621

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Employee Benefit Plan
Company matching contributions equal to each employee's contribution (as a percent)	50.00%
Maximum contribution by the company as a percentage of employee's compensation for the plan year	4.00%
Contributions to the plan	$ 0.6	$ 0.6

Income Taxes - Federal State an

Income Taxes - Federal State and Local Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Reconciliation of the company's federal statutory tax rate to its effective rate
Income tax expense (benefit)	$ 1,787	$ (75,600)
Unrecognized Tax Benefits	2,400		$ 2,200
Unrecognized tax benefits that if recognized, would impact the tax expense and effective tax rate	2,200		2,100
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 0		$ 0
Effective income tax rate (as a percent)	(17.20%)	20.80%

Related Party Transactions (Det

Related Party Transactions (Details) - Board Member - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Auburn
Related Party Transactions
Sales to related party	$ 0.7	$ 0.5
Accounts receivable related party	0.6		$ 1.2
KeySource
Related Party Transactions
Sales to related party	0.5	$ 0.7
Accounts receivable related party	$ 0.6		$ 0.7

Assets Held for Sale - Summary

Assets Held for Sale - Summary of Financial Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Assets Held for Sale
Proceeds from Divestiture of Businesses	$ 2,000
Disposal group held for sale
Assets Held for Sale
Impairment of long-lived assets		$ 29,900
Proceeds from Divestiture of Businesses	4,600
Net sales	1,067	1,488
Pretax loss attributable to Cody API business	(4,417)	$ (35,021)
Impairment of the ROU lease asset	$ 1,200