LCI - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Lannett Company Fiscal 2019 Fourth Quarter Financial Results Conference Call.

My name is Adrianne, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] Please note this conference is being recorded.

the Company. to turn Relations Jaffe, now Lannett for will call Robert over Investor I ahead. go Please

Robert Jaffe

Thanks, Adrianne. XXXX everyone to results. Good afternoon discuss us for Lannett today joining companies’ fiscal fourth financial and quarter thank you

A This the live retirement Galvan, Company's will who X at of Marty playback will the On Executive the at company’s John month. Officer the today end Crew, Chief website. are for Chief call call available CFO broadcast Officer; at and on become months Financial www.lannett.com. is Kozlowski being Tim upon be this Marty’s least Lannett's

I implied. cautionary materially on reflecting The will include those that today's of everyone current differ to the the Safe would discussed covered company's all discussion company's forecasts and future is of like Act. the results under make statement and actual management's could certain Reform or information, call information forward-looking aspects Harbor the of of the from provisions remind Litigation stated

most Company's results in today. comparable its earnings contained financial the course release measures reasons GAAP financial announcement. non-GAAP release we principles and In prepared non-GAAP U.S. review also for Investors accounting accepted fiscal during in press financial is are that other the refer The generally quarter by in be press accordance directly encouraged this XXXX for issued fourth different not used financial measures to financial the Lannett's measures financial may its from are addition, announcing companies. Company's non-GAAP measures with the to including non-GAAP earnings of reconciliation earlier measures of to call,

reconciliation regarding bet the Levothyroxine fourth sales Term quarter EBITDA. on on Term debt for loans A as that information adjusted fiscal also Please company’s net website a historical well included excluding as is B its of and repayments XXXX, Company's note the additional

fiscal XXXX on Marty afternoon, guidance. fiscal developments financial John XXXX recent will by company’s as the financial detail, more initiative. will and as Then associated brief in will provide results Company's followed This comments discuss Tim who the the remarks well on provide results

open will for call questions. We then the

now that With said, call Tim the Crew. turn I over will Tim? to

Timothy Crew

afternoon Thanks, everyone. And Robert. good

wish average long have like we today best much I'd this and have to career. comfortable than well-earned by thus who a longer call a in wishes to may illustrious and commentary extending will You start to Marty, get retirement to soon begin as after our review

and me. eight direction, growth role years, significant last strategic and mainstay His at has lasting. company's in been He worked The Marty and on a played and been impact our he's to here trusted the advisor will good friend company he's Lannett. a a be with those

At August time, after goes the a of candidates, internal And pleased CFO very effective thorough XXst. and to life on. Lannett’s external as next same welcome search Kozlowski John I'm

for served transition. XX he over Thus, Chief years so and Lannett Controller, joined Moreover, both a deep. is as had John and Officer. he experience company that Strategy most years, Marty our ago, Operating Officer, Vice time wide worked eight Operations as Chief President, Financial Staff and has our and anticipate Corporate with of at smooth his we recently and

On our July one further effective the entrepreneurial held Upjohn. X. was leading & The Pharmacia Rewolinski of experience, other as Directors of appointment leadership Pfizer development. pharmaceutical positions that companies, for note, several Melissa well to our such senior She has firms pharmaceutical around worked research extensive particularly smaller of strengthens as level as and with and Dr. She Board we've addition Melissa brings announced Board.

Turning to our results. financial

quarterly our XXXX, exclude our recorded when guidance. Through fourth we Levothyroxine. and the and all product sequential fiscal in increases both we For sales, XXXX full year, implied profitability our margins, quarter net gross fiscal exceeded sales

million $XXX first second, growth in to from of to respectively. from the to $XXX third, of equates approximately last rate fourth grew and million $XXX a business the sales this million first, to $XXX quarter. XX% core This million Net quarters to progression

$XXX noted, was net diluted $XX to quarter, adjusted just about total as net and for share. And the fourth equates million approximately quarter without million, our which full income $X.XX were sales first per Levothyroxine,

adjusted quarter about our sales. EBITDA any fiscal gross our XX%, of of million. despite quarter the was Our quarter highest margin in $XX fourth the for adjusted strong quarter XXXX in absence a the And was Levothyroxine fourth

advance Xth quarter without the from which didn't exhibited excluding higher solid fell growth. products holiday, in midweek. fourth than of orders quarter, benefit in expected our better expected July Our than fourth of customer portfolio in Levothyroxine quarter-over-quarter the June Even the sales

we collectively are tablets, Amphetamine that IR and ER products growth In continued IR successfully our These and -- to contribute that’s products the Dipyridamole quarter, Methylphenidate Dantrolene contribute capsules, Concerta; capsules. aspirations. generic launched to tablets, Aspirin four ER to solid

was we the total approximately to million, comprised payments. briefly voluntary sheet, by Turning outstanding $XXX our reduced have balance million of which January since of XXXX, approximately $XX debt

just notes recent a during new $XXX quarter, million Levothyroxine debt of were so $XXX made net XX cash purchased was $XXX Our in-licensing million reflects of $XXX asset. balances was outstanding our the million cash At we Term and our XXXX, A million $XX the to the respectively, above June loans million our cash million. A before Term $XX in after Term balance which June related XX, of position July, B our about but of at we payment and

our we core on strategies building business, and while XX months expanding investments, products our over have the growing R&D alliances. last to the out our pipeline strategic Turning focused new launching and

by importantly, over XX acquired we period launched. which We products and products the have successfully executed as plan most that on or in-licensed XX our evidenced over

products is pipeline, have about roughly our have which launch have products base market diversified our today. products revenue parade, we still XX these in the XXX so-called aggregate significant from the and to Sales ongoing supports relative in we which

same improve enhanced near-term time, plan the portfolio to our at opportunities. Our and numerous through returns addressing while the has been readiness portfolio of in-line supply optimization,

plan. to press We will of continue both components that

external layering to and potential internal and begun business However, products both over we term the have immediate significant that have the drive to our growth beyond. also in

that longer we have near-term. to have results, to potential may commercialization, lumpiness is our the slightly these at the and investment that some require road general, products in least to made typically cause than have In larger a

not these as meaningful disclosed and for year. the transactions addressing of products some But and we those Levothyroxine. Numbrino, agreement insulin completed and for other of and for calendar We that at end transactions previously opportunities thalidomide, have other to on publicly other announce of potentially glargine, hope the reasons, future time. such this before are also competitive some We've new the distribution supply are working we

quick effort reduction capital our a Now, couple on comments structure. turning cost our to and

on our cost related virtually First, reduction cost reductions, all completed to we plan. announced have actions previously

last comes any of that our API in pain before material operations Labs the achieved July, In of Cody the we operations program, and we business. selling business at ceasing at The element ceasing real equipment. Cody the completed management associated traction

lining was defendant Urban involves hospital. the the while that we lawsuit. in Kremers it's The single in named one Urban generally fact in and environment. Kremers is subsidiary we comment is opioid only suit. we do sold date pending And Moreover, our error on that a litigation, not very That perhaps little noting worth products, given believe our believe case of to company current a silver such I

other lawsuit. any in named not opioid are We

how appropriate and we regarding best to structure, debt. the continue the our at our we refinance plan evaluate further to Second, improve situation time, capital to

We pleased opportunities. are finance our with firm be working Credit assess leveraged with now us experience a markets to help in Suisse, extensive to

some of update on Finally, to I'd pipeline. our the an provide like products in key

track on continues and Numbrino this an Our expect later to and shortly NDA we progress the remains year launch for thereafter. at fiscal to approval FDA

given ceased manufacturing at operations We to an track have on plant are as we our also Carmel qualify Cody. alternative site

the XXXX. the complete being in letter API addressed. hope product matter Accordingly, in launch thalidomide, Regarding now is not response fiscal still to the we noted

we in in our glargine normal biosimilar completed volunteers HEC, Regarding project study. healthy dosing with PK/PD a insulin

The analysis the by we process, results in of is month. and next end expect

we the their and FDA analysis, drug. pre-IND a to of steps the will the with request the for progression meeting discuss guidance next Following

is a alliance exclusive we distributor by we Sandoz. with announced, to recently product marketed as Cediprof their and being Regarding of formed Cediprof’s approved Levothyroxine, U.S. Levothyroxine product. strategic be currently

XXXX. of product will We over the August take no Xst than later marketing

Obviously, remains in the of one widely U.S. prescribed market most Levothyroxine the the drugs it know well, and we

with believe this we So and their our relation company company. Cediprof has parent continues transaction to grow. our Meanwhile excellent potential for

commercialization announced capabilities we providing in we Today, to build USA. and an to we agreement, advisory agreement that expanded include new the the under Cediprof help our expertise relationship are the

and and is capability market in the being have firm’s expect market that capabilities. parent the injectables built, where also hormonal While of they Lannett an products, including manufacturing will development U.S. to several opportunity oncolytic have we

that of today Delayed-Release certainly but with be pharmaceutical pleased a am Sinotherapeutics company entered least, we an earlier specialty I Posaconazole XXXmg. announce not agreement into Inc. exclusive the last, have to U.S. distributor China-based very to Tablets And

A our received and and FDA few this thus believe and AB-rated be pleased we'll patients. days the the final known ago, approval from provide Posaconazole partner first both to conjunction Sinotherapeutics product. only generic for lower customers and is this We for approved in the with cost first alternative

a annual product, the expect In fiscal are IQVIATM. we in were expect now guidance. our near meaningful million to sales $XXX business. ended the begin which We shipping XX approximately June brand's product of for contributor U.S. sales be to the to For XXXX to perspective, according the the future, included months our XXXX

plan to we before press the tomorrow market issue So opens. a release

we made up, we our have we quite sum rebuilding believe, about progress solid our To positive feel prospects. business and

execute plan. pipeline, about to excited portfolio, our our and are our our our against growth We ability strategy

view and industry this in have despite that many and known our face. We the challenges we

several is optimism factors. on based Our

Generics an only the service volume, of overall First, sales. fraction lowering the industry of representing a all cost pharmaceutical significantly valuable XX% provides and pharmaceutical but pharmaceutical of by important healthcare. generic all

believe To again exaggerated. some been travails the of Twain the has did paraphrase we we news ago, Mark quarters industry's as

is a our opportunity low our very and in what third, Second, to industry we What company us our relative size have the many is, others it unique. single we today Lannett aggregate large generic space. is from digit and believe share, differentiates where rather not, represents

a do not have company mid-sized run hit to home are growth. have a meaningful we to so We so-called

USA are very partner the on so we we're and We U.S. are collaboration, here have are open disciplines, reliable in focused larger across abroad. and focused market, attractive technical to supply. on companies And smaller and multiple expertise to both an the business

associated Our of to is fragmentation it competitors, our can believe, some U.S. based as manufacturing we for that is We preferable, business respond quickly increasingly easier, they our it global arise. to us. complexity the do and makes free and that with flexibility opportunities flexibility besets footprint of customers

year fiscal a launch fiscal the look portfolio current We The of new ability We as of build. year our this that to year, that continue was we'll the demonstrated well and solid coming during our strength past to as which demonstrates will be products. growth of from and XXXX. one, our believe to continue one strong growth portfolio that portfolio durability

top line our across goal our products, way. to fiscal business base strong compounded Our some annual XXXX. the starting we of upside, new and is growth XX% goal shots achieve years, believe, next business to With significant three over we our add are of in on rates reset on with multiple well

all With the over I Marty? call that, of to turn Marty.

Marty Galvan

Tim good afternoon everyone. you, Thank and

release. measures. As the mentioned today's referring be will can press in I GAAP be to numbers to found The was non-GAAP reconciliation financial non-GAAP of earlier,

Our of net sales earnings schedule release by also medical our indication. includes a

Levothyroxine our first fourth non-GAAP fiscal quarter, the basis. compared XXXX quarter sales full on were million of net results adjusted $XXX.X for $XXX.X a for the financial With Now without million XXXX. fourth quarter with a

profit were fourth adjusted million of year XX% quarter. sales compared XX% $XX.X $X.X for net prior or expenses million. of $X.X net with sales was million million $XX.X with compared or Gross R&D adjusted the

SG&A $XX.X $XX.X was expenses Interest million. for with were quarter. with million income with $XX.X Operating $XX.X $XX.X the million. prior $XX.X million compared million compared year compared fourth million was expense

$X.XX income Income compared compared with was million the million year $X.XX share per tax share $XX.X prior with period. or diluted fiscal per XXXX expense million $X.X the quarter. $XX.X diluted in for fourth was $X.X Net million or

million in $XX was QX. And adjusted EBITDA

June million. XX, cash XXXX Turning balance sheet, to cash our $XXX equivalents totaled at and

announced purchased XX. quarter, our of of we we loans Term after $XX approximately purchase on the purchases of amount the in includes $X.X A During May million million Term A loans. million $XX.X of This late May

approximately and our million. $XXX At June debt of $XXX XXXX was cash net million was debt XX,

loan. to expect covenants up of financial to within A the date continue our maturity the We Term to be

the the turn the to now discuss XXXX for I'll call John fiscal to full guidance over year. John? company's

John Kozlowski

Marty. afternoon, Thanks, And good everyone.

a million in fiscal of excluding $XXX in XX% $XXX to expect would to XXXX sales Levothyroxine. we For full an the XXXX million adjusted which year on XX% basis, over represent year net currently the range sales sales, full increase

sales of as really the a products launched launched and Our well products guidance business approved our period. products that yet and solid but base other approved recently reflects will sales previously launch in as the growth of not be net continuation we assume of

margin than as the launch XX%. gross fiscal our products. internally on products to and mix, a percentage XX% to lower of competition approximately which lower includes products, partnered which loss product gross some sales the of XXXX, have Adjusted than number a developed of This net sales anticipated expected due slightly margin gross margin Levothyroxine, is of generally of a in

lower of expense than ranging expense has impact $XX million fiscal to in with from been the cost R&D Adjusted Adjusted million plan, million which in full $XX consistent due fiscal to completed. the of reduction million, our $XX to is XXXX R&D largely SG&A expense range SG&A year is $XX in which XXXX. which

expense interest fiscal than $XX to voluntary a primarily million is due debt substantially lower interest required our drop made recent of rates. range our to and we the in and in have to million in which Adjusted $XX the XXXX lower payments

as rate XXXX the our this range cost $XX capital year guidance EBITDA in These incorporate to XX%. and in million covenants. of $XXX million full of Marty the range effective be tax The $XXX XX% reduction efforts. adjusted range to our full financial lastly, $XX to fiscal earlier, within is in mentioned And approximately expenditures ranges in to million. the Adjusted million

cost will realized savings of in as the sold, goods well as our be expenses. reminder, operating a As

and orders the be July phasing the customer quarter of sales, in to we holiday. fiscal largely EPS XXXX related quarters, QX, Xth expect EBITDA Regarding due to adjusted than first timing net lower to of the

We compared sales anticipate be QX by to approximately QX. net to XX% lower

With expect declines over to to the product anticipated sales, margin EPS of the gross ramp we course regard partner we the slight of Again, we EBITDA products. and Over than and with the quarter-over-quarter. is expect the -- to this course mix of percentage, year, QX lower slightly remainder of year adjusted up expect QX. related impact

of expenses expect we modestly increase the to QX from gross and However, year. profit course the stable remain over through to relatively QX dollars upcoming operating

like With that questions to overview, Operator? now address may any we would you have.

Operator

you. [Operator to Instructions] comes our Thank question Gilbert And Gregg first from SunTrust.

open. Your line is

Gregg Gilbert

distribution to John, can Marty, lasts, little few. good I’m whatever’s you I about luck folks and to new XXXX? how Tim, get long deal to fiscal to margins? deal, more what degree Thanks. you. terms, guidance for in have a a bit it the next; welcome drives want I And the understand financial talk that perhaps relative sure the

Timothy Crew

general, of of to guide relationship our within the Thanks, we would the proceeds, has of forecast parity gross In results historical level ranges that Gregg. the and some portfolio. the our gross margin margins be net of the

be of fiscal product annual good should a an be of been This $XX So, launches course to million it. the over it each should attractive asset. new about year. talking We've product contributor

you're into pretty have our that not many it’s the and products backloaded, have We if a product. expect coming if things about to that we’re to portfolio the of launch we we'll the quarters, balance glad year, and some it's get around hope it shortly. technologies people into so to There's to and see agreement. technical other planned number. And we fiscal somewhat extrusion and too for months it But ahead the excited significant over see have

Gregg Gilbert

long that deal how last, agreement? And does that

Timothy Crew

to years I’ll check. more, seven It’s double or have

Gregg Gilbert

stuff than just starting can announced? sort Okay. does And that CAGR, confirm then other I number you of one the point BD confirm goal include can want XX% the that, just the any you on what external not to you And clarify is?

Timothy Crew

sales the our Levothyroxine totals basing of that our kind base We’re products, on excluding -- of which XXX…

Marty Galvan

It’s I believe, four -- XXX. a

Timothy Crew

effective last XXXX, starting year’s base for XXXX. business of XXX without is and Levothyroxine XXXX, immediately

our and We business sort parcel in also part we BD, do not of that internal in-licensed external. any other of are inorganic or products whether have plan, have that do

those So, on it it's parameters. based is

Gregg Gilbert

large. that an a addressed be lastly, there or overhang just a opioid your in about answering broad perhaps of have But structure structure Thanks. or you the Can a of talk question? of around in options, kind should little any lack And lack capital urgency you company. one of obviously there at your what Okay. considering or for the overhang is timeline you that plans, sense least belief

Timothy Crew

You’re asking part. referring to? like I missed which litigation you sorry, are I’m first Gregg the

Gregg Gilbert

at timeline? talking [audio and perhaps advisor an What's important Yes, are to options. about, I most any Thanks. look you all capital the was you’re that of to What structure for saying insight you? considering into improvements types the options disturbance]

Timothy Crew

kind that’s sense out that space of most but we’re the refinance makes those exist capital with re-extend figure the cost very, they and debts, the out in the we've options good important Well continue reasonable bonds to what the market a without are viability to and historically. options engagements. reflective pragmatically out have in us. Term was our now years. we pretty of due been coming was some closer those We A believe there take time the improving have our performance structure available is to more trading year, put over our and capital to to right for which We expand, of so our up overhang the believe about past, experts it there. thanks marketplace, at that of loan several of Gregg. that loan quite felt We been so thinking would has relative last the with it's of start levothyroxine working engaged of to been look So, it’s it get the next to the to our much Clearly, quarter many like in to the end very the term mechanic feel we to what did in par exploring which in

Gregg Gilbert

thanks Okay, gentlemen.

Operator

next your of comes Markets. Nachman question from And Capital Gary BMO

Gary Nachman

best me, John, afternoon. as to Good Hi. too. you My Marty. welcome, And well, from

XX% target, the would that dynamics are for any Levo few we first, anticipating in your significant about? of in should than that years So growth be greater And you next over with products that XXXX? major competitive any think included

Timothy Crew

Gary. Thanks

we to have a from our plan. specifically as really all I we'd to up know, businesses. that up that of offset our would erosions bottom aggregate stacked of sort by and sort got relates in changing. racked typical it It's in just the anticipate base nothing totalling forecasts growth we've launch, say You products the to the

than few larger if is for have more the We older erosion high double-digit eroded. margin and product are has competitors products particularly that

have blend lower-single-digit the change Each that we gets XX%. we We erosion our product CAGR each. percentage story, no the of and that its the with in has so risk adjusted the business own excess have us comfortable in a in it's portfolio believe forecasting, products there's of

of And period end toward Levothyroxine three-year that should into -- of come period. planning that the the

Gary Nachman

Levo, XXXX? they maybe of start And under Okay. you would be just sort And fall then that And just arrangement August into? the what on explain What what distribution, scenarios range earlier product? works? how would the potentially, than could for you margins could

Timothy Crew

earlier our in So transition as of practical think thanks. get clear, expirations matter we very in did The starts and orderly relationship this it of marching agreement. those to about given of that sort a towards, When the with asset contract expiration be as we're patients space. we've our product much as own Levothyroxine the be to year. personal and XXXX can on previously experience Want interest closer this pragmatic is some in indicated that customers

typically to everybody's customers is simply something conversations to disruptions. but haven't about do and in relative we any avoid to that we interests thoughtful So it's acknowledge that patients

what we'd a where to us for perspective we margins look From it with in are even and years, it a percentage little have prevailing given our current to the margin that than expect asset, expect lower had a future business. historically than gross perhaps it lower you we'd like for know

back comment of to gross of the happy margin dollars, So lots when it's it. to add goes we're it quite

Gary Nachman

still new I or then one. would quick Did products annually. knew you're have million have target versus you that about last new how those launches then currently, many you $XX future? you for thinking And of of either And filing per have Thanks. also be XX product generated a year? about the target in internally this partnerships Okay. that

Timothy Crew

XX from believe important, portfolio. that products build So from spoken thinking year-on-year. because development some do products Gary, about we always product we've is particular is XX external pipeline takes in internal volume our our there's and We any to gives sources and in how

So quality in shots number a we range number than goal. less do that and is to the individual have to value important have product. on any like obviously the of around enough That

certainly So don't products can while that XX any if we given the indiscriminate. we might ebb indiscriminate, but and get to for flow be we're year, plan

half and XX half us And keeps the range comes increase and so any so chances shots strongly. light, that good gives that closer up other to particular if of sort external. us goals up internal, comes That product we product

And great I that example of posaconazole is think a product. example, for

market ago product. more thought the would going as think months a We it's did fell and away. and forecasted. showed people patents to earlier But evolved signed Some we we have the be it. value We up, it than fewer good

for value market when while and showed still deal, fair up that the people on more come that we hope For down. would signed sales product but significant we first at more Methylphenidate, balance, Concerta has up

of try comfortable for always on net think new some ups and goal. to some goal annual feel that about shots with we diversity and downs, net So having million $XX

Gary Nachman

Okay. you. Great. Thank

Timothy Crew

Thanks Gary. you. Thank

Operator

from comes Raymond for question Elliot Wilbur next The James.

open. is line Your

Elliot Wilbur

much that it. Thanks. years say we've well-deserved first congratulate appreciate and knowledge Good have Marty for thank with us the his many question. shared want afternoon. you and together. worked the you Quick all But on financial that Very to over retirement wisdom

Marty Galvan

Thank Right. Elliot. you,

Elliot Wilbur

for and see last bit quite respect of to trends have that we I continue mind should absence what the given reason below the quarters in down to in number inventory couple a Levothyroxine. with my some So move of

rather insight of why than into inventory numbers trending sort a So remain bit maybe flat just of little downwards? the

John Kozlowski

John. is This Elliot. Thanks

And were is did going product QX. from that certain we market the net you've strategically for And returns inventory lower a opportunities. on on we seen for products increase where our QX have inventory it's So to to increasing product. as look what capitalize our actually Levothyroxine

So didn't significant as market. a you decrease that we we see exited

Elliot Wilbur

of as Tim, to debt for as the the assist Term guess off whole the Okay. question under maturity but Then think playing I be couple team mean maturity follow you're of kind you the you head the head or a as out years be restructuring, with mentioned here going -- well a A up hiring paid next as -- will I advisor financial next about an as leverage. numbers I year, into towards the of for guess. term of of Xx B, you the the head to into I

curious to the you've positive terms directional a Kind you've there refinance at in because more potentially lot how certainly in and secure of, of receptivity of some but commentary like maturing hearing to you're competitors maybe know of question well. from it spend or different as lot or out on what a seen of of guess, have in favorable is had movement favorable just to based of of about business terms. to obviously I it numbers, businesses issues date you a sort finding able the being ask terms discussions I who financing to very their debt trends, refinance difficult they'd debt lot other

Timothy Crew

We quarters current options. That's our refinancing more expensive than allow sooner, Well to discuss capital here performance as try notably we prohibitive degrees structure. to noted, simply our understand board go why would thanks, options. further thought exactly cost optimism of them expensive of several we've the those believe Elliot. to us some freedom If or brought be we their our on to for we the and last over the market future shouldn't sustained

work are. know of with lots we'll to those There's best what advisors them. those closely You out figure options

sense to amortization than and of so or of so what in basis. of hear, all we'll loans on B around a You a cost get the us in And everybody we Term year cost relative know work being we will. our relief for look a our fair that or kind abreast coming the always capital. a capital maturities with like practically we they flexibility they bit flexibility could months some opportunities That to address to structure. little But take amount we might the with out, need more see three at to pay of a business suggest today think, and build We closely changes. some of and do any see to daily and keep we'd those our what advisors the them,

feel what base and there's with have chance say. conversation to that have we'll in a We do for meaningful now folks us they see a to

Elliot Wilbur

to Okay. Last revenue basically question million above million Levo you of previously significantly per guided in launches, range that. from Obviously X for of the deal you, rough Tim. product expectations new today X In talking sort product. about to deal a the you announced

a have a perspective it getting efforts good is your for you terms development may to their of platform able changed little on be off? to or your scouting folks or what looking getting may relationships these what on leverage just led company to in Just calls bit the visibility, maybe have just past is deals inbound curious more more part,

Timothy Crew

Well thanks for us. the one a for question, Elliot. favorite It's

size, may to continue to sort and starting that business on gives money, layer better in generic in opportunities bit I will that some We give bit bunch opening returns. return. in articulated comments may more calling modest execute I the perhaps is we potatoes of a gives a that of just mentioned involves the time, you the of we're that which of a bit often portfolio, what singles, exactly what And a to my to think more take our our take ain't products meat a but certainty and stability

earlier we we level a If lay market. of products over success. after out did year, well really some we had $XX and doing asset. for last million And the with Levothyroxine at our we weren't as look lost begets position the course in to success We're

of everybody our not not commercial market teams very we very U.S. to those have and quality, commitment pitch scale. all that We the the to of ones our a us but our great about, table, mentality those finance commitment and public pretty only a are R&D, it's make to says space. mean We that. significant teams, whether bring them. generic partners deal a the there, to the good manufacturing, regulatory lot given they cross-functional And that we care We're about out a products,

different core So around we We have want we our looking oral think attacks term. slightly that's couple have room built swings doing the us to that we and here what last take But from take remain of hope opportunities more of several business we that believe quarters. risk coming the into And in business hear breathing that we'll near slightly less to relatively profile the do they're we'll a different be and more to still to in volatility executable a we're a to quarters. on the there. true some have little generic the that

Elliot Wilbur

All you. right. Thank

Operator

Scott Roth And comes our next Henry from Capital. question from

Scott Henry

of professional and been It’s a on good level. personal luck a Thank to really Marty, pleasure you. you afternoon. a best and

Marty Galvan

you, here, thank Same Scott. Thank you.

Scott Henry

questions I here. do have a couple of

comp. if next on trajectory it, may was quarter. of kind you but quarter recall, the And quarterly I think have tough I and last color missed I first a some First, the provide typically

Just trying how about to year guidance? get the relative an QX we of think idea full should to

John Kozlowski

on the Last some and talked same the now about versus would was QX Scott. we're bit in that thing in thanks, orders QX decline expecting seeing you and the impact positive to This year, a this we’re you’re and know We the its is that pressure. of and timing little QX negative quarter. a John be right. QX Well

like up sales, about and sales XX% ramp just the of for we but EPS decline would the XXXX remainder XXXX both a continue to in in expect quarter-over-quarter. talked We

Scott Henry

Okay.

would up in you So each see sequentially EPS quarter XXXX?

John Kozlowski

how looking that's we're Yes, at it.

Timothy Crew

And can that launches a if product a coming the of on months. here wildcard ended. bit a there's I of based bit obviously add, market -- lot in A are on develops other posaconazole how of back

other quickly but keeping on out, of space, comes time, to this occurs, there's some to that closely are product to we could a what is and any positive looking etcetera. it But upside will for as again our be eye market something lumpiness But we today, when if relative first have we'll we our launch of So obviously that how period all in in sustains need results. that particular only expectations. see how folks the does an supply who

Scott Henry

And in we guidance, because you throughout number, when model year, of how flat throughout material that your we we about when model are kind that? think expense factor out the pay a should down or you interest in the thinking about Okay. it year as is how should

Timothy Crew

slightly down relatively but year, come does the it's throughout flat. It

Scott Henry

when antipsychosis, And look in some an there guess Okay million then Anything QX, know $XX did that there you couple on variability cardiovascular I $XX of $XX that's versus the a a helpful. $XX example some have of the I buying of just more million in I at then questions was different million little categories patterns? or where million. versus of is

John Kozlowski

the talk we of buying of some think about with patterns. the a those some -- some When categories. antipsychosis, example directly direct I it affected those that's of timing the specifically of

Scott Henry

or in variability priority contract again, is and just QX. perhaps area an that Okay isn't That low that is a really now? that then right manufacturing

Timothy Crew

actually and of direction. seen the offset in just QX. in that's timing the to In increase that previous opposite just we another an No, quarter, had was the example

Scott Henry

I for taking you do All that it Thank questions. think for Okay. should right. the me. Great. Then

John Kozlowski

you. Thank

Operator

question next comes Hewitt Matt our from Craig-Hallum. And from

Your open. line is

Lucas Baranowski

here XX% Lucas of is on at Matt like This XX%. to you're gross margin Yeah. Baranowski It Craig-Hallum. to guiding looks a for Hewitt

in puts line maybe that to the us gross what are with So that roughly some needed Could walk and Thanks. margin? had hit of you modeled. through takes we

John Kozlowski

it products, Thanks, partner competition is in the look our our of some We're into fiscal reflection for showing year. have the some our When of some of a then get product own this products, is is mix. forecasting in at margins of key but also launches as XXXX, there John. Lucas, some for we which half also pressure we projections second we

know, slightly you our throughout lower margins, mentioned, year. we we're as the increase profit should forecasting But dollars

Lucas Baranowski

summer, Or front? that's changed XX% still thinking? layering you mean, is kind has over in of on what new And that Okay, you're about believe some of helpful. conferences had I something that margin. talked kind at the gross at products I like

Timothy Crew

It's Tim Lucas. Thanks, here.

partnered think is all the I probably products. the XX-ish blend of right for

some higher, lower. are are Some

I think that's close. in general

currently pipeline that other couple couple portfolio. Now But than again, a could the it posaconazole higher products bit. the general, as a that which our up have of bit of margin products a about think the swing a in pulled good on bit in in lower I is quarters or just would company's we by average, a

Lucas Baranowski

then call. of on from have was question And factored that guidance that agreement a announced provided? how you into makes one final The of you sense. here. mean, I contribution that lot just Sinotherapeutics that the this Okay, much

Timothy Crew

on it's our basis. Lucas It's million been So, again, posaconazole those. a one earlier an product annual of launches And We have a at bit think Tim new and come adding here. $XX-ish would loaded more in could or bit not a there's young original valuable. higher of rate is our we as year products would've than valuable But or had the bunch that slip forecasts. back become about and be

this we're changing bit get that really how product. million. to of for a It's particular the be we So it $XX happy We're provided. ahead our at this to not we've point guidance

Although ago valuable noted products, and not or good weeks but would Aspirin/Dipyridamole once hoped few you launched as months as earlier, I just they both methylphenidate a be. we as on products

basket enough we this and enough on shots $XX interesting that about really it's to So products comfortable goal the of million. balance, on feel

we a can are dollars of year's get to higher, say closer the million want product extra to the end going to be to don't $XX bit million We the add experience. because this to

Lucas Baranowski

Okay. Thank you all had. very That's I much.

Operator

back I'll turn now the this remarks. concludes for call over the And final session. question-and-answer

Timothy Crew

Tim to our customers out it's so important our again. to employees, partners I'll the with close success. shout-out all right, and All of

scheduled to progress evening. just our good look Have sharing described, regularly We have a next we forward call. at our

Operator

Thank you, ladies and gentlemen. This for concludes participating. today's Thank conference call. you

disconnect. You now may

Lannett (LCINQ) 27 Aug 192019 Q4 Earnings call transcript