Lannett Company, Inc. (NYSE:LCI) Q1 2020 Earnings Conference Call Transcript

Nov 06, 2019 • 04:30 pm ET

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Lannett Company, Inc. (NYSE:LCI) Q1 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hello, and welcome to this afternoon's, Lanett Conference Call. My name is Sheryl, and I will be your operator, for today's call. [Operator Instructions].

I will, now turn the call over to Robert Jaffe, Investor Relations for Lannett Company. Sir you may begin.

Executive
Robert Jaffe

Thanks Sheryl. Good afternoon everyone, and thank you, for joining us today to discuss Lannett Company's Fiscal 2020 First Quarter Financial Results. On the call today are, Tim Crew, Chief Executive Officer; and John Kozlowski, the company's Chief Financial Officer. This call is being broadcast live at www.lannett.com and a playback will be available for at least 3 months on Lannett's website. I'd like to make the cautionary statement and remind everyone that all of the information discussed on today's call is covered under the safe harbor provisions of the Litigation Reform Act. The company's discussion will include forward-looking information reflecting management's current forecast of certain aspects of the company's future and actual results could differ materially from those stated or implied. In addition during the course of this call we refer to non-GAAP financial measures that are not prepared in accordance with the U.S. generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.

Investors are encouraged to review Lannett's press release announcing its fiscal 2020 first quarter financial results for the company's reasons for including non-GAAP financial measures in its earnings announcement. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is also contained in the company's earnings press release issued earlier today. Please note that additional information regarding the company's historical debt repayments can be found on the company's website in the Investor Relations section as part of today's press release. This afternoon Tim will provide brief remarks on the company's financial results as well as comments on recent developments and associated initiatives. Then John will discuss the financial results in more detail including the company's fiscal 2020 guidance. We will then open the call for questions.

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

Executive
Timothy C. Crew

Thanks Robert and good afternoon everyone. This first quarter of our fiscal year was an important one on many fronts. Beyond achieving our near-term financial objectives and demonstrating year-over-year growth on an ex legal basis we also significantly improved our capital structure and added new products to both our in-line and future pipeline that could drive significant future growth. So let's review those accomplishments. On the financial front we are pleased to report a solid performance for the first quarter. Our top line and profitability was a bit better than expected largely due to strong sales of a few key products including fluphenazine and posaconazole. As a reminder we signed an agreement to be the exclusive U.S. commercialization partner for posaconazole delayed-release tablets which is the generic version of Noxafil. The posaconazole market had IMS sales of about $330 million for the 12 months ended September 2019. This first-to-market generic is currently the