LCI - Lannett slides 28% after pricing pressure hits Q2 sales and 2022 outlook

Lannett (LCI -27.5%) stock plummeted Feb. 4, after its Q2 results failed to beat analysts' estimates and a revised fiscal 2022 outlook. Q2 net sales declined to $86.5M, compared to $133.9M in Q2 fiscal 2021. "For the quarter, ongoing and increasing competitive pricing pressure across our product offering negatively impacted net sales and gross margin," said Lannett CEO Tim Crew. "While we anticipate this pricing environment to persist over the near term, we continue to execute on our core strategies to build our product pipeline, advance our durable insulin and respiratory assets and reduce costs throughout the organization," added Crew. Q2 adjusted gross profit was $9.7M, or 11% of net sales, compared with $31.1M, or 23% of net sales in prior year period. Q2 adjusted net loss was $15.9M, versus adjusted net income of $3.2M in Q2 fiscal 2021. Negative Adjusted EBITDA was $1M, compared to adjusted EBITDA of $24M in Q2 fiscal 2021.

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Lannett slides 28% after pricing pressure hits Q2 sales and 2022 outlook