With three facilities in Philadelphia, PA, Lannett Company, Inc. manufactures and distributes high quality affordable generic medications that are the therapeutic equivalent of the brand-name pharmaceuticals. Our portfolio consists of numerous products across a wide range of therapeutic areas. We believe that our ability to select viable products for development, efficiently develop such products, including obtaining any applicable regulatory approvals, vertically integrate ourselves into certain specialty markets and achieve economies in production are all critical for our success in the generic pharmaceutical industry in which we operate.

Having cultivated strong and dependable customer relationships by maintaining adequate inventory levels and demonstrating a responsive order filling system, we take pride in our ability to satisfy our customer’s needs. Our dedicated employees strive to position Lannett as an industry leader that is focused on quality and integrity, as well as giving back to the community we serve. Lannett has a history of supporting schools, hospitals, veterans and their families, institutions, rehabilitation centers, cancer research, as well as the local fire and police departments.

Having cultivated strong and dependable customer relationships by maintaining adequate inventory levels and demonstrating a responsive order filling system, we take pride in our ability to satisfy our customer’s needs. Our dedicated employees strive to position Lannett as an industry leader that is focused on quality and integrity, as well as giving back to the community we serve. Lannett has a history of supporting schools, hospitals, veterans and their families, institutions, rehabilitation centers, cancer research, as well as the local fire and police departments.

Lannett Company was founded in 1942 and is headquartered in Philadelphia, US

Lannett Company has offices in Philadelphia, Charlotte, Carmel-by-the-Sea, Dallas and in 13 other locations

Philadelphia, US (HQ)

13200 Townsend Rd

Lannett Company's revenue was reported to be $165.7 m in Q3, 2017

USD

## Revenue (Q3, 2017) | 165.7 m |

## Gross profit (Q3, 2017) | 84.2 m |

## Gross profit margin (Q3, 2017), % | 51% |

## Net income (Q3, 2017) | (6.3 m) |

## EBIT (Q3, 2017) | 43.6 m |

## Market capitalization (21-Jul-2017) | 824.9 m |

## Cash (31-Mar-2017) | 132 m |

Lannett Company's current market capitalization is $824.9 m.

- Source: SEC Filings

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Revenue | 273.8 m | 406.8 m | 542.5 m |

## Revenue growth, % | 49% | 33% | |

## Cost of goods sold | 99.3 m | 100.5 m | 237.4 m |

## Gross profit | 174.5 m | 306.4 m | 305.1 m |

## Gross profit Margin, % | 64% | 75% | 56% |

## R&D expense | 45.1 m | ||

## General and administrative expense | 68.3 m | ||

## Operating expense total | 66.3 m | 79.9 m | 155.7 m |

## EBIT | 88.1 m | 226.5 m | 130.8 m |

## EBIT margin, % | 32% | 56% | 24% |

## Interest expense | 130 k | 207 k | 65.9 m |

## Pre tax profit | 90 m | 227.4 m | 62.2 m |

## Income tax expense | 32.9 m | 77.4 m | 17.3 m |

## Net Income | 57.2 m | 150 m | 44.9 m |

USD | Q1, 2014^{} | Q2, 2014^{} | Q3, 2015^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2016^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Revenue | 93.4 m | 114.8 m | 99.4 m | 106.4 m | 127.1 m | 163.7 m | 161.6 m | 170.9 m | 165.7 m |

## Cost of goods sold | 21.8 m | 27.6 m | 23.7 m | 28.8 m | 51.8 m | 75.3 m | 70.8 m | 75.2 m | 81.6 m |

## Gross profit | 71.6 m | 87.2 m | 75.6 m | 77.6 m | 75.3 m | 88.4 m | 90.7 m | 95.8 m | 84.2 m |

## Gross profit Margin, % | 77% | 76% | 76% | 73% | 59% | 54% | 56% | 56% | 51% |

## R&D expense | 6.4 m | 7.8 m | 9.2 m | 6.5 m | 9.1 m | 16.5 m | 12.4 m | 9.9 m | 8.3 m |

## General and administrative expense | 15.5 m | 14.7 m | 16.2 m | 21.3 m | 18.1 m | 17.6 m | |||

## Operating expense total | 6.4 m | 7.8 m | 9.2 m | 22.1 m | 23.7 m | 32.7 m | 33.6 m | 28 m | 26 m |

## EBIT | 54.7 m | 66.5 m | 54.3 m | 51.4 m | 30.3 m | 18.6 m | (20.3 m) | 34.3 m | 43.6 m |

## EBIT margin, % | 59% | 58% | 55% | 48% | 24% | 11% | (13%) | 20% | 26% |

## Interest expense | (38 k) | (73 k) | (8 k) | (60 k) | (11.8 m) | (27 m) | (23 m) | (23.3 m) | (22.4 m) |

## Pre tax profit | 54.8 m | 67.3 m | 54.2 m | 50.3 m | 19.5 m | (8.2 m) | (42.3 m) | 11.7 m | 22.3 m |

## Income tax expense | 19.8 m | 22.4 m | 18 m | 17.1 m | 6 m | (2.7 m) | (12.9 m) | 3.5 m | 7.3 m |

## Net Income | 35 m | 79.8 m | 116 m | 33.2 m | 46.7 m | 41.3 m | (29.4 m) | (21.2 m) | (6.3 m) |

- Source: SEC Filings

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Cash | 105.6 m | 200.3 m | 224.8 m |

## Accounts Receivable | 61.3 m | 91.1 m | 211.7 m |

## Inventories | 44.8 m | 46.2 m | 114.9 m |

## Current Assets | 265.5 m | 370.5 m | 612.8 m |

## PP&E | 61.7 m | 94.6 m | 216.6 m |

## Goodwill | 333.6 m | ||

## Total Assets | 342.8 m | 508.8 m | 1.8 b |

## Accounts Payable | 21 m | 19.2 m | 34.7 m |

## Total Debt | 129 k | 135 k | 178.2 m |

## Current Liabilities | 47 m | 44.1 m | 306.7 m |

## Total Liabilities | 1.2 b | ||

## Common Stock | 36 k | 37 k | 37 k |

## Additional Paid-in Capital | 216.8 m | 236.2 m | 283.3 m |

## Retained Earnings | 83.7 m | 233.6 m | 278.4 m |

## Total Equity | 294.8 m | 463.8 m | 554.5 m |

## Debt to Equity Ratio | 0 x | 0 x | 0.3 x |

## Debt to Assets Ratio | 0 x | 0 x | 0.1 x |

## Financial Leverage | 1.2 x | 1.1 x | 3.2 x |

USD | Q1, 2014^{} | Q2, 2014^{} | Q3, 2015^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2016^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Cash | 137.4 m | 170.6 m | 208.8 m | 207.8 m | 178.8 m | 225.4 m | 241.7 m | 247.3 m | 132 m |

## Accounts Receivable | 75.8 m | 90.6 m | 79.7 m | 107.2 m | 235 m | 183.6 m | 190.5 m | 223 m | 215.2 m |

## Inventories | 44.1 m | 42.6 m | 42.5 m | 45.2 m | 124 m | 116.5 m | 127.8 m | 130.2 m | 123.8 m |

## Current Assets | 287.8 m | 334 m | 367.2 m | 400.4 m | 607 m | 601.6 m | 646 m | 665.6 m | 554.7 m |

## PP&E | 69.7 m | 75.3 m | 80.3 m | 98.6 m | 198.4 m | 220.2 m | 221.3 m | 227.1 m | 232.3 m |

## Goodwill | 141 k | 240.7 m | 313.5 m | 339.6 m | 339.6 m | 339.6 m | |||

## Total Assets | 374 m | 423.7 m | 463.1 m | 543 m | 1.8 b | 1.8 b | 1.7 b | 1.8 b | 1.6 b |

## Accounts Payable | 14 m | 19 m | 17 m | 17.3 m | 33.5 m | 33 m | 44 m | 43.8 m | 48.8 m |

## Current Liabilities | 40.4 m | 43.2 m | 34.9 m | 40.3 m | 146.9 m | 176.9 m | 312.5 m | 332.7 m | 210.9 m |

## Common Stock | 36 k | 36 k | 37 k | 37 k | 37 k | 37 k | 37 k | 37 k | 37 k |

## Additional Paid-in Capital | 219.7 m | 222.1 m | 233.5 m | 242 m | 276.2 m | 279.9 m | 287.8 m | 288.9 m | 291.2 m |

## Retained Earnings | 118.6 m | 163.4 m | 199.6 m | 266.8 m | 280.3 m | 274.8 m | 248.9 m | 257.1 m | 272 m |

## Total Equity | 332.6 m | 379.6 m | 427.2 m | 501.9 m | 549.7 m | 547.5 m | 527.7 m | 536.7 m | 553.9 m |

## Financial Leverage | 1.1 x | 1.1 x | 1.1 x | 1.1 x | 3.2 x | 3.2 x | 3.3 x | 3.3 x | 2.9 x |

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Net Income | 57.2 m | 150 m | 44.9 m |

## Depreciation and Amortization | 6 m | 5.6 m | 18.6 m |

## Accounts Receivable | (35 m) | (25 m) | 15.1 m |

## Inventories | (12 m) | 1.4 m | 15.3 m |

## Accounts Payable | (1.7 m) | (2.5 m) | (3.7 m) |

## Cash From Operating Activities | 45.1 m | 128.5 m | 135.3 m |

## Purchases of PP&E | (107.4 m) | (95.7 m) | (81.1 m) |

## Cash From Investing Activities | (56.4 m) | (45.8 m) | (959.1 m) |

## Long-term Borrowings | (5.4 m) | (129 k) | (295 m) |

## Cash From Financing Activities | 74.2 m | 12.3 m | 848.2 m |

## Interest Paid | 130 k | 206 k | 52.9 m |

## Income Taxes Paid | 34.3 m | 75.6 m | 35.1 m |

USD | Q1, 2014^{} | Q2, 2014^{} | Q3, 2015^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2016^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Net Income | 35 m | 79.8 m | 116 m | 33.2 m | 46.7 m | 41.3 m | (29.4 m) | (21.2 m) | (6.3 m) |

## Depreciation and Amortization | 1.3 m | 2.6 m | 4 m | 1.9 m | 8.1 m | 20.1 m | 14.3 m | 28 m | 41.6 m |

## Accounts Receivable | (14.5 m) | (29.3 m) | (18.4 m) | (16.1 m) | 5.3 m | 50.9 m | 15.2 m | (17.2 m) | (9.5 m) |

## Inventories | 774 k | 2.2 m | 2.4 m | 960 k | 6 m | 13.3 m | (12.8 m) | (15.3 m) | (8.9 m) |

## Accounts Payable | (7 m) | (1.9 m) | (4 m) | (1.9 m) | (4.9 m) | (5.4 m) | 9.3 m | 9.1 m | 11.6 m |

## Cash From Operating Activities | 14.4 m | 52.6 m | 89.7 m | 15.9 m | 61.6 m | 123.2 m | 36.4 m | 67.3 m | 120.5 m |

## Purchases of PP&E | (16.9 m) | (43.8 m) | (73.3 m) | (28 m) | (44.5 m) | (64.2 m) | (24.4 m) | (54.2 m) | (101.1 m) |

## Cash From Investing Activities | 16.2 m | 10.6 m | 1.9 m | (8.4 m) | (941.1 m) | (945.9 m) | (6.4 m) | (17.4 m) | (38 m) |

## Long-term Borrowings | (32 k) | (64 k) | (96 k) | (33 k) | (22.8 m) | (34.2 m) | (13.3 m) | (26.6 m) | |

## Cash From Financing Activities | 1.2 m | 2.1 m | 11.9 m | 1.2 m | 857.9 m | 847.8 m | (13.1 m) | (27.4 m) | (175.3 m) |

## Interest Paid | 25 k | 111 k | 123 k | 11 k | 5.6 m | 20.4 m | 17.4 m | 35 m | 51.4 m |

## Income Taxes Paid | 11.8 m | 40.8 m | 60.8 m | 22.9 m | 35 m | 35.1 m | 12.8 m | 13.6 m |

USD | Y, 2017 |
---|---|

## Revenue/Employee | 144.2 k |

## Financial Leverage | 2.9 x |