Lannett Company (NYSE:LCI) stock was falling hard Monday on an update concerning one of its partnerships.
According to Lannett Company, its partnership with Jerome Stevens Pharmaceuticals is set to expire on March 23, 2019. The company notes that this partnership is not being renewed by the company.
Lannett Company acts as the distributor for three products from Jerome Stevens Pharmaceuticals. These are its Butalbital, Aspirin, Caffeine with Codeine Phosphate Capsules USP, Digoxin Tablets USP and Levothyroxine Sodium Tablets USP.
Lannett Company notes that these items are all “valuable assets” to it. As such, it says that the end of its partnership with Jerome Stevens Pharmaceuticals will significantly affect its earnings in fiscal 2019.
“The Steinlauf family advised us this past Friday evening that they will not renew our agreement to distribute three JSP products,” Tim Crew, CEO of Lannett Company, said in a statement. “”While we are disappointed, and intend to redouble our continuing efforts to explore options for addressing our capital structure, we have been preparing for this contingency, knowing that this outcome was a possibility.”
Lannett Company also provided an update to its outlook for fiscal 2018 in its press release. The company is expecting earnings per share between $3.08 and $3.10 on revenue of roughly $685 million. This is bad news for LCI stock as Wall Street is looking for earnings per share of $3.12 on revenue of $687.18 million for fiscal 2018.
LCI stock was down 58% as of Monday morning and is down 42% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
