Lannett (AMEX:LCI) traded lower Monday despite reporting stronger-than-expected fourth- quarter earnings, posting a 5% drop in revenue.
Revenue for the Philadelphia-based company was $33.76 million, down from $35.45 million a year ago, and narrowly beating the Street’s view of $32 million.
Lannett CEO Arthur Bedrosian said strong sales in its pain management drugs in the latter part of the year helped drive sales higher.
The generic drug maker posted net income of $2.82 million, or 11 cents a share, compared with $2.42 million, or 10 cents a share, in the same quarter last year.
The results trumped average analyst estimates of 8 cents, according to a Thomson Reuters poll.
Competitive pricing for certain products and the Food and Drug Administration’s order to cease manufacturing of Morphine Sulfate negatively impacted full-year earnings, according to Bedrosian.
But the company still posted a full-year profit of $7.8 million, up slightly from $6.5 million in the earlier-year period.
The company said it is “optimistic” about receiving FDA approval in the future for a new application of Morphine Sulfate and expects to re-launch the drug early next year.