Sector News

This is the fastest growing company in the U.S.

August 20, 2015
Life sciences
Meet Lannett, the 73-year-old generic drugmaker.
 
The top company on this year’s Fastest Growing Companies list rocketed up the charts from No. 29 last year — and you may not even know its name. It isn’t a sexy Silicon Valley startup or a sharing economy starlet. Quite the opposite: it’s a 73-year-old drugmaker based in Philadelphia.
 
Lannett Company  LCI -0.90%  develops, manufactures, and distributes generic drugs for a wide range of diseases, from glaucoma to migraines to pain management. The company notched nine consecutive quarters of record net sales and a 3-year annual growth rate for earnings per share of 314% — making it the No. 1 fastest growing company.
 
The drugmaker is one of nine pharmaceutical companies to make Fortune’s list this year, including two in the top 10. Gilead Sciences  GILD -1.59%  holds the No. 9 spot, thanks to impressive sales of its high-cost hepatitis C treatments, Harvoni and Sovaldi.
 
Lannett’s outstanding growth is a credit to a confluence of factors: rising health care spending, an aging population, and growing prices for generic drugs.
 
According to analyst Elliot Wilbur of Needham & Co., “the generics industry continues to enjoy a period of unprecedented pricing prosperity,” which he wrote in a November note to clients. “Nowhere do we see that more evident than in Lannett’s financials, which continue to benefit from major pricing leverage on key limited competition generics.”
 
That’s especially true for Lannett’s cardiovascular and migraine offerings, for which prices were up 150% and 124%, respectively, last year.
 
Such strong pricing pressure has raised eyebrows among regulators, and Lannett and other generic drugmakers have come under investigation by the Securities and Exchange Commission, which is exploring possible violations of the Sherman Act, an anti-monopoly statute that prohibits activities that restrict competition. The company says “it has acted in accordance with all applicable rules and regulations.”
 
Lannett is one of the smaller players within the generic drug market — many of its competitors are bulking up in an acquisitions race. For comparison, Lannett brought in revenues of $274 million in 2014. Two generics powerhouses, Teva Pharmaceutical Industries and Mylan, earned $20.3 billion and $7.7 billion, respectively, over the same time period. That isn’t even taking into account Teva’s recent purchase of Allergan’s generic drug unit last month for about $40.5 billion.
 
Lannett has been making its own moves, as well. It acquired privately-held Silarx Pharmaceuticals earlier this year and is interested in other opportunities that could expand its global reach. It also has a number of new generic drug approvals in the pipeline, including 21 Abbreviated New Drug Applications and another 43 drugs in various stages of development — all of which could help keep growth going.
 
By Laura Lorenzetti
 
Source: Fortune

comments closed

Related News

November 28, 2021

Founder-led biotech is making space for ideas—and diverse leaders—where it didn’t exist before

Life sciences

Decades ago, the founder-led biotech was rare and considered the tougher path to follow. Now there is a trend of founder-led biotechs that have risen in prominence in recent years, going from startup to well known with lightning speed. Scientists-turned C-suite occupants know their technology inside out. They’ve got credibility both at the bench working with their research teams and in the boardrooms selling their future products.

November 28, 2021

Pfizer to become $100B behemoth next year thanks to COVID-19 drug and vaccine: analyst

Life sciences

Pfizer’s revenue could reach $101.3 billion in 2022, with major contributions coming from the company’s BioNTech-partnered COVID vaccine and an antiviral therapeutic that has shown stellar clinical data, SVB Leerink analyst Geoffrey Porges projected in a Monday note to clients.

November 28, 2021

GlaxoSmithKline takes aim at sick pay access inequities with microgrant program and new campaign

Life sciences

In a survey commissioned by GlaxoSmithKline’s consumer health division of 2,000 working people in the U.S., almost 70% admitted to clocking in while sick, often because they couldn’t afford to lose a day’s pay. Black and Latina women were 10% more likely than white women to shun taking sick time for fear of fallout from their boss, according to the company’s 2021 Temperature Check Report.

Send this to a friend