Sometimes there’s no substitute for experience. Lannett, one of the oldest generic drugmakers in the U.S., has bucked recent trends and continues to grow while competitors struggle against the economy and compliance.
Lannett grew its net sales in the third quarter of fiscal 2009 73 percent to almost $30 million, nearly tripling its profits to $11.6 million for the same period from the prior year. In addition, Lannett is expanding its operations, but doing so within the confines of the City of Philadelphia, which it has called home since its founding in 1942, while other pharmaceutical institutions have established operations in the suburbs.
“Weve had a lot of help from the City, being cooperative with mortgages, to keep us in the City and help grow the tech side of the business,” says CEO Arthur Bedrosian, a 41-year veteran of the generics market.
Lannett’s recent growth can be attributed to Digoxin, a heart medication. As a result of other companies manufacturing gaffes (Detroit and NJ generics makers were nabbed for double-compressing tablets), Lannett gained 61 percent of the market share and soon will control 85 percent of the Digoxin market.
“Customers like the fact were responsible and reliable and we dont have recalls,” says Bedrosian. “Our staff does a good job of keeping us compliant.”
To increase its batch sizes, Lannett needs a bigger building to install larger equipment and bigger blenders, so it will move some of its manufacturing operations into a new, 28,000-square-foot facility about three miles from its existing two buildings in Northeast Philadelphia. The company has added about 20 employees since December and expects to add at least 10 more to its current staff of 219 when Lannett moves into its new building by the end of the year.
Source: Arthur Bedrosian, Lannett
Writer: Joe Petrucci