Acquisitions (Tables)

9 Months Ended

Mar. 31, 2016

Summary of fair value of total consideration transferred

(In thousands)
Cash purchase price paid to KUPI shareholders	$	1,030,000
Estimated working capital adjustment	(46,202		)
Certain amounts reimbursable by UCB	(37,340		)

Total cash consideration transferred to KUPI shareholders	946,458
Unsecured 12.0% Senior Notes issued to UCB	200,000
Acquisition-related contingent consideration	35,000
Warrant issued to UCB	29,920

Total consideration to KUPI shareholders	$	1,211,378

Schedule of preliminary purchase price allocated to assets acquired and liabilities assumed

(In thousands)	Preliminary Purchase Price Allocation as of December 31, 2015 (a)			Measurement Period Adjustments (b)			Preliminary Purchase Price Allocation as of March 31, 2016
Cash and cash equivalents	$	16,877		$	—		$	16,877
Accounts receivable, net of revenue-related reserves	149,209			(6,190		)	143,019
Inventories	83,815			(215		)	83,600
Other current assets	12,873			(1,468		)	11,405
Property, plant and equipment	97,418			20,169			117,587
Product rights	409,000			21,000			430,000
Trade name	2,920			—			2,920
Other intangible assets	20,000			(1,000		)	19,000
In-process research and development	232,000			(103,000		)	129,000
Goodwill	240,575			72,735			313,310
Deferred tax assets	4,956			—			4,956
Other assets	4,859			—			4,859

Total assets acquired	1,274,502			2,031			1,276,533

Accounts payable	(19,249		)	—			(19,249		)
Accrued expenses	(4,161		)	(1,918		)	(6,079		)
Accrued payroll and payroll-related expenses	(20,731		)	(309		)	(21,040		)
Rebates payable	(9,816		)	—			(9,816		)
Royalties payable	(3,798		)	196			(3,602		)
Other long-term liabilities	(5,369		)	—			(5,369		)

Total net assets acquired	$	1,211,378		—			$	1,211,378

(a)

As originally reported in the Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2015.

(b)

The measurement period adjustments are for 1) certain working capital adjustments and 2) updated valuations on inventories, property, plant and equipment and intangible assets. These adjustments did not have a significant impact on the Company’s previously reported consolidated financial statements.

Schedule of revenue, net income and earnings per common share included in Company's Condensed Consolidated Statements of Operations

	For the Three Months Ended March 31,		For the Nine Months Ended March 31,
(In thousands, except per share data)	2016		2016
Revenues	$	69,933	$	96,064
Net income (loss) attributable to Lannett Company, Inc.	2,260		(4,047		)
Earnings (loss) per common share attributable to Lannett Company, Inc.:
Basic	$	0.06	$	(0.11	)
Diluted	$	0.06	$	(0.11	)

Schedule of unaudited pro forma information

	For the Three Months Ended March 31,				For the Nine Months Ended March 31,
(In thousands, except per share data)	2016		2015		2016		2015
Revenues	$	163,712	$	193,612	$	520,867	$	616,083
Net income attributable to Lannett Company, Inc.	896		29,889		55,596		89,527
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	0.02	$	0.83	$	1.53	$	2.50
Diluted	$	0.02	$	0.80	$	1.49	$	2.41

Silarx

Acquisitions

Schedule of preliminary purchase price allocated to assets acquired and liabilities assumed

(In thousands)
Cash	$	664
Accounts receivable, net of revenue-related reserves	4,396
Inventories	2,705
Other current assets	467
Property, plant and equipment	7,247
Product rights	10,000
In-process research and development	18,000
Goodwill	141
Other assets	9

Total assets acquired	43,629
Accounts payable	(711		)
Income taxes payable	(392		)

Total net assets acquired	$	42,526