Letter from the Chairman | Job Opportunities | Company Overview

From the Chairman
We have made significant progress in Fiscal 2002.  Lannett's Research and Development efforts have been revitalized; and I am very confident in our ability to bring new products to the marketplace.  Fiscal 2002 was a pivotal year for Lannett.  Lannett's future will be determined by the success of our sales and marketing efforts, and the outcomes of our aggressive new product development tasks.  We have invested time and resources in developing these functions, as we expect to continue to increase our product line, sales revenues, profits, and ultimately shareholder value. 

The pharmaceutical market is a competitive, yet rewarding industry. To succeed in this market, we need to insure that our facility and operations are continually reviewed, and in conformity with Current Good Manufacturing Practices (cGMP'S).  In addition to an FDA-approved facility, we need a strong marketing function, high caliber employees, technical expertise, and a commitment to grow.  Lannett began this journey over fifty years ago; and I believe we have made significant improvements, and will continue to grow, with respect to our product line, and financial performance. 

As the generic pharmaceutical market evolves in the 21^st century, Lannett must evaluate its programs, and adapt to any opportunity that may present itself.  Lannett has been successful in the past few years in using private label supply agreements to increase its market penetration, and sales volumes. Lannett has also continued to pursue contract development and manufacturing agreements with other pharmaceutical companies in attempting to bring new products to the market.  Sales of the Lannett line of over-the-counter ("OTC") products has supplemented Lannett's prescription line, and allowed the Company to reach the financial gains it has in Fiscal 2002. 

Lannett's primary strategy for growth is expansion of the Lannett line of prescription products.  Lannett is developing new generic products for marketing.  Lannett is also planning to reintroduce existing Lannett Abbreviated New Drug Application ("ANDA") products with strong market potential. Lannett has succeeded in developing relationships with large drugstore chains, and wholesale customers. Lannett is also pursuing additional sales in the government, managed care, and internet markets.  As Lannett develops new products, the sales and marketing function of the Company will be in place to communicate these new product developments to existing and new customers. 

With a committed management team and employee workforce, quality manufacturing operations, a strategic product development plan, and an aggressive sales and marketing force, Lannett will continue to prosper in this growing market.  Ultimately, the goal of Lannett's strategy is to increase shareholders' value. 

I would like to thank the family of Lannett employees, the Lannett Shareholders, Board of Directors, customers and suppliers for their loyalty.  Dedication and hard work will certainly provide continued success for Lannett.

William Farber