Lannett Company, Inc. develops, manufactures, packages, markets, and distributes a broad spectrum of pharmaceutical products under generic names. Additionally, we produce a limited number of private label pharmaceutical products for other companies. Lannett Company, Inc. manufactures solid oral dosage forms, including tablets and capsules, extended release, topicals, oral solutions and distributes parenteral as well as ophthalmics. Additionally, Lannett through its wholly owned subsidiary manufacturers active pharmaceutical ingredients (APIs).

According to data reported by IMS Health in June 2009, we are among the top 15 companies, based on number of prescription transactions, for unbranded generic products in the United States. We intend to grow our business organically as well as through strategic partnerships. Over the last year, we have experienced a 10% growth in prescriptions for our products. In addition, our highest selling product, Levothyroxine Sodium, has experienced a 16% annual growth during that period.

Over the past five years, we have experienced a 164% growth in our revenues from approximately $45 million in fiscal year 2005 to over $119 million in fiscal year 2009. This rapid growth has been achieved through strategic partnerships and opportunities resulting from certain difficulties our various competitors have experienced with regulatory compliance.

We have targeted three strategies for expanding our product offerings: (1) deploying our experienced R&D staff to develop products in-house, (2) entering into additional product development agreements or strategic partnerships with third-party product developers and formulators and (3) purchasing ANDAs from other generic manufacturers that no longer seek to manufacture a specific product. We expect that each method will facilitate our identification, selection and development of additional generic pharmaceutical products that we may distribute through our existing network of customers.

We intend to focus on long-term profitability while seeking to secure market positions with fewer challenges from competitors. One of those specific markets is pain management products. Two key examples are morphine sulfate oral solution and hydromorphone tablets. Our Cody Laboratories, Inc. subsidiary has manufacturing expertise in narcotic Active Pharmaceutical Ingredients (APIs) and will allow us to build a market with limited domestic competition. We anticipate that the demand for narcotics and controlled drugs will continue to grow with the Baby Boomer generation demographics and that we are well-positioned to take advantage of these opportunities by concentrating additional resources in the narcotic area.