ANI Pharmaceuticals (ANIP)

[Just the facts maam]

Ice Nine, I am not concerned about earnings. ANI had to hire more employees and start as second shift in June-July to keep up with demand. This was never announced by the company. They adding a $6 million expansion mostly to accommodate for additional product storage. Ironically, approx. two years ago they were stating that they had sufficient manufacturing capacity to last 10 years. Within the last year they have talked about acquiring or building a center of excellence.

For Q3 the may also benefit from added EEMT sales as a competitor ran out of API and ANI has a mostly exclusive (one previous commitment still exist for the supplier) contract with the API supplier. Unless additional API for EEMT was found, unlikely, since it is a DESI product, then ANI should have gained market share from the 50% they had to the 85% they project to have when the remaining API product flushes itself out.

Analyst have not factored this in nor have they factored any potential sales from the Aspen partnership for HCP where ANI just got it listed as an available Generic on the Pharmacist Letter issued for September. I expect it to take some sales away from Makena which was estimated to be in $345 million range for 2016.

You will soon realize that the CEO, Arthur Przybyl, is usually conservative in his guidance. I expect another earnings surprise possibly greater than the one from Q2.

JMHO