Why Lannett Shares Are Down More Than 16%
Shares of Lannett (NYSE: LCI) are down more than 16 percent following a research note from Roth Capital.
Generic drugmaker Impax Laboratories (NASDAQ: IPXL) has come under fire for price fixing of Digoxin, a drug that Lannett also produces. According to the Roth Capital note, Lannett may also get a subpoena. This would be very damaging for the stock, as Digoxin makes up approximately 23 percent of sales.
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The Roth note also commented that the generic drug space may not be sustainable in the long run.
These comments come despite Roth’s Buy rating and $45 price target. Shares of Lannett were last down 16.5 percent to $39.30.
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