Why Lannett Shares Are Down More Than 16%

Shares of Lannett LCI are down more than 15 percent following a research note from Roth Capital.

Generic drug maker Impax 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 16.6 percent to $39.27.