OnDemand WTP Pricing Research

Lannett: Generic Price Gouging Suit Names Names, Might Be The Death Blow – Lannett Company, Inc. (NYSE:LCI) | Seeking Alpha

Summary

  • The State of Connecticut recently had the court release an unredacted version of their previously filed charges against LCI, MYL and others.
  • The charges filed allege that current LCI employees were colluding with PAR (while the current Chairman of the BOD was in the same role at PAR).
  • The range of potential fines is large ($194m-$300m) but even the low end of that range would call into question the firm’s ability to remain solvent.

The investigation into generic drug price fixing has been picking up steam, the equity analysts refuse to recognize the potential fines in their models. According to this article in the Hartford Courant: 16 companies and 300 drugs are under investigation for what assistant attorney general and antitrust investigator Joseph Nielsen describes, “This is most likely the largest cartel in the history of the United States.”

Read complete article here:

Lannett: Generic Price Gouging Suit Names Names, Might Be The Death Blow – Lannett Company, Inc. (NYSE:LCI) | Seeking Alpha.