+ Watch LCI
on My Watchlist
The Company develops, manufactures, markets and distributes generic versions of pharmaceutical products.
They wasted $1.B on aquisitionnothing positive
Buying your next biggest rival, just after they lost their biggest customer adds a lot of variables.In general Generic Drugs can be lucrative....unless "the Man" intervenes in the perceived gouging to the captive sheep.News dropped Lannett by about 25%. May take some time to recover, but 35% margins, revenue growing much faster than cost of goods and SG&A, (very unusual at this level)Books look very good sans the buyout of the stub.Monitor.
baby out with bathwater! this is a well established generic drug co. sell at a discount oversold in my opinion 10-2015
Great fundamentals. Look at stats and balance sheet.
Lannett Company manufactures and distributes generic pharmaceutical products in tablets, capsule and oral liquid forms. The company has more than 40 marketed products across several therapeutic areas, but is strategically targeting its capabilities in controlled substances to drive its growth. Getting exclusive licenses is one important advantage that sets Lannet apart from other generic companies. For instance, it is an exclusive distributor of the Levothyroxine Tablets, one of the most prescribed drugs in the U.S. as well as being one of 7 companies named by the Drug Enforcement Administration with the ability to import concentrated opium straws, used in pain management. Having limited competition from other generic drug makers allows Lannett to enjoy a 70% gross margin and an impressive compound annual growth rate of 22% in the last 12 years. It also consistently generates a remarkable return on equity of 40% and has a levered free cash flow margin of 11%. Furthermore, here are two reasons why I think now is a great time to invest in Lannett. First, the company is only trading at a 17x earnings multiple and a PEG ratio of 0.2, low compared to the industry P/E average of 95x. And secondly, Lannett currently has 21 Abbreviated New Drug Applications in its pipeline, a robust number relative to its market value of $1.6 billion. A rapidly aging population, coupled with increasing prevalence of chronic illness and growing pressure from insurance firms to cut healthcare costs, Lannett is set to benefit. That’s why I believe Lannett has great growth potential.
Taking advantage of short term price inflation on generics. I don't foresee this as sustainable, thus short term outperform...looking for a pop.
Affordable Care Act
cannot justify value at 23, see it at 9
charles schwab screener A+ Pharma Generic low PEG < 1
FDA approvals opened up after 483's were fixed.Backlog of approvals to comeCody labs starting to hit stride and provide profits.
Looks like morphine sulfate is the rage.
LCI seems to have plans for new products and marketing they look as if they will do well over the next few months holding their own while the market makes the necessasry corrections.
The stock has been on the rise as of late and is doing so on the back of solid financials. The company in the past five years has had a top out in the low twenties with similiar data to what it is displaying currently. 200% increase within the next 1-2 years.
Whoever said this stock is under valued needs to learn what value really is. LCI has a PE ratio over 100. The stock trades within 10% of its 52 week high. Returns on assets, equity, and capital is almost nothing. No dividend. Less than 2% profit margin is weak. This is not value. I want to see this stock drop down to $3 per share before I close this out.
Great business in a growth industry. Fundamentals look real solid.
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