In a research report issued today, Canaccord Genuity analyst John Newman maintained a Buy rating on Lannett Company (NYSE:LCI) with a price target of $73.00, as the company announced preliminary fiscal second quarter results, posting net sales of approximately $115 million.

Newman noted, “Lannett reported higher preliminary 2Q15 revenues ($115M) than the Street ($97.5M) and our estimates ($104M), which we suspect is related to price increases and new product launches . Importantly, the majority of the company’s marketed products are only 25-30% of the branded price, a positive going forward as the company continues to have significant room for continued price increases and further margin growth.”

The analyst added, “We adjust our FY15 total revenue forecast to $435M from $385M and our EPS estimate to $4.45 from $3.61. We await further details on the grand jury subpoena, with significant upside to the stock if resolved positively.”

Lannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of branded pharmaceutical products in the United States.