Lannett: Oxycodone Hydrochloride Approval Incremental Plus, Says Canaccord
In a research report released today, Canaccord analyst John Newman reiterated coverage with a Buy rating on Lannett Company (LCI), and a $55.00 price target. The report follows today’s news that Lannett received FDA approval for its 5 mg oxycodone HCl capsule.
Newman noted, “The FDA approval is an incremental positive accessing a total $7M market. Lannett is one of three active players, suggesting healthy market share is possible”. The analyst added, “We look for Lannett to secure additional FDA approvals for generic products to fuel organic growth versus price increases alone. Specifically, we view any updates on Thalomid progress at FDA as positive, as the product would be a major contributor to sustained long-term growth. Thalomid revenues were $250M in 2013, and no generics have been approved”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a -7.9% average return and a 50.0% success rate. Newman has a -16.0% average return when recommending LCI, and is ranked #3013 out of 3200 analysts.
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