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Nirav Mehta
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  • LCI - The Time Is Coming

    Lannett is in a quagmire since it filed a standard NDA for Morphine Sulfate Oral Solution earlier this year.  The cause of this predicament is an unresponsive FDA which has set no action date.  This has resulted in a slight delay.  Despite a recent positive inspection, it appears that the FDA is still finalizing its review.  LCI is structured to withstand this minor delay, as it has the financial strength and revenue diversification that is necessary for such a circumstance.  My forecast is for LCI to hit the $7 level upon favorable news, which I believe is imminent.  Until then, investors can expect a bumpy, but positive ride to that pricing territory.

    Disclosure: Long LCI, but positions can change at any time

    Tags: LCI
    Apr 26 11:17 AM | Link | 2 Comments
  • Lannett (LCI): A Prescription For Stock Price Growth

    Although many investors have never heard about Lannett (LCI), it is a top 20 generic drug company based on prescriptions.  Currently, the company has one NDA (morphine sulfate oral solution) and 17 generic drug ANDAs pending at the Food and Drug Administration (FDA).  Its future pipeline consists of 60 products in various stages of development.

    Recently, on March 22, 2010, LCI reported that the FDA has concluded its inspection with 12 minor observations.  Despite the company indicating that all minor observations are expected to be resolved shortly, investors seem to have missed out on this very important detail, which is certainly not minor (unlike the observations).  This detail should lead investors to believe that there will not be additional delays and a follow-up inspection will not be required.  What this means is that LCI should be the recipient of several FDA approvals in the near future. 

    The financial strength of LCI is high.  It has $23.6M cash / equivalents as of year-end 2010.  Furthermore, it has trailing 12 month revenue of $120.5M and EBITDA of $16.9M for the same period.  It should come as no surprise that company management also believes in LCI's potential, with an insider ownership of 42%. 

    The pathway has been cleared for several FDA approvals as a result of the recently concluded positive inspections.  Investors who are looking for short-term growth with a company possessing a long-term history of success need to look no further than LCI.

    Disclosure: Long LCI.

    Tags: LCI
    Mar 24 1:51 PM | Link | Comment!
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