Lannett down 4% on cautious SA article on alleged price collusion

|About: Lannett Company, Inc. (LCI)|By:, SA News Editor

Lannett Company (LCI -3.8%) slips on below-average volume on the heels of an article on Seeking Alpha by The Capitolist about an investigation into price collusion by the Connecticut AG's office.

According to the Hartford Courant, AG George Jepsen is looking price-fixing involving at least 16 companies and 300 medicines.

The Capitolist believes that a potential fine of ~$200M - 300M, if levied against LCI, could bankrupt the company.

Unsurprisingly, generic drug makers reject the accusations citing the lack of evidence of a conspiracy or anti-competitive behavior.

Targeted companies include Teva Pharmaceutical Industries (TEVA +1.1%); Mylan N.V. (MYL -0.1%), Dr. Reddy's Laboratories (RDY -0.4%); Novartis (Sandoz) (NVS -1.4%)

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