LCI - Lannett: Poor Near-Term Prospect And Less Impressive Long-Term Opportunities Than Initially Thought Avoid This Stock
Investment Thesis
We have been bullish on Lannett (LCI) because of its achievement the last 12 months in filling the $200M void that Levo had created, and also its roadmap to $1B in revenue by 2025.
Today, the company hits a roadblock. The gap remains large as competitive pressure has been more intense than we imagined. The company's vision of achieving $1B in revenue by 2025 also looks a lot less likely.
To sum up, the short- to medium-term outlook is more challenging, while the long-term vision is less achievable. Lannett is our biggest investing