Shares of pharmaceutical developer and distributor Lannett  (LCI - Get Report) were soaring after the company agreed to be the exclusive U.S. distributor of fungal disease medication Posaconazole delayed-release tablets, made by China's Sinotherapeutics.

The drug is a generic equivalent of Merck's (MRK - Get Report) Noxafil delayed-release tablets.

Lannett will provide sales, distribution, and marketing support for the drug, and in exchange will get a share of the profits. Shipments are expected to start shortly.

"Given the market dynamics of the product, we expect Posaconazole to be a meaningful contributor to our business," said Lannett CEO Tim Crew in a statement.

The shares were jumping 31.84% to $7.95 in premarket trading Wednesday.

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Constable owns none of the securities listed in this story.