NEW YORK (TheStreet) -- Lannett (LCI) plunged Wednesday after the generic prescription pharmaceuticals manufacturer announced it had received interrogatories and a subpoena from the State of Connecticut Office of the Attorney General.
The office is conducting an investigation into the company's pricing of digoxin, which treats heart rhythm problems and heart failure. The Attorney General is inquiring if anyone acted in a way that resulted in "fixing, maintaining or controlling prices of digoxin or...allocating and dividing customers or territories relating to the sale of digoxin in violation of Connecticut antitrust law," according to Lannett's statement.
The company said it complied with "all applicable laws and regulations" and will fully cooperate with the investigation.
The stock was down 15.42% to $39.83 at 12:08 p.m. More than 1.8 million shares changed hands, compared to the average volume of 628,868.
Separately, TheStreet Ratings team rates LANNETT CO INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LANNETT CO INC (LCI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."