Lannett Company, Inc. (NYSE:LCI) shares have spiked over 10% on Monday after peer generic drug company Akorn, Inc. (NASDAQ:AKRX) confirmed that it is currently in discussions with a subsidiary of German healthcare giant Fresenius SE about a potential acquisition of Akorn. In terms of potential take-over price, various Wall Street analysts have different estimates. Randall Stanicky of RBC Capital thinks Akorn shares are relatively fully priced, while Chris Cooper of Jefferies thinks a take-over price of $36-$40 for Akron is reasonable given previous comps.
Traders have bid Lannett Company, Inc. (NYSE:LCI) higher due to relative valuation as well as improved sentiment. The potential take-over of Akorn also makes Lannett a more likely M&A target in some trader’s eyes, although no formal or rumored bid has materialized.
What Does The Smart Money Sentiment Say?
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According to our data for the fourth quarter, the number of elite funds with holdings in Lannett halved to 7 from 14 (at the end of Q3), but the amount held rose to $94.23 million from $71.99 million. In terms of individual activity in the fourth quarter, James E. Flynn‘s Deerfield Management established a new stake of 2.007 million shares while Philippe Laffont‘s Coatue Management trimmed its holdings by 29% to 1.12 million shares.
The Bottom Line
Lannett Company, Inc. (NYSE:LCI) shares have spiked higher due to the news that Fresenius SE is currently in talks to potentially buy peer Akorn, Inc. (NASDAQ:AKRX). For more reading, check out ‘Most Addictive Drugs In the World‘.