Lannett stock soars 34% on news to be exclusive distributor of Posaconazole delayed-release tablets in the U.S.

Generics company Lannett Co. Inc. shares

LCI, -3.21%

soared more than 34% in premarket trade Wednesday, after the company said it has entered an agreement with China’s Sinotherapeutics Inc. to be exclusive U.S. distributor of Posaconazole 100 mg Delayed-Release Tablets, a treatment for fungal infections. Sinotherapeutics has received final approval from the U.S. Food and Drug Administration for its Abbreviated New Drug Application for Posaconazole Delayed-Release Tablet, which is a generic equivalent of Merck’s Noxafil Delayed-Release Tablets.The brand’s products U.S. sales came to about $325 million in the 12 months through June 2019, although generic market values are expected to be lower, the company said in a statement. As part of the agreement, Lannett will make milestone payments based on performance. Lannett shares have gained 21.6% in 2019, while the S&P 500

SPX, -0.32%

has gained 14.5%.

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