lannett to be a one stop shop for gen controlled substances The most important market for Lannett in the following years should be the controlled substance market. The controlled substance market in the U.S. had $26 billion in sales in 2013 with the generic portion contributing $9.7 billion. This market has a high barrier to entry as it is controlled by the DEA. Lannett is one of the 7 companies that have import licenses for CPS, which is a natural raw material from which the APIs are manufactured. Given the size of the market and the high barriers to entry, Lannett has a good chance to grow its market share in the following years. Lannett plans to become a dominant player and a "one-stop-shop" for controlled substances in the U.S. If we look at the chart below, we can see that the projected revenue growth in the next four years will be achieved primarily by the growth of controlled substances, which should also drive higher margins.
(click to enlarge)
Source: Lannett investor presentation