Pharma (Short Generics): Aceto Corporation

Aceto Corporation ($ACET) reported earnings last week and followed them up with a 10Qthis week. The company, in coordination with a new interim CFO from AlixPartners and advisors from PJT Partners and Lowenstein Sandler LLP, is seeking strategic alternatives. Meanwhile, the company was recently non-compliant with its maximum net leverage and minimum debt service coverage ratios under its credit facility and obtained a waiver for the quarter. There is no waiver for the next quarter and so June will be interesting — particularly given downward trends across the board in consolidated net sales, gross profit, gross margins, etc. Not to mention a rise in SG&A...

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