Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I don't think they so much "left it out" initially but rather "added it in" to signal ... something
Think about it. What is the potential liability for NOT revealing that? None that I can think of. What is the potential ADVANTAGE for revealing that?
OK....very very interesting.
This the sentence added in the amended 10k:
The Hong Kong-based Customer has informed us that it has been in business for more than five years and it has multiple FDA approved manufacturing sites outside of the United States.
Why would they feel compelled to add this? Hmmmm....
Not sure what changed....rushing off for margaritss.....
This amended Form 10-K for the fiscal year ended March 31, 2012 (“Form 10-K/A”) only amends information in Part I, Item 1 “Business; Contract Manufacturing” of the original Form 10-K, previously filed with the Commission on June 29, 2012 (the “Original Filing”)
ontract Manufacturing
On June 1, 2011, Elite Pharmaceuticals Inc. (“Elite”) executed a Manufacturing and Supply Agreement (the “Mikah Manufacturing and Supply Agreement”) with Mikah to undertake and perform certain services relating to two generic products: Isradipine Capsules USP, 2.5 mg and 5 mg and Phendimetrazine Tartrate Tablets USP, 35 mg (the “Mikah Products”), including (a) developing and preparing the documentation required for the transfer of the manufacturing process to Elite’s facility and the appropriate regulatory filing for the ANDA, and (b) manufacturing finished dosage forms appropriate for commercial sale, marketing and distribution in the United States of America, its territories, possessions, and commonwealths in accordance with the requirements of the Mikah Manufacturing and Supply Agreement; Elite will perform, at its sole cost and expense, all technology transfer, validation and qualification services (including: equipment, methods and facility qualification), validation and stability services required by applicable laws to commence manufacturing the Mikah Products for commercial sale by Mikah or its designees in accordance with the terms of the Mikah Manufacturing and Supply Agreement. During the term of the Mikah Manufacturing and Supply Agreement and subject to the provisions therein, Mikah will purchase from Elite and Elite agrees to manufacture and supply solely and exclusively to Mikah, such Mikah Product as Mikah may order from time to time pursuant to the Manufacturing and Supply Agreement. Mikah will compensate Elite at an agreed upon transfer price for the manufacturing and packaging of the Products. For the Isradipine product, Elite will also receive a 10% royalty on net profits of the finished Product. The payment is to be calculated and paid quarterly. Elite will also receive a onetime milestone payment for each Mikah Product for the work associated with the technology transfer. The milestone payment will be made upon the successful manufacturing and testing of the exhibit batch. The Mikah Manufacturing and Supply Agreement has a term of five years and will automatically renew for additional periods of one year unless Mikah provides written notice of termination to Elite at least six months prior to the expiration of the Term or any Renewal Term.
8
A Current Report on Form 8-K was filed on June 7, 2011 in relation to the Mikah Manufacturing and Supply Agreement, with such filing being herein incorporated by reference.
Transfer of the manufacturing site of the Mikah Products to Elite’s Facility is in progress as of the date of this report.
In June 2011, Elite entered into a commercial manufacturing and supply agreement with ThePharmaNetwork, LLC and its wholly owned subsidiary, Ascend Laboratories LLC (together “TPN”). Under the terms of the agreement, Elite will perform manufacturing and packaging for TPN’s Methadone Hydrochloride, 10mg tablets. The FDA has approved the manufacturing of Methadone 10mg at the Northvale Facility and commercial launch of this product is expected during this fiscal year. As noted above, the initial shipment to TPN of Methadone 10mg was made on January 17, 2012.
On March 16, 2012, Elite executed a Development and License Agreement (“D&L Agreement”) with a private Hong Kong-based company (the “Hong Kong-based Customer”) for Elite to develop for the Hong Kong-based Customer a branded prescription pharmaceutical product in the United States. The Hong Kong-based Customer has informed us that it has been in business for more than five years and it has multiple FDA approved manufacturing sites outside of the United States.
Pursuant to the D&L Agreement, the Hong Kong-based Customer has engaged Elite to develop and manufacture a prescription pharmaceutical product (the “Prescription Product”). Elite agrees to be the Preferred Manufacturer and supplier of the Prescription Product pursuant to the D&L Agreement and perform maintenance activities such as stability or annual report filings for the Prescription Product. The Hong Kong-based Customer, or its designees, shall prepare all applications necessary to obtain any Prescription Product registration and permits required to file the Prescription Product in the Territories required to market the Prescription Product. All Registrations shall be solely owned by the Hong Kong-based Customer including any NDA filed with the FDA for the Prescription Product. Elite shall provide the Hong Kong-based Customer with all pharmaceutical, technical, and clinical data and information in support of the NDA application by the Hong Kong-based Customer for the approval of the Prescription Product. In consideration of Elite’s performance in accordance with the terms and conditions of the D&L Agreement, the Hong Kong-based Customer shall pay Elite milestone for the Development Program and shall pay Elite for the manufacturing of the Prescription Product. Maintenance activities will be paid separately on a quarterly basis.
The Hong Kong-based Customer shall own and market the Prescription Product under its own Trademark. The term of this D&L Agreement shall be effective from the date consummated and shall continue for a five (5) year term after the commercial launch of the Prescription Product. Upon the expiration of the initial term or any renewal term, this D&L Agreement will automatically renew for an additional one (1) year term, unless one Party gives at least six (6) months notice in writing in advance of its intent not to renew. Please refer to the Current Report on Form 8-K filed on March 22, 2012 in relation to the D&L Agreement, with such filings being herein incorporated by reference.
My replies back:
nothing? when they have less than 400k of cash? If it was well nothing they would have paid it off. No they are using cash flow to fund growth which in turn will help pay off the tiny debt as long as there is no pressure to pay the debt.
( there is no way of knowing that and even if it were true, how would they monetize that? Do you realize how long it would take to sell their position?). There is no way of knowing the exact temperature and weather conditions the next day yet we all plan on our day based on the best available information. If perfect information existed there would be no need for a market. Why would it take long to liquidate a position? They could sell it back to Novels other principals quite easily
(I guess we might find out in the event of liquidation- but in terms of paying for debt that facility is irrelevant) Again you are short sighted. The bond holders are surely taking into consideration the VALUE of their investment. If the liquidation value of the company, taking into consideration the value of their facility and IP properties, protects them from taking a loss they have less incentive to push for liquidation.
( we have had this discussion before and I do agree that NJEDA would rather not foreclose. But it is just silly to argue that this is not an issue, NJEDA sent the notice of default precisely so they are ready in the event they need to.) Good, glad you agree that NJEDA would rather not foreclose. I have held a lot of debt in my day. You would be a moron not to protect your right to foreclose. That does not mean that is your desired outcome.
I appreciate the devil's advocate thing so keep trying.
First off. Yes, ELTP has "negatives". Thats pretty much why it's trading for .13. If all of these risks did not exist the stock would be $5+. People invest in stocks like ELTP because they make calculated risks based not just on the past or the present, but on the future. When you are right the payoff can be immense.
I'll talk to your points anyway, no matter how much they ignore the future.
debt - debt is like $3,400,000...which is like, well, nothing. Their Novel holding alone is easily worth three times that. Also, how much do you think a 15,000 sq foot DEA/FDA/CGMP compliant facility is worth?
notice of default - and yet the bondholders choose not to foreclose on the lien. Why? what is stopping them? The next step in the foreclosure process is a notice of foreclosure sale...has that happened? Why not? The notice of default has been in their 10Q's for quite a while now. Elite proposed a new payment arrangement. They are waiting to hear from the bondholders. My bet is the bondholders would prefer to see ELTP succeed. In the meantime the bondholders make very nice interest as Elite continues to make their interest payments on time.
low cash - They have access to JT's $500,000 line of credit. So what is the problem? Have their suppliers cut them off due to lack of credit? No.
negative working capital - Name three stocks trading for less than .12 that have positive working capital.
internal controls - They are working on this. Lack of internal controls allows for fraud. However even the best internal controls are no guarantee against fraud. The history of business is ripe with accounting scandals even with companies that said or thought they had adequate internal controls. Jerry and Carter actually spoke to this a long time ago in a CC. That is one reason they brought Carter on, to implement adequate controls. Dig deeper.
going concern qualification - see negative working capital.
There is a proposal to the bondholders to push it out a bit. They make the interest payments but they are behind on the principal payments. They say it has had no effect on their ability to conduct business. They have not to date had any response, as far as I know, to their proposal to the bondholders.
I suppose any plan to pay debt involves turning a profit, which they are, IMO, on the verge of doing. The debt isn't really very much. It's less than 10% of their market cap.
Gordon, you get my email?
First off. Yes, ELTP has "negatives". Thats pretty much why it's trading for .12. If all of these risks did not exist the stock would be $5+. People invest in stocks like ELTP because they make calculated risks based not just on the past or the present, but on the future. When you are right the payoff can be immense.
I'll talk to your points anyway.
debt - debt is like $3,400,000...which is like, well, nothing. Their Novel holding alone is easily worth twice that. Also, how much do you think a 15,000 sq foot DEA/FDA/CGMP compliant facility is worth?
notice of default - and yet the bondholders choose not to foreclose on the lien. Why? what is stopping them? The next step in the foreclosure process is a notice of foreclosure sale...has that happened? Why not? The notice of default has been in their 10Q's for quite a while now. Elite proposed a new payment arrangement. They are waiting to hear from the bondholders. My bet is the bondholders would prefer to see ELTP succeed. In the meantime the bondholders make very nice interest as Elite continues to make their interest payments on time.
low cash - They have access to JT's $500,000 line of credit. So what is the problem? Have their suppliers cut them off due to lack of credit? Did you run a D&B report?
negative working capital - Name three stocks trading for less than .12 that have positive working capital.
internal controls - They are working on this. Lack of internal controls allows for fraud. However even the best internal controls are no guarantee against fraud. The history of business is ripe with accounting scandals even with companies that said or thought they had adequate internal controls. Jerry and Carter actually spoke to this a long time ago in a CC. That is one reason they brought Carter on, to implement adequate controls. Dig deeper.
going concern qualification - see negative working capital. Also, give them credit for being honest and conservative about their financial condition. Most pennies would never be that open. Go check the last ten stocks that traded for under .20 a share that went under. Tell me how many of those ever issued a "going concern" statement?
Facts...perhaps. But facts without context.
What questions would you have me ask?
So what is your concern exactly?
We can all read a 10k/10q
Is $3,385,000 in debt, that HAS NOT BEEN CALLED, a big concern to you? Or are you just doing your civic duty....every day...in pointing out what is very publicly available?
Are you accusing posters here of "hiding" these facts?
It's a .12 stock. We get it.
Its a new day....27,000 was yesterday
Yes but to 2mm, not .25 to 1mm
"Each microtablet has the exact dimensions of 2 mm in diameter and height"
It was specifically termed as a bridge loan. Hopefully we will find out what it is a bridge to.
Good read. Thanks for posting that.
This was nice to see:
Guidance on development of abuse-resistant
formulations of opioids
– Provide regulatory guidance on development of
abuse-deterrent formulations and on post-marketing
assessment of their performance
– Many challenging scientific issues!
– Incentivize product development
– Avoid negative impact on Generics development
Dr. L.
Fair enough. What do you think Novels revenue and valuation is?
If you are unwilling or incapable of arriving at some kind of estimate or opinion based on the information available then what do you need? A monument carved in stone signed by the Congressional Budget Office?
Seriously, neither Cargo nor I have asserted our Novel valuations as "fact". We took the available information and made reasonable assumptions.
If you have no faculty for inference, induction, or deduction then really why bother commenting at all?
This is the very nature of penny stocks. Markets are imperfect. That is why people risk hard earned money in hopes of exploiting market imperfections.
Reasoned estimate based on facts from Elite's filings. You should read them or better yet read my prior post where I provide the details and the thought process.
Could it be $15,000,000 or $25,000,000?
Certainly.
But it sure as heck is a LOT more than $3,000,000 and that is the point. Try to keep up.
Have a great weekend and don't get hurt, we need the entertainment.
IMS data also list three additional products being marketed by Gavis.
Furthermore, IMS data for the three products listed, indicate growing revenues over the last 3 years.
Seems specific to three products marketed by Gavis to me.
Perhaps you should verify with IR.
and Novel 10% ownership = $20,000,000+ in value.
You think Elite would lie about that in an SEC filing?
I wanted to dig into Cargo's assertion on Novel value. I'm a lot more conservative than he is so this is what I came up with. Cargo could very well be right as we have to guess a lot and make some assumptions.
Well from the filings regarding Novel:
As of June 2012, the US-FDA website lists 16 products approved in the name of Novel and an additional 7 products approved in the name of the Novel’s marketing arm, Gavis Pharmaceuticals (“Gavis”). IMS data also list three additional products being marketed by Gavis. There are accordingly a total of 26 products currently identified as being approved/marketed by Novel and Gavis, with such total representing an increase of 7 products as compared to a comparable point in the prior year.
Furthermore, IMS data for the three products listed, indicate growing revenues over the last 3 years. Such revenues, as reported by the IMS were $7.3 million, 13.1 million and $24.9 million for the years ended March, 2010, March 2011 and March 2012, respectively.
We also know from public information that Perrigo Company acquired rights in 2010 for an undisclosed amount to an additional Novel ANDA approved in 2010 for the product HalfLytely®. Novel believes this is a first to file ANDA. Perrigo expects to be in a position to launch a generic version of this product later this year and they expect to have 180 days of generic exclusivity. Novel will manufacture the product exclusively for Perrigo. Annual sales for the branded product were approximately $80 million according to Wolters Kluwer.
Read more: www.faqs.org/sec-filings/120629/ELITE-PHARMACEUTICALS-INC-NV-_10-K/R12.htm#b#ixzz259EiuvSQ
So think about it. They have 26 products. Just three of them are generating $25,000,000 in sales. So their annual revenue could easily be $150,000,000 then add in the Perrigo deal.
Market cap should easily be $200,000,000.
So Elite has 10% = $20,000,000
Novel is worth at least .05/share alone.
What are you guys? Ornithologists now!?
First off. Yes, ELTP has "negatives". Thats pretty much why it's trading for .11. If all of these risks did not exist the stock would be $5+. People invest in stocks like ELTP because they make calculated risks based not just on the past or the present, but on the future. When you are right the payoff can be immense.
I'll talk to your points anyway.
debt - debt is like $3,400,000...which is like, well, nothing. Their Novel holding alone is easily worth twice that. Also, how much do you think a 15,000 sq foot DEA/FDA/CGMP compliant facility is worth?
notice of default - and yet the bondholders choose not to foreclose on the lien. Why? what is stopping them? The next step in the foreclosure process is a notice of foreclosure sale...has that happened? Why not? The notice of default has been in their 10Q's for quite a while now. Elite proposed a new payment arrangement. They are waiting to hear from the bondholders. My bet is the bondholders would prefer to see ELTP succeed. In the meantime the bondholders make very nice interest as Elite continues to make their interest payments on time.
low cash - They have access to JT's $500,000 line of credit. So what is the problem? Have their suppliers cut them off due to lack of credit? Did you run a D&B report?
negative working capital - Name three stocks trading for less than .12 that have positive working capital.
internal controls - They are working on this. Lack of internal controls allows for fraud. However even the best internal controls are no guarantee against fraud. The history of business is ripe with accounting scandals even with companies that said or thought they had adequate internal controls. Jerry and Carter actually spoke to this a long time ago in a CC. That is one reason they brought Carter on, to implement adequate controls. Dig deeper.
going concern qualification - see negative working capital. Also, give them credit for being honest and conservative about their financial condition. Most pennies would never be that open. Go check the last ten stocks that traded for under .20 a share that went under. Tell me how many of those ever issued a "going concern" statement?
Where does it say that?
Oh stop it now. He was not fired. He dared issue an HONEST analysis about a questionable company (rightfully so)
http://jacksonville.com/tu-online/stories/081302/bus_10165041.html
Stock analyst resigns amid conflict
Pharmaceutical analyst Jerry Treppel, who was placed on administrative leave from Banc of America Securities for comments he made to a reporter, has left the firm.
John Roehm, a spokesman for the investment banking arm of Bank of America Corp., said Treppel resigned June 15, a month after he was placed on paid leave.
Treppel, who covered such companies as Biovail Corp., was put on indefinite leave after he told a reporter in late April that Biovail's actions relating to a patent for hypertension drug Tiazac looked like fraud.
Treppel didn't immediately return a telephone call yesterday seeking comment.
On the same day he made the fraud comment, Treppel downgraded Biovail's stock to a ''sell'' rating and issued a negative report on the company. Although it placed him on leave for his comments, Banc of America Securities stood by the report and the rating.
Also see: http://en.wikipedia.org/wiki/Biovail
In March, 2008, the United States Securities and Exchange Commission (SEC) sued Biovail and some of its former officers, alleging that "present and former senior Biovail executives, obsessed with meeting quarterly and annual earnings guidance, repeatedly overstated earnings and hid losses in order to deceive investors and create the appearance of achieving earnings goals. When it ultimately became impossible to continue concealing the company's inability to meet its own earnings guidance, Biovail actively misled investors and analysts about the reasons for the company's poor performance." Biovail settled for $10 million US.[2] Gradient Analytics, successor to Camelback, issued a press release stating that the SEC’s suit "confirms the validity of Gradient’s critical analysis of Biovail but raises serious questions about how companies retaliate against analysts with threats, intimidation, and lawsuits."[3][4]
They did $10,000,000 in revenue year ending 12/31/2011.
OK, lets assume that Acura and Elite are similar enough to compare.
Acura has 45,860,000 shares outstanding @ $1.60/share.
Elite has 376,000,000 shares outstanding.
If Elite had the same market cap as Acura of $72,000,000 Elite would be trading at about .19/share.
Of course Acura was trading at about $3 a month ago until Pfizer pulled plug on them a bit.
So maybe we could argue .38/share.
Also Elite leases the 15,000 sq ft new facility and does not "own" it but I guess the lease is assignable? They own the original facility. (Yes NJEDA bond lien and all).
Not a perfect analysis I know but gives us something to bandy about.
Ummm OK. Doesn't exactly answer the question I asked but thanks anyway.
Not to be a party-pooper but all of 0.23% of ELTP shares have traded so far today. Not exactly overwhelming.
Beats going down I suppose!
I think Cargo's comment about the facilities value, being DEA/FDA/CGMP certified etc, is worth further examination. What would a "major pharma" pay for such a facility? Can we think of any examples of similar sized facilities and their values? Even without products/pipeline?
I believe it was mentioned in a previous CC that Elite had the capacity to manufacture 500,000,000 to a billion tablets/capsules annually with the new facility.
No, no tax benefit.
However the company can't pay dividends until they erase the accumulated deficit.
This explains it fairly well: http://www.ehow.com/info_12184977_can-pay-dividends-negative-retained-earnings.html
Prior earnings cannot be factored into the decision to make a dividend payment when the current earnings statement shows a negative balance. A company could conceivably post positive earnings for nine years in a row and have one bad year in which all of those earnings are lost. A dividend payment could not be paid, despite the fact that the company had good financial health 90 percent of the time. For instance, if a company retains $100,000 per year for nine years and accumulates $900,000 in retained earnings, but then loses $1 million in its 10th year in business, it could not pay a dividend to shareholders because its balance sheet would be showing negative retained earnings of $100,000.
Believe me I'd much rather see positive retained earnings. But if Elite had positive retained earnings I doubt it would be trading at .10 a share.
Accumulated deficit and current debt are not the same thing.
Check the level of ELTP's current debt (currently outstanding debt obligations). You will be surprised.
An accumulated deficit is the accumulated difference between revenue and expenditures. When ELTP issued stock in the past, it acquired money. It spent the money. And, because it had no revenue (because it was in the initial stage of its life and dedicated exclusively to R&D), its accumulated deficit rises, but there is no added debt.
A company, unlike the US government, can fund its deficit by issuing stock instead of debt.
Accumulated deficit is a fairly meaningless data point when one is trying to value a company.
Tang...
I'll repeat this from my previous post.
Per Carter Ward(CFO) regarding financing:
"Expect something in near future...."
Is that "all" of Usdan's companies?? He operates several...
You are right, how silly of me. I'll sell immediately.
Is it to much to ask for coherent sentences?
So you are accusing soccadoc and g2nec of being paid pumpers?
ELTP just posted 20% revenue increase following a 26% revenue increase the previous quarter and you call that lousy?
What requested $800,000 loan are you talking about?
Updated the spreadsheet a bit. Revised some forecasts etc.
https://docs.google.com/spreadsheet/ccc?key=0AgI9WYgqHk9mdEZWLTlVdmJSQzJsZmw0YkdGTFlYN0E&pli=1#gid=0
Anybody know what is up with Isradipine?
I made a mistake here so correcting:
Phentermine:
Elite’s revenue derived from phentermine 37.5mg tablets during the three months ended June 30, 2012 and 2011 were approximately $162k and $217k, respectively, with such amounts including manufacturing revenues, royalties and a $145k milestone payment triggered by the shipment of the product in April 2011.
Take the 145k out of the 2011 number they went from 72k to 162k
Lodrane:
Elite’s revenue derived from Lodrane D® during the three months ended June 30, 2012 and 2011 were approximately $142k and zero, respectively.
Methadone:
Elite’s revenues derived from the contract manufacture of Methadone 10mg tablets during the three months ended June 30, 2012 and 2011 were approximately $128k and zero, respectively.
Hydromorphone:
Elite’s revenues derived from Hydromorphone 8mg tablets during the three months ended June 30, 2012 and 2011 were approximately $78k and zero, respectively, with such amounts including manufacturing revenues and royalties paid pursuant to the Precision Dose Agreement.
All combined they went from: 72k to 510k (In one quarter) on these four items since last year.
One would think. And with that Naltrexone and Phendimetrazine Tartrate, the two transfers pending, should be approved shortly thereafter.
Right after that announcement the following seeking Alpha articles came out:
http://seekingalpha.com/article/308361-profitable-future-appears-in-store-for-intellipharmaceutics-shareholders?source=yahoo
http://seekingalpha.com/article/308884-intellipharmaceutics-a-deep-value-opportunity-in-generics-and-specialty-pharmaceuticals?source=yahoo