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Not necessarily perception, but rather using specific c-suite National recruiting firms like Korn Ferry. A simple job post on a website doesn’t catch the attention of the right talent and would be worthless. On flip side, we go through CFOs like water…
Why do a buyback now when they haven’t secured their revenue stream post Lannett? Doing so now could put liquidity support in jeopardy. I’d expect Elite will be Cash Flow negative for Apr-Jun quarter and will need to pull from cash reserves.
So is trading. Absolutely no shares traded after 3 hours into the session. Crazy.
Huh? The entire purpose of Elite’s bioequivalency trials are to confirm the generic is equivalent to the brand. If trials prove bioequivalency, the filing is then prepared and submitted to the FDA. That’s it. Full stop.
If you weren’t aware that Elite is a generic drug company you may want to revisit your investment research.
It’s a generic bioequivalency trial. This isn’t a path to new technology.
That was’t implied to be negative, but rather an FYI that telehealth isn’t the answer. Telehealth regarding Adderall is getting more regulated, which pushes doctors to have more control, but slows down script writing. It may push more Elite’s way, it may not. All depends on contracts we have in place.
Adderall telehealth scripts may not last much longer. Been all over news past few weeks.
https://www.hklaw.com/en/insights/publications/2023/03/dea-proposes-new-telehealth-prescribing-rules
Closer v4.0?
It won’t be, it’s a potential generic of the branded. Can’t be better, but can be similar.
Well, let’s see a filing first. Would be a good start.
I think the same about those who think that the stock is manipulated. It’s a low trading volume, high OS stock with big float and no IR or CEO care in the world to do anything different to change it, other than complain.
I don’t disagree. CEO has become more cautious as to what he communicates. R&D continues, clinical trials continue, gross margins continue to expand, etc. I’d like to see some bigger products and products that we actually keep vs selling to 3rd party. The company is growing, albeit far slower than anyone shareholder would like. I expect that shift away from Lannett will be our last major hurdle before we see faster growth driving more investments in the company. I’m cautiously optimistic about the next couple of years.
I think the commentary will be more important than the results. We know Apr-June Q is a ramp of inventory to prep for launch. I want to hear more about contracts being signed and future business to help me as a shareholder understand true risk & reality post-Lannett.
Well, you can answer that question yourself. How is Elite doing with clinical trials? Have they stopped?
I’d really like to see ISS or Glass Lewis take on an OTC proxy fight.
No more dreaming of an acquisition. Not in the cards right now. It will be, but not now.
Absolutely. I work for consulting firm where we have lots of CFOs or fractional CFOs. Hourly rates are pretty high, but it’s the flexibility that’s nice for companies in a bind like this. I’d prefer to have FT CFO sign off on 10K though.
CFOs leave after an acquisition, not before. This is not a sign of an acquisition. It’s a sign of a desperate CEO that can’t hang on to a CFO.
If a CEO only sees the CFO as a number cruncher, that CFO should leave immediately. This isn’t 1970.
Someone forced you to buy the stock?
Depends on their cash situation and margin forecast. Cash burn is biggest risk to investors signaling timeframe for a needed stock issuance until can become CFP. Margins of 5% are not going to get us there anytime soon.
Mikah is not a distributor, thank goodness.
I’m eager to get the transition behind us and see the margin benefit flow through. Stabilization post Lannett will lead to owning 100% of Adderall further lifting margins. 30 days and counting…
Ths is a tiny company on the OTC with one manufacturing facility. They just became CFP not that long ago and just took out their first bank loan. Yes, this is a small company with lean headcount. It’s barely moved in total FTE count over the past several years.
CFO/Treasurer are combined roles at many much larger companies. How do I know this? Based on years of finance & treasury experience.
That’s normal for a small company. There’s no need to separate CFO & Treasurer. Secretary barely does anything and is more a title for legal purposes. It’s usually the corporate counsel, but Elite uses external counsel so finance makes most sense.
To your defense, I see President, CEO & Chairman held by one person the much bigger issue.
A revolving CFO door does not bode well from any angle you look at it. It’s extremely disappointing. I’d personally worry more about CFOs rotating through than CEOs as CFOs are closer to the numbers. I’m cautiously optimistic that it has nothing to do with transition away from Lannett.
Why would a company file an 8K of this nature unless it’s a done deal? This is a company that avoids PRs. Very odd or amateur, not sure which.
*CEO & Board
It’s possible, but usually this is a notice with a defined end date where another opportunity is already agreed upon. CFO has no incentive at this point to go above and beyond. Would be great if he did stay until filing. Sometimes CFOs stay on as brief consultant.
This is another black eye for both CFO and board as both vet a CFO before bringing one on. I could be wrong, and often am, but I think someone’s ego is driving issues at c-suite level.
If Kirko leaves…
CEOs are a big deal when there’s a change. When there are CFO changes that’s a bigger deal. When there are multiple CFO changes, we are in unchartered waters. Usually CFO changes take place like this when there are significant accounting issues and CFOs depart to avoid getting stuck holding the bag. I don’t think that’s the case here. I get the feeling that no one wants to work with the CEO. This is why VP Mfg has a contract. He was given golden handcuffs to stay a few more years.
To me, this is really disturbing before 10K filing. Last CFO lasted about as long. CEO wants to do what he wants to do and not take counsel from Finance so you create an inflow/outflow of CFOs.
Getting CFO promptly is of utmost importance to get 10K filed on time. The fact that CEO couldn’t get Chen to stay on through filing is a big red flag.
What CFO would want to work for a company that goes through finance leadership like this? Just don’t bring back Carter Ward…
Ok, 2 additional tiny drugs…
You mean with Dantroline & Trimipramine? Those are 2 very tiny drugs. I’d prefer to see international sales of Adderall for now. Much bigger market.
Dip is from not being able to ship. Elite has to build up their own inventory starting April 1. Since we recognize revenue on a shipment basis, inventory build takes place first prior to being able to meet that demand. There will be a dip in revenue, especially since we know whatever we make in Q1 is being sold so there is little to no lag for profit splits to count on after the separation from Lannett.
I’m sure Lannett is hurting from not having Dantroline crumbs.
Thanks for the update. Sad to hear the news.
I believe market is waiting for Elite to show they can consistently execute their R&D pipeline and successfully transition away from Lannett. We’ll know more about the transition late 2023 so I wouldn’t expect much movement until then.
It’s just a bucket separation. Much more than 7.5M was incurred over a series of years to pursue SequestOx tech and keep the lights on.
Good grief, look at a P&L.
Perhaps in regards to some ratios, but magnitude matters, amount of gross profit dollars matter, EBITDA $ flow through matters, etc.
Just because Elite claims success it doesn’t translate to an FDA approval. We have found that out many times already.
Although you bring up a good point. We have invested in and pursued several products that we are bailing on. SequestOx was the biggest sunk cost by far wasting millions on keeping Elite afloat as a one product company. Codeine w/ APAP was never pursued (and hasn’t been sold for years after trying) and now Vigabatrin being recently sold off. My hope is that the talent we now have can help better decide which products will be marketed well before the investment.
I don’t disagree. There currently is no market for it. FDA stopped SequestOx in its tracks, which was probably a good thing so millions more wouldn’t be invested in it. Little use in a product that no one buys other than for lobbying efforts, which doesn’t exist at Elite.