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I’m not a fan of reverse splits, but almost
all R/S I have seen are done to maintain presence on an exchange due to poor business performance and share price suffered. It will be a risky move, but could would bring positive benefits that don’t exist today. For example, this would give Elite exposure to investment funds and investors that it doesn’t get today. It’s a unique situation and would be a nice tailwind from new ownership.
Most investing from funds today is actually surprisingly passive. There has been a significant shift over the past 10 years from active to passively held portfolios. Many more funds are mimicking certain indexes. The significant shift from active to passive holders creates different market issues, but initial impact would be stabilization of share price and investor liquidity, neither of which exists today.
Agree 100%. Lannett deal delays timing of when this would be possible. I think it pushes it out at least 18-24 months.
We’ve decided not to pursue it…
Lol nice try, but no. Increase would be illogical without active institutional buying and holding. The good thing is that most fund ownership today is passively held, but that’s a conversation for another day.
Elite diluted hundreds of millions of shares to survive during SequestOx development.
Pending with FDA means absolutely nothing. CEO has mentioned it’s not being pursued.
BTW, those are simple facts not hyperbole. “Those who cannot remember the past are condemned to repeat it.”
Waste of my time. Going back to execution. How is that IR strategy holding up moving market towards intrinsic value. Wait, their isn’t one. Add that to the list of inability to execute.
Lol. Of course not, just under Elite based on their inability to execute or find partners willing to stick around.
Elite has had more failed partnerships and ANDAs sold off for fraction of investment, than launches during CEOs tenure.
I’m not sure that one is even considered an at bat.
You can take the win on SequestOx when FDA approves. Until then, it’s in the gutter.
It was in response to your comment that Elite is crushing it. Only thing being crushed are shareholders with dilution that has exploded since CEO took over along with share price.
When was the last drug launched that brought in revenue after Adderall XR launch 3 years ago? Case closed.
Lol. Not sure why an investor would celebrate an abysmal failure of millions spent leading to a billion+ in outstanding shares. Time to claim it unfortunately as a sunk cost and as Nasrat stated “we are learning” and move on.
Simply put, SequestOx has failed to meet FDA standards for approval. Success would mean approval and even better an ROI for investors. CEO has shelved SequestOx as mentioned multiple times. Not going anywhere.
Meaningful R&D is the question. SequestOx was a failure of epic proportions, pipeline has been held up and hasn’t really progressed. Not much has moved to finish line forcing Elite to limp along. But it is at least a smaller limp than before.
Math works exactly pre vs post split. Poster is referring to issues investors typically have with reverse splits driving stock prices down. Elite has no meaningful investment fund ownership to help stabilize the share price post split giving odds that share price would most likely decrease.
No tech here has been proven to be of any commercial value. What was submitted didn’t cut the mustard. More tests and millions more are required to move it forward, if they even choose to go that route. This is a generic company in a competitive space with relatively low margins - doesn’t command a high PE.
Some tests result are in your favor, others aren’t. Looks like Elite excels at table scraps than the big dogs. Perhaps next one will be another the size of Dantroline.
PE for a generic would not be 17 unless there is proof of significant growth. Until the pipeline and/or international opportunities present themselves a $40M total market (e.g., how many competitors) will not move needle much.
Generic oxy however…
This is still a drug, not a device. Biotech & medical devices have a much different, longer and more complex route to FDA approval. 10 years is typical approval path.
Why bring this up when the CEO has no intention of doing anything with SequestOx? Reformulated or not, it isn’t going anywhere and is the biggest sunk cost in Elite’s history.
Retail shareholders provide no significant value to a publicly held company. Reality bites.
He is the largest shareholder of Elite, meaning he has significant say over the BOD. He doesn’t care about retail investors. It’s incredibly rare that a public company responds to retail investors let alone act like they care.
It had been discussed on board few years back. I can’t recall offhand if Nasrat commented on this directly during a cc. I’d have to research, but it was unfortunately clear that SequestOx and Elite tech at the time is of no value with Fentanyl.
I believe he has alluded to it by class & magnitude. It has not been mentioned specifically, but believe it was inferred.
FYI - Elite’s tech doesn’t work with Fentanyl.
They aren’t going to divulge nuances every step of the way of executing what’s already been communicated - moving to self distribution.
What is there to divulge? They are creating their own sales and or sales/distributor network. There might be a little discussion in Feb call about this, but guessing more will be discussed in during FY fiscal review.
Agreed. Still plenty of risk. I’ve held off adding for now. I’d like to see first couple quarters, cash burn and maybe next filing, which should take place soon.
Filings were clear along with CEO in cc that Lannett terminated relationship. It forced Elite to create sales/distribution network few years earlier than CEO planned.
I wholeheartedly agree as well. Too much risk, but we don’t own all Adderall profit was my clarifying comment. At least not yet…
Other than Mikah’s portion of the profit split.
Think you meant $0.04, not $4.
Almost 45 minutes into trading session. Not a single trade. Congrats to management! Quite the accomplishment.
I believe it’s effective at end of March.
Without live Q&A, more questions always remain than answers. It’s the brief quarterly game of peek-a-boo until he goes into hiding for another quarter.
Lol. I was thinking it was actually because of the anticipated 2025 el nino.
Being sent by Pony Express