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There are no buyers until the company can replace the 90% of revenues that will be lost when Lannett/Elite partnership ends. We won’t see the impact until next year and see how prepared Elite is for this transformational opportunity, for better or worse, depending on their ability to execute.
Garbage.
Yes, “billions” was said or they would see themselves as failures. Nasrat’s words, not mine.
Lannett is showing Elite the door, not vice versa.
Yes that is a goal. When was the last time Elite was able to hit one of their goals?
SequestOx, billions in revenue, 2 recent CFO departures, sales/distributor partnerships like a rotating door, etc.
Per last cc, “I was planning on it once we get few more ANDAs, and maybe four more, to make it financially more feasible.”
4 more ANDAs. They aren’t even close to launching that many anytime soon and yet here they are in a position where the odds are stacked against them once again.
That Adderall relationship is counting down the days until termination.
Extremely doubtful
There will be no shortage next year. Shortage issues are expected to be resolved this year by the major Adderall players.
The deal is that the deal ended for Adderall. Elite is now flying solo for 90% of their revenue stream? Big risk? Absolutely. Lots of small companies think they can fly solo without a sales/distributing partner and fail miserably.
How long ago was this approved? And why hasn’t it launched yet?
You can put two and two together I assume.
Lol.
Lannett relationship is done by March 2023.
Stock investors are forward looking beyond few months and this is a massive income gap 90% of their portfolio.
The other lines of business cannot and will not pick up for loss of Adderall business. They aren’t even close in revenue potential.
Dexcel may or may not happen. I wouldn’t count on it with regulatory bodies being involved. Anything that results from this partnership should be icing on the cake, even though our cake is now being taken from us with Lannett relationship dissolving.
Early Oct release will benefit Q3.
If Lannett is running out it means that they are selling everything Elite can make. I think that’s great news to maximize the little time we have left with them to boost our cash reserves…because we certainly will need all the cash we can get to get us through a tough transition ahead.
Doubt he had many options from loan standpoint. They don’t have a long history of CFP, which a bank would want to ensure they get both principal and interest. Banks are extremely risk averse.
Lannett running out of Adderall ER stock.
“Lannett Co. and Par Pharmaceuticals, part of Endo International Plc, are the latest companies with limited supply of some doses of generic extended-release Adderall, according to a website updated Monday by the University of Utah’s drug-information service, which tracks drug shortages.”
https://www.bloomberg.com/news/articles/2022-09-19/adderall-shortages-in-us-spread-to-two-more-drug-suppliers
It’s alphabetical by ticker. :)
Only benefits CEO if he sells or if he can sell…
Are you trying to tell me that $3,500 in total market value exchanging hands today isn’t a big win for shareholders? :)
No CEO cares about retail shareholders. Your buying/selling has virtually no financial impact on the company.
Psst. Nasrat doesn’t care about retail holders selling shares.
Could?
From WSJ article:
“Teva expects a full recovery for all inventory and orders in the coming weeks, which should resolve the disruption at the pharmacy level…”
“Since manufacturers have to adhere to quotas limiting how much of the medication they can produce, others can’t step in to fill the void, said Erin Fox, senior pharmacy director at the University of Utah Health.”
Lol rise of the bourgeoisie
We’re in this gray area now and Lannett isn’t incentivized to go after new business as the relationship with Elite is ending. I wouldn’t expect Lannett to capitalize on the shortage beyond who Lannett already distributes to today.
Except that is a fictional ending. Lannett is our exclusive US sales & marketing distributor for Adderall.
Has has sold zero shares, but he has made millions off non-arm length transactions and being significantly overpaid for many of the worthless initial ANDAs he sold to Elite. He unloaded his garbage.
If options didn’t work as an incentive they wouldn’t exist. We wouldn’t see management selling shares at publicly held organizations. Options have become the primary form of compensation. There was a Fortune article earlier this year that claimed 2/3 of CEO compensation comes in stock option form! Where compensation incentives are set the execution follows. Public company management is incentivized to make decisions in best interest for shareholders and them. Elite’s CEO has both sides of his bread buttered (maybe even the crust too) through non-arms length deals with Elite, via Mikah and via Elite. He has made out like a bandit.
Wonder why key officials are given stock options? Because their business decisions, execution, vision & communication can influence the stock price. When a stock price languishes its tone to revisit one of the above or the leadership itself.
Not necessarily, it may be for $XM less debt and/or other items. Can’t simply divide buyout price by outstanding shares.
Which may not ever actually come to fruition waiting forever a one-time event. Waiting to find that needle in a haystack opportunity.
Sales goes out window. Their biggest revenue makers need to rebuild from scratch. Retail investors have been saying for years that the company will be sold in a couple years. Each time, company basically has to start over and rebuild. Will v4.0 be final rebuild?
DCF is a great tool along with R&D pipeline, good margins and redundant overhead that would be eliminated after an acquisition. However, it all really depends on whether there is a true buyer and what they deem the company is worth. Could be more, could be less than current share price. Company has been and will continue to be a show me stock. Now it needs to prove whether it can survive without 3rd party sales/marketing distributor. This is a 4th and long situation with 3rd string quality QB.
No, that is not what Nasrat has stated.
Elite’s contract for Adderall in US is exclusive and Lannett has no incentive to go after new business. I’d expect Elite to miss out on near term nationwide shortage opportunities.
Or the positions were pulled since Elite will be managing its expenses tightly until transition away from Lannett takes place successfully.
Agreed. He has some great experience. The next 6 months are absolutely critical and hope he has what it takes to manage us through the big bump that’s coming.
Was before Lannett cancellation. We’ll see what happens to R&D over next couple quarters.
The hype is endless.
The CEO has already had to push back profitability. That is not under promising and over delivering.
No, Elon Musk will not be rolling this into Space X and the assumption of $1B buyout is simply a rumor. No one knows the offer and whether it was even official. Lots of rumors with no substance.
Lots of hype that needs to materialize into substance over time. Growth is good year/year, but it’s the law of small numbers at this point.
Until profitability tracks to expectations and CFP is reached, there are concerns around viability and liquidity. I am expecting a round of equity raise next year will be needed. Cash burn is too high and profitability targets have been pushed out. Stock will get to ans certainly surpass $10, but not in 2022. There are no near term drivers to get us anywhere close to that. They have a good handle on revenue pipeline for the next 6 months so there will be no significant top line surprises.