http://www.smallcapnetwork.com/A-Little-Funding-Goes-a-Long-Way-in-Relieving-Anxiety-OTC-ELTP/s/via/14/article/view/p/mid/1/id/469/
A Little Funding Goes a Long Way in Relieving Anxiety (OTC:ELTP)
Oral Sustained and Controlled Release Products are the Way to Go…
By Dennis Askew
Published: January 3, 2012 11:01:40 AM PST
The management at Elite Pharmaceuticals, Inc. (OTC:ELTP) made a very smart move in my opinion that was announced by the Company today and aggregating shareholders and new buyers of the stock apparently thought so as well with the stock posting a healthy gain on the news. It is currently trading in the $0.09 range.
What management did was avoid shareholder dilution, dodge expensive lending interest, and work out a deal with Socius Capital Group to sell up to $5 million of non-convertible Series F Preferred Stock over a two year period.
The money, to be given at different times, will give the drug maker a little breathing room. That’s Good.
This from the CEO… “With the completion of this transaction, for the first time in a long time, management believes that it can focus its time on growing the company and enhancing shareholder value without having to expend an inordinate amount of time contemplating where the capital required for growth will come from”, said ELTP’s CEO Jerry Treppel. “We believe this financing arrangement will help resolve that issue.”
It’s hard for management teams to focus on product development and sales when the CFO is constantly knocking on the CEO’s door.
Elite Pharmaceuticals is known around the industry for its abuse deterrent technology and oral sustained and controlled release products that it is developing into generic versions. Elite has four ANDA products partnered with TAGI Pharma; one launched, two in the process of a manufacturing site transfer and another under review by the FDA. The Company has two products: Lodrane 24 and Lodrane 24D, being sold commercially. It also has an approved generic methadone product developed with one of its partners.
The Company’s lead pipeline products, ELI-216, a once-daily abuse resistant oxycodone, and ELI-154, a once-daily oxycodone, are novel sustained release oral formulations of opioids for the treatment of chronic pain, which address two of the limitations of existing oral opioids: the provision of consistent relief of baseline pain levels and deterrence of potential abuse.
ELTP’s two once-daily allergy products, Lodrane 24 and Lodrane 24D, that were co-developed with its partner, ECR Pharmaceuticals (ECR). The products are being marketed by ECR. Elite’s revenues for manufacturing these products and a royalty on sales for the fiscal year ended March 31, 2010 (fiscal 2010), aggregated $3,339,870. That subsequently makes the YOY quarter seem a disaster; but it wasn’t, just no big royalties.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.
News 
Market Data 
Discover 
AI
