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Nasrat dreams the same, but wakes up to the reality of the situation.
I didn’t misunderstand at all. I know very well there are multiple ways to value a company and determine if the buyout price is at a premium to the current market cap, hence buying at a premium. Market value vs market cap.
Stock market could have stock price woefully overinflated as well that would only be found out during an acquisition and stock price would therefore tank, offering the buyer a discount to the current market cap.
Oh and SequestOx at this time isn’t being pursued as announced by the CEO. A shelved idea after millions spent is just a sunk cost.
Elite doesn’t even know if it has any value hence the testing to validate. There is no surprise monster lurking unless you are referring to Mikah and the Adderall profits.
And what would warrant a buyout premium from Elite being a generic manufacturing company in competitive markets with nothing unique? No sprinkles or chocolate dipping to hide the plain vanilla.
I will hand it to them that they are finally CFP and hopefully this Q for the 4th straight time. The continual reinventing of the company is clearly a sign of circuitous paths without clear strategic direction.
Could get a 20% premium on crap, which is still, you know, crap.
Nasrat thought he was getting a great deal when Lannett’s back was against the wall after they lost exclusive partnership with JSP and their revenue took a big hit and stock price tanked 60%. What Nasrat didn’t think about was that the other CNS drug has far fewer competitors and is a bigger market. Much easier choice for Lannett. Nasrat could have gone with a larger organization as he said, but chose against it to get this deal with Lannett. He should seriously think about writing a sequel to the Art of the Deal. Dr Reddy, Sungen, Mikah resurrection, Lannett, etc. Book would be thrilling to read. :D
Lannett has a blockbuster CNS drug that Elite does not have. That is clearly Lannett’s primary CNS focus.
$1-2B based on what?!
Their current sales or profitability don’t warrant anything close to that. Their pipeline is virtually non-existent.
He did say “meaningful”. Lol
That response alone draws much bigger questions and concerns.
To get more from a $5M market than a billion dollar market is a failure to execute.
Why would a $5M drug with other competitors move the stock?
I agree with your comments here. Also think there is a risk play here by Nasrat. He has failed multiple times so far. This way, if LePree screws up in his pipeline assessment & strategy execution, Nasrat can pass the buck and not make it look like he screwed up yet again.
Why expect otherwise?
Company is in rebuilding mode again. No details on pipeline yet (assuming we will hear more next cc end of June/early Jul).
Where there is no communicated plan, there is uncertainty and the stock price will naturally show that lack of confidence.
Boilerplate CYA Safe Harbor language.
And Dr Reddy, and opioid strategy, and methadone, and Sungen relationship. This isn’t a big company for the sheer number of failures.
When SequestOx failed...I’ll leave it at that.
Except it hasn’t just been a year of a depressed stock price. It’s been 8. That theory is missing realism.
That’s not exactly accurate. When the CEO stops getting paid in shares and he says no more dilution (not just when the share price is low) is when dilution will stop. Until then we have a Charlie Brown cloud that follows us wherever Nasrat goeth.
Takes a while to create a new vision, prioritize and start studies/testing. Last cc he did say testing will start within matter of weeks. There should be an update by next cc, especially regarding whether they are even moving forward with next Adderall product. I could also see the path of no update at time of cc and then product failure shortly thereafter so it doesn’t need to be addressed during the call. Hopefully not the case.
Yes, absolutely. They provide updates on study results. If there are no study results provided, there certainly is no secret filing.
Why would you think they are not? Usually contracts are multi-year unless there was a force majeure situation that wasn’t fixed - highly unlikely.
Bona fide offers must be communicated to shareholders. There was never any real offer.
Elite Pharma investors like having a hammered bottom on a regular basis.
SequestOx got flushed along with the rest of the opioids. 3-prong vision went to the wayside with Sungen. We did escape with some of the Adderall along with Mikah and become CFP for a few quarters. He has to divulge a strategy/vision. Leading a company via throwing Hail Mary passes only gets you so far as we’ve seen over the last 8 years.
A PR won’t keep the share price up. Getting on to a real exchange with fund & larger investor ownership will move the needle, but we’re not anywhere near that. Nasrat’s 3rd vision for the company is forthcoming.
Don’t ask for that. Every time he does, stock drifts lower. :D
I think having a sales/marketing distributor is by far the best option here until Elite becomes much larger. I have seen small companies jump the gun and build out their own sales team and fail miserably in the highly competitive pharma markets. Plus, building out sales staff is cash intensive and payback comes down the road. We don’t have that luxury and isn’t worth pursuing yet.
Depends what source you look at. D&B says around 25M, but their reporting is pretty bad for publicly held companies let alone private. I’m guessing it’s multiple times larger than Elite.
Who has more revenue, Elite or Prasco? :)
Going with a tiny company as sales/distribution partner may be wise as they may be hungry for a little bit more revenue.
Both have errors. This must have been the big website update since Sungen relationship ended long ago. They are finally updating their website with that news.
Should we be excited about the 404 error on the codevelopment page?
No, this is not common for a public company to communicate when their website is down. In fact, I have never once heard of this happening before.
Then that is your choice. This is just the host’s standard page for when work is being done.
No CEO would ever tell investors the site is going down. That is ridiculous. Since when do investors and potential investors get involved in making every day decision making? They don’t.
They would release an 8-k for the launch, but don’t always do it for CRLs that would be worth many multiples of Loxapine if approved.
This is simply the host’s standard page that website updates are taking place. Maybe huge news on Loxapine? :)
From Mikah?
From Milan? Lol