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What testing is that? Mouse studies only so far. GNBT has yet to submit an IND to the FDA for human studies. The so co-called Complete Vaccine has not seen a single human arm. "Stringent" is not a synonym for "nonexistent" or "very far behind."
Why would long term studies be helpful to find an adverse reaction that occurs in the first 2 weeks? How many people would need to be enrolled in a study to find an adverse reaction that occurs 6 times in 7 million vaccinations? How many fatalities and downstream infections will be prevented by those 7 million vaccinations?
In the Mikah shenanigans, Carter always signed on behalf of Elite while Nasrat signed on behalf of Mikah. Both men had a fiduciary duty to Elite shareholders.
Another long finds the exit. I believe the rule is that after six months he no longer has to report ELTP transactions to the SEC, so assuming he holds until end of 2021, then we will not ever see when he sells off his ~3.3M shares. He had some warrants at one point, but I'm not sure if any are still active or what the strike price is.
Both Norco and Percocet were approved in 2018, more than 2.5 years ago. Those two drugs could have easily done $20M/year each. Add in the methadone and hydromorphone kicker, and "we very well could have $100 million in revenue by now." Of course, as your post rightly points out, Nasrat and team have come up lame in capturing Adderall market share, so shareholders are ultimately left to guess what kind of revenue return we might have received for the substantial dilution we suffered to develop all the drugs in the opioid bucket.
The logic of this argument falls in on itself. What dumbass lawyer would sue a company in such dire financial shape that it would immediately result in the end of operations? What would be the point of that? And once again I will ask, for what reason would they be sued? What did they do? Feel free to review in the FDA Orange Book the many companies who still enjoy excellent revenue from their opioid ANDA's without ever being sued for it.
This was a business that was labeled a "going concern" by their auditor because of their lack of revenue, and the CEO sold off their greatest revenue-generating assets in an attempt to decrease an already extremely low risk of opioid litigation. There is no such thing as zero risk. Who would you rather have as the CEO- the guy who panics at low risk and dumps the most valuable assets in the history of the company, or the guy who picked them up for a tiny fraction of their development cost? Even if he chooses to just hold them for now, would you rather have the guy who is looking 2-3 years down the road or the guy who constantly "pivots" from one strategy to another, never delivering what he promises for any of them? Shareholders have learned that when Nasrat talks about buckets, then they should get their shovels. The crap from him just keeps getting deeper and deeper.
Where this post fails in sarcasm, it succeeds in irony. The sad fact is that had Norco and Percocet been commercialized in a timely fashion, we very well could have $100 million in revenue by now. Likewise, it is extremely unlikely Elite would have been sued, just like every other small to mid-size generic pharma who continue to manufacture and sell opioid products in a highly-regulated market.
Adderall XR was approved in 2019. The pipeline isn't even growing each year. The only thing growing each day at Elite is Nasrat's share count. Every single day he adds 25,000+ shares to his total.
First of all, the so-called poison pill only applies to shareholders of record on 11/15/13, so a vast majority of currently outstanding shares are not covered by the poison pill, including most of Nasrat's shares. The poison pill no longer has the teeth to do anything at this point. But beyond that, the poison pill was only designed to fend off a hostile takeover. It must be triggered by the BOD, so citing the poison pill as a reason not to worry about an insider takeover by the CEO is, frankly, dumb.
The SequestOx development project is paused at >90% complete, but it is not expected to move forward until the company is under the private ownership of the CEO and his associates.
Thanks for the correction, Pentacle. I forgot all about the 2019 meeting. I notice that it was just a few weeks after he sold out the Norco, Percocet, and other opioids to Nostrum. I'm wondering if his appearance or demeanor gave any indication that he had just dumped the most valuable assets in the history of the company for pennies on the dollar?
I appreciate the sincerity of your response. In my experience, a person's actions are a more reliable indicator than their words or appearance. As a co-shareholder since that time, I would remind everyone that the meeting was more than a "couple years ago." The meeting was in May 2014, nearly seven years ago. Here's what he said in the following PR:
No matter his motivation, after seven years, he has fundamentally failed at his primary objective.
Not sure what you're getting at. Add up Nasrat's hundreds of millions of shares with Epic's boatloads of shares and they already control a full vote of shareholders. It might be close today for an unpopular proposal, but in a few years it will not even be close. Nasrat is perfectly happy to just keep kicking the can the down the road, collecting CRL's, dumping ANDA's, making promises, upgrading his facility, spending R&D money for his secret pipeline, and accumulating ownership at a rate of more than 10,000,000 shares/year.
So go ahead and continue to praise the brilliant job Nasrat is doing for a little longer and then we'll see who's laughing. (Hint: initials are NH.)
Anyone can answer. What challenges has Nasrat Hakim dealt with in 8 years as CEO of Elite that were not the direct result of his own management decisions?
I'm still here because I'm too stubborn to let the cabal have my shares. I don't mind losing a bet at the casino, but I'm sure as hell going to call it out when I see the dealer cheating.
Yup, we're all keeping these common shares warm & dry until Nasrat is ready for them. I've heard that when the big day arrives, we will all get a visit from the Nasrat Fairy. If we put our shares under our pillows, when we wake up the shares will be gone, and a few shiny coins will be left behind.
This gets it partially correct. Nasrat is perfectly happy to sit back and accumulate his shares at this level. Why would he want the share price to increase? The lower the share price, the more shares he pockets. It is in his direct financial interest to keep the share price in single digits, whatever he needs to do to keep it there. (Hi Nostrum! How are our opioid ANDA's?) When it comes to promoting the interests of shareholders vs. promoting his own financial interests, Nasrat Hakim has a thorough history of choosing himself (Hi Mikah! How do like our Adderall? I bet you like our Adderall more than we like your trimipramine.)
I thought it was cute in the last conference call how Nasrat and Carter tried to play dumb about how many shares are currently owed to Nasrat. Maybe that's true, but I doubt it. What is definitely true is that they do not want the shareholders to know how many shares that he now owns and controls. I would say it is easily at least another 100 million shares and maybe closer to 200 million and above. For all the shenanigans we know about, consider how many we don't. And this is where the post gets it wrong. What's good for him is not necessarily good for us. 5 cents x 400 million shares is a very nice retirement for a mid-level QC guy from Actavis. But what jour trader said the other day is equally possible, probably more likely. Once he has enough shares, in conjunction with his cabal, he could move to take the company private. BOD votes to force all common shareholders to sell their shares to Nasrat for whatever price he says (please not 2 cents please not 2 cents please not 2 cents). Ultimately, the cabal controls the vote, and common shareholders like us would have no real say when our shares are taken away in exchange for a tiny payoff.
Meanwhile, watch for Nasrat to continue to upgrade his future private facility with current shareholder capital, while he continues to do absolutely nothing to make the share price increase. The Adderall ANDA's should be very, very careful. If they start bringing in too much revenue then they're going to be sold off to Nostrum**, where risky ANDA's go to make money. I mean you never know when some kid might fail a math test and sue the generic pharma that made his Adderall. Just too risky.
Right, we shouldn't utilize known facts to analyze a company's performance. Hold on while I consult my stock chart for the latest doji indicating a near term breakout from our eight year resistance.
How does this dispute what I am saying? At 6 cents, Nasrat gets more than 10 million shares/year just for his salary and interest on trimipramine. We don't know the details of how the company pays Mikah for its cut of Adderall sales, but suffice it to say, I'm sure the tab is running and will be paid in shares. If the ELTP share price doubles, then he gets half as many shares. It is definitely in his personal interest to keep the share price in single digits, and his actions bely his true intentions.
I recognize that I could be wrong about this. It could be that his seven years of disappointing performance and unending string of failures are only indicative of gross incompetence.
This is not going above single digits until the cabal says so. Until then, you will continue to see what you have seen for the past 7+ years. Everything happens in slow motion. Work that should take 30 days takes 6 months. CRL's abound and responses delayed. Nasrat acquiring personal ownership of company assets. CEO self-dealing and selling off Elite assets for unjustifiable reasons to friends and cohorts of Mikah and Epic. Nasrat has a never-ending capacity to surprise us, just not in a good way.
Do you mean the opioid lawsuits that started in 2004? LOL by 2007 Purdue had been sued by 30 states and had already settled with the feds over OxyContin misbranding. The opioid lawsuits were in full swing by the time Elite started selling hydromorphone, and many had already been settled by the time Nasrat submitted applications for Percocet and Norco. There are still dozens of manufacturers enjoying the benefits of their opioid ANDA's without interruption, and they have never been sued because they have never acted egregiously or illegally. And what dufus attorney would sue Elite anyways? It took the company 30 years to make $5 million. Some deep pockets there. Only one lawyer America thinks that is a financially feasible proposition, and his name is Nasrat. The rest of them know better.
Luckily, as a sentient being, I am able to acquire knowledge and apply logic. It doesn't take much of either to realize the opioid lawsuits had nothing to do with why Nasrat sold us out.
Sorry dude that post was from 2019 before it was revealed that Nasrat had sold out shareholders by dumping the opioids for pennies on the dollar to his buddies at Nostrum. The $3 tranche is now on sale at 30 cents, and the $5 tranche is for sale at 50 cents each. I have revised the timeline for a buyout from 5 years to 50 years. GLTA.
Remember, Nasrat is a member of Epic Investments, and he was brought to Elite when it was controlled by 3 members of Epic sitting on the Elite BOD. It was this same Epic-controlled BOD that decided to give Nasrat $10 million for his 13 generic ANDA's. Shareholders didn't even know what the 13 ANDA's were, as 10 of them were initially kept secret. Within weeks the supply and licensing agreement with Epic was signed, and it served to provide legitimacy to the $10M deal. As time went on and nothing happened, Nasrat could play the victim and act like it was all up to the guys at Epic and completely out of his control. In my opinion, the whole deal was a sham from the start. I don't believe Epic ever intended to market any of those drugs- the only intention was to make it look like the 13 ANDA's had real value when actually it was an assortment of odd lot misfit ANDA's that are nearly worthless, then and now.
Nasrat pretty obviously was in on it from the start, and we know this because of how he handled isradipine, which was his baby. Isradipine is the reason he brought in Doug Plassche, who had previous manufacturing experience with this specific finicky drug. Of all the original 13, Nasrat knew isradipine was the only one with any potential, and he made it clear early on that isradipine would be manufactured at the Northvale plant and not by Epic. He knew isradipine was the only one worth a crap, and it was the only one he didn't send to be quarantined by his partners at Epic.
By the time we realized 5 of the 13 ANDA's were for the same rarely used drug that we already owned (phentermine) and the others weren't much better, Nasrat was ensconced on his quarter billion share throne. It wasn't long before he scrounged the trimipramine ANDA from the leftover bin of the Actavis divestiture. He laundered it through a supposedly wound-down Mikah, so again shareholders are kept in the dark as more and more shares are funneled from the treasury every month to pay interest to Mikah for a worthless drug.
In the 7+ years since we "merged" with Mikah and acquired the 13 ANDA's, only isradipine, dantrolene, and loxapine have been added to the products page. Dantrolene wasn't until 2019, and loxapine still has not shipped. That's what we got for our $10 million, and it was Nasrat's partners at Epic that signed the check.
This is close to how I see it, except the current board members are just compliant puppies, not principals. Nasrat was installed by the former board members from Epic, and he is a member of Epic Investments (so is Carter Ward, according to Dianne Will). In my opinion, this cabal and their New Jersey pharma bros (i.e. Nostrum) will use whatever tactics are necessary to extract value from the company and keep the share price in the single digits as they continue to accumulate their ownership. It's the ludicrosity of the tactics that makes the plan so obvious: Epic sitting on the generics for years; dumping the brand new opioids for pennies; quitting SequestOx at the finish line in order to forsake the 2 bead system; paying Nasrat millions of shares every year **just for the interest payments** on his yard sale loser trimipramine.
The cabal has zero concern for common shareholders, other than trying to shake loose their shares. The hope is that at some point they will have their bellies full of free and five cent shares and will decide to let the thing run a little before selling it off. Until then, Nasrat will continue to use Mikah as a blunt force weapon against common shareholders, maybe for as long as he is allowed, probably for as long as shareholders continue to let him.
I know, right? Words are fun. Sophistry. It sounds technical and true, but really it's just a fancier grade of bullshit. I will admit, however, that my phrase "business school sophistry" may be a little redundant.
All of my posts are grounded business discussions of Elite. Ama's specific request is that I give my opinion about the future 12 months, instead of incisively dissecting managements' repeated past failures, which have never been ably rebutted. Apparently there is a hunger for pragmatic analysis that isn't a bunch of fanciful formulas and business school sophistry that has never proven to be useful or correct. Stay tuned.... I'm currently very busy running a business.
I might consider sharing my post-doctoral level analysis of Elite over the next 12 months, but certainly not before the snupdawg diamond hands post is made a sticky.
SequestOx development is the only thing that ever caused this stock to have any sustained upward movement. (Besides Lodrane D, I mean.) Maybe we could even finish the project this time.
Maybe we could get a quick and easy NDA approval for an abuse-deterrent version of the immediate-release drug, as a proof of concept. Hmmm. Where have I heard this before?
I know what many are thinking: "Hey, an inert hard shell, that sounds like something so simple that not even Nasrat could manage to screw it up." Not true at all. It was the PEG-based hard shell that was implicated in the Opana disaster. Turns out the molecular weight and cross-linking of the PEG molecules is quite finicky. Abusers very quickly figured out that with a few extra steps the ADF Opana was nicely injectable. The process required tools like steel wool that tended to be used over & over, which led to multiple clusters of viral outbreaks, including HIV and Hep C. Illicit injection of Opana has also been linked to an acquired lupus-like autoimmune condition in several people.
Combining the extended release formula and the PEG-based hard shell to form a safe and effective ADF is no slam dunk, especially for a company that failed in 2 tries to get FDA approval for a simple oxyIR bead.