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I could not find any "buyback" clauses in this contract.
Maybe Nostrum had too much legal troubles to risk commercializing these products and just agreed to sell it back. You would still think they would get some sort of premium though. No idea.
yep, missed that thanks
Nice I guess they have decided they are comfortable selling Norco finally and are buying it back. Maybe Percocet is next.
$59,000,000
Sure, but I think debt owed to and subsequently paid to Mikah for Adderall profit splits would come out as an expense in that quarter they were paid.
Therefore if paid in Q4 it would impact full year profit numbers. I've brought this up before and would love to be wrong about it, who knows maybe it already is factored into revenue and profit numbers previously reported but I would doubt it.
Thanks though, your input is always very helpful.
I love how someone who literally is claiming to have taken out a credit card advance to buy stock is calling other people clowns.
Friend, I don't know what your agenda is, but borrowing money from credit card company's never makes you look savy...
Perhaps. But we do not KNOW this for sure.
It would not surprise me if year end does not have a profit on an annualized basis because Elite has these debts to pay off, but also more so because Mikah needs to be paid for half of Adderall profits. Which I don't think was factored into quarterly numbers. Personally I wouldn't be surprised for a quarterly revenue over 20 which would put annual into almost 60.
Great input, thanks.
You think this next reported quarter will be lower revenue than the previous?
An Oxycontin tentative approval next week would be worth more than the entire current market cap.
OK not gonna lie I have not been keeping up with this whole thread, but IMO you are entirely correct and we will see that in year end financials.
Any understanding of financial statements would prove you are correct, especially given that Mikah's half of Adderalls needs to be paid.
Any company in rapid growth does not produce profit, as all "would be" profits are reinvested into growth.
I have no doubt elite will achieve over 1 dollar a share, or over one billion in market cap, but to imply they are currently cash flow positive is simply a lie. As a 15 year shareholder, I feel fortunate that growth is funded entirely by "would be" profits and not by dilution ever.
Very confident in my investment.
Yes definitely the antimetabolite. Elite pr'd this at a 42 million market.
I was thrown off by the market size discrepancy. This was actually rather simple. Ignore my other posts
I'm glad to be wrong about this.
This would have to be the first time in 15 years that an approval would come completely out of the blue. They always have issued a pr for positive phase 3 studies and fda filing. Don't know what to make of this but look forward to clarification Monday. Who knows, this might actually be ELTP.
Though it'd kind of look bad, since Nasrat stated multiple times in past CC's that there were no drugs meeting milestones that would go not communicated.
Guess we will see soon.
Great News! I was wrong.
The other company was "Elite Pharma".
Elite Laboratories is ELTP.
https://elite.irpass.com/Elite-Pharmaceuticals-Inc-Issues-Statement-on-Product-Approval-Listing-11-24-2020
Years ago there was unexpected approval in the orange book and elite put on a pr saying it was not them. I know it sounds strange, but I think that other company was "elite laboratories", meaning this approval was probably not for ELTP.
It was tremendously confusing at the time.
Indemnification is completely standard.
There's no question this filing is in anticipation of some M/A activity which could still be years away.
Nasrat did say he would update shareholders on his plans in the June update, implying there may be something to talk about at that point.
This is definitely house cleaning for some sort of buy out or M/A. Seen this before. Early stages.
All these shares were already known to anyone reading the quarterly filing. It is absolutely not new dilution.
I don't love that they chose to file this after hours going into a long weekend though. Reminds me of Sequestox CRL being filed after hours Friday. Makes it seem like they expect a bad market reaction from this.
oh I know, I was being sarcastic in responding to that valuation along with you.
So funny.
If Mikah's half is worth .30 then why is Elite's half plus the rest of the business only worth .16. lol lol don't actually answer that. Mikah's half of Adderall is not worth 300 million.
I will speculate though, that 2 quarters of Mikah's profit splits were valued at about 3 million judging from the liability accrual 2 quarters ago. (no idea why it stayed at 3 million this past quarter, maybe they made some payments) So tack on full year and give multiple of 3 and it would take something like 18 million for Elite to buy Mikah's half.
Who knows really though, those profit split accruals are not very straight forward at all.
Something I've been wondering though, Mikah may now get a much larger percentage of total profits. Not only because Lannet does not take a cut but more specifically because revenue is no longer broken down into contract manufacturing and license fees (going forward). I certainly hope Elite keeps a significantly larger portion than Mikah for doing the manufacturing and does not split it down the line after cost. With Lanett they had a cost-plus agreement but now who knows.
haha yes, I agree.
I was at odds with myself with how little I cared about the action last week. Have learned to take a beating.
I'm honestly surprised this was the first major beating this stock has taken since the run began in August.
Company is in a verified rapid growth phase and is literally trading with a negative growth valuation after last week. Its hilarious frankly how little sense it makes.
It got as low as .126 intraday.
Many would consider that filled.
19$ just moved the market cap down by 8.4 million dollars.
.1899 to .1816 on exactly 100 shares.
"And I got a lot of questions, and the answer to the question is, yes, Prasco shipment made in December is included in the revenue numbers." - Carter Ward
It will almost certainly pick up in volume substantially though
"they are a good partner. Prasco has been a very good partner. They have just started transition to us as a supplier, and they are doing very well" - NH
"What would Mr. Hakim say is the likelihood that Elite will uplift to NASDAQ within the next five years? What would Mr. Hakim say is the likelihood that Elite will get bought out by a large arrival within the next five years?"
"Two things I'll say to that. One, cut that prediction in half or more than half. Five years is a very long time to do either. We are at a point where our fundamentals are solid, and we are in a growth stage, as I said earlier. We're not flattening out at $30 million and $40 million. We skip the 40s, went to 50s. And we'll talk in June once I have a little more data, what I expect for the future. But definitely, the year after, we're going to beat that. And the year after, we're going to be that. So we're at a growth stage. So the fundamentals are looking great, a buyout is looking great. And five years is way too long for that. So I would say either of this will happen in a couple of years." - CEO N.H
The first Prasco shipment revenue was included in yesterday's revenue. They specified that the launch did not happen until January though. So future volume should be higher.
They were adamant that all products were seeing increases and that sales were not flattening.
Purdue litigation was expected and business as usual.
Only guidance given was that full fiscal year revenue will be over 50 million.
4 products under fda review.
Multiple products under r and d but only pr them when/if they pass BE study.
Company is in rapid growth phase.
Facilty expansion going well. Will be good for 5 years.
Someone asked if Nasrat thinks there be Nasdaq uplifting or buyout in 5 years. He said cut that number in half. He seemed pretty confident about this. My opinion but he seemed to have more emphasis when he said "buyout is looking good"
The first Prasco shipment revenue was included in yesterday's revenue. They specified that the launch did not happen until January though. So future volume should be higher.
They were adamant that all products were seeing increases and that sales were not flattening.
Purdue litigation was expected and business as usual.
Only guidance given was that full fiscal year revenue will be over 50 million.
4 products under fda review.
Multiple products under r and d but only pr them when/if they pass BE study.
Company is in rapid growth phase.
Facilty expansion going well. Will be good for 5 years.
Someone asked if Nasrat thinks there be Nasdaq uplifting or buyout in 5 years. He said cut that number in half. He seemed pretty confident about this. My opinion but he seemed to have more emphasis when he said "buyout is looking good"
It was already accounted for in the revenue but it was not paid out yet.
It is a lagging indication of sales growth
I'm pretty sure the amount in the AR was already included in the revenue amount for the quarter. It's recognized at point of sale for reporting purposes and AR is credited at that time. When it is paid and the money comes in AR is debited and cash is credited resulting in a balance sheet adjustment, but these previous sales have no impact on future income statements.
I think it shows a longer time to getting paid from sales than under Lanett and really is a lagging indicator of revenue growth already reported.
Accounts receivable is at 16 million
18,000,000
Sure but I'd still presume they would recognize the revenue in the quarter the product was delivered, even if its still on Accounts payable on balance sheet, and not yet physically paid.
I remember years ago Lanett Adderall launch quantities were recorded in the quarter before Lanett began sales, and they were substantial.
This situation with Prasco is similar except that elite will only be receiving the contract manufacturing fees from Prasco and not license fees or profit splits on the back end, and still they were paid on delivery even then.
I cannot imagine Elite would be willing to ship product to Prasco without being paid on delivery. That would be millions in interest free loans. Why would they need to wait until Prasco launches to get paid? This is contract manufacturing, not a profit split situation. They get paid for the product they deliver.
I think it is almost a sure thing that launch quantity revenue will be reported tomorrow.
Nasrat did say a few calls ago that it would the third quarter of selling under Kirkov that would show the most growth.
Nasrat said in the cc before the oxycodone filing that he expected this to happen. It was accounted for in the decision to continue forward with the filing and planned for. The fact that this has not even been 8k'd means it's not even a material event at the moment.
Most likely it is this. Sometimes it could mean the two parties have reached an agreement but more than likely they are waiting on the appellate decision.
3 or 4 calls ago, Nasrat said that it would be the third quarter of sales under Kirkov that would show the highest growth. That is this coming quarter financials being reported in a month. This together with nearly a month of selling to Prascoe, its not hard to speculate going well above the previous quarter's 14.2 M.
I think 20M reported in Feb is not out of the question. Over 100M for the calendar year 2024 would be my guess.
After holding this stock through nearly 15 years it seems almost unreal to even say that and believe it, but its very feasible.
I think so too. They were the authorized generic so they could very well have an above average market share.
Prasco deal alone could produce more revenue than the entire Lannett deal. At least more than Lannett was getting for XR.
So was low of day .126 close enough to consider the gap from .123 closed?
No need for name calling.
Is this a preschool
Why are you making racist comments about Indian call centers and calling people liars.
I am guessing that your game here to make irrelevant comments and logical fallacies until everyone forgets what this conversation was even about.
Honestly, the back and forth discussion here is so odd, its like no one reads the other person's comments but immediately calls them liars and morons and then go on some copy and paste rant about monsters coming.