Elite Pharmaceuticals Inc (ELTP)

[elichen]

If you want enlightenment as to what is actually going on with the company, ask Couch. Meanwhile, checkout this amazing summary of events he recently posted:

10 Reasons Why ELTP as a penny stock just makes dollars and cents: NOW $$$$$$ & ¢¢¢¢¢¢¢

*****Side Note to Potential New Investors: Any way you slice it Elite is a low risk penny stock with the capability of being the illusive 10 bagger from today's current PPS by the end of 2015. And a note of comfort. Even if you buy shares today and Elite never does anything further with its abuse resistant technology (ART), Elite would still be a double bagger from here on its generic products alone. Thus the risk is extremely low and the return is at minimum a 10 bagger if Elite markets that whole line of ART products the COB Jerry Treppel mentioned back in 2012. Good luck and if you have questions ask the board. It is extremely knowledgable about this company and stock. My personal favorite #5: Elite's Intellectual Property Rights!

1) Low debt load, 2) Strong management team, 3) Expanding market share, 4) Growing revenues, 5) Game changing intellectual property rights, 6) Access to financial funding sources, 7) Management with skin in the game, 8) Highly undervalued stock, 9) Expanding Infrastructure, 10) Meeting short, mid and long term objectives.

1) Low Debt Load ~~ $18 million in assets - $23 million in liabilities and we know Novel is worth way more than $3.3 million on the books. I'd say if you include Novel's real value to Elite, Elite would come out at least even.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9782153-927-228722&type=sect&dcn=0001144204-14-008935

2) Strong management team ~~ nobody can say otherwise at this point. Adding Nasrat, Doug Plassche and Barbara Ellison to Elite's management team makes Elite much much stronger than it was a single year ago. It has moved from the bush leagues to the majors IMO. Not to mention all three were hired with the focus of getting Elite's ART to market. Then you add in Ashok Nigalye who is Elite's CSO and Epic's CEO and you get a top notch addition to Elite's management team. His work at Actavis alone stands out. From August 1993 to February 2008, Dr. Nigalaye served as Vice President of Scientific Affairs and Operations of Actavis Totowa LLC, a manufacturer of generic pharmaceuticals, where he was responsible for directing and organizing company activities relating to pharmaceutical drug manufacturing, regulatory affairs and research and development.

http://www.elitepharma.com/investor_relations.asp?goto=361
http://www.elitepharma.com/investor_relations.asp?goto=363
http://www.elitepharma.com/investor_relations.asp?goto=381

3) Expanding Market Share ~~ As Nasrat has discussed publicly Elite has gained access to new API sources for several of their generic products and their Phentermine prices are the lowest on the market. As Carter Ward has explained during several CC's most of Elite's generic products are less than 2 years on the market and they continue to gain market share quarter after quarter. Additionally, the 12 Andas purchased from Mikah will only continue to give Elite access to a broader and stronger commercial base in the generic pharmaceutical market. This can be proven by the numbers increase tied to their revenues.

http://seekingalpha.com/article/2029611-elite-pharmaceuticals-ceo-discusses-f3q2014-results-earnings-call-transcript?uprof=45

4) Growing Revenues ~~ and will only continue with Elites 12 additional Andas
SIX quarters averaging quarterly revenue gains of 93%.

Compare Q2'13 vs Q2'12 Revenue increased +131%
Compare Q3'13 vs Q3'12 Revenue increased +30%
Compare Q4'13 vs Q4'12 Revenue increased +134%
Compare Q1'14 vs Q1'13 Revenue increased +27%
Compare Q2'14 vs Q2'13 Revenue increased +83%
Compare Q3'14 vs Q3'13 Revenue increased +154%

http://finance.yahoo.com/q/sec;_ylt=A0LEV1p7HUtTGnUA.ARXNyoA;_ylu=X3oDMTEzcXRzaTdxBHNlYwNzcgRwb3MDNQRjb2xvA2JmMQR2dGlkA1ZJUDM2NV8x?s=ELTP+SEC+Filings

5) Game Changing Intellectual Property (IP): (And why I am personally here!)

http://seekingalpha.com/instablog/4199131-couch/1941422-elite-pharmaceuticals-eltp-intellectual-property-ip-and-the-right-to-devise-a-better-pain-killer

Elite Pharmaceuticals Expands Abuse Deterrent Technology Patent Portfolio Internationally

http://www.elitepharma.com/investor_relations.asp?goto=379
Quote:

“We are excited to have received this patent in Canada as we continue to broaden our patent protection not only in the United States but also internationally,” stated Nasrat Hakim, President and CEO of Elite. “We will continue to work toward the further expansion of our patent estate in the U.S., Canada and Europe. This patent supports Elite’s initiatives as we develop and file our new abuse deterrent products.”


6) Access to Financial Funding sources to support their signature product line: ART
Acquired $10 million from LPC and would be able to generate another $39.5 million from selling Preferred I shares to a big pharma partner and/or financing partner if the Proxy Vote passes. And TODAY we find out Elite garners another $40 million in funds from LPC at no upper limits to pay for shares!!

http://www.streetinsider.com/Press+Releases/Elite+Pharmaceuticals,+Inc.+Secures+Funding+Commitment+of+Up+to+$40+Million+From+Lincoln+Park+Capital+Fund,+LLC/9376047.html

http://www.elitepharma.com/investor_relations.asp?goto=356

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D14%2D006951%2Etxt&FilePath=%5C2014%5C02%5C07%5C&CoName=ELITE+PHARMACEUTICALS+INC+%2FNV%2F&FormType=8%2DK&RcvdDate=2%2F7%2F2014&pdf=


7) Management with a lot of their own Skin in the Game!
Both Nasrat Hakim and Jerry Treppel own a large number of common shares and have loaned the company $1 million dollars unsecured. Nasrat owns around 154 million shares after the Preferred I shares and around 14 million besides the Preferred shares. I think JT owns somewhere around 8-10 million shares.

http://www.elitepharma.com/investor_relations.asp?goto=351
http://www.elitepharma.com/investor_relations.asp?goto=368

8) Highly undervalued stock particularly with their IP Rights.
One can see this by Elite adding in their poison pill policy/stockholder rights plan and having a prominent consulting firm give a valuation estimation with a conservative, most likely and best case valuation. That’s $0.40, $2.10 and $2.75. So even with Elite's worst case conservative scenario, I would argue Elite is still highly undervalued. Elite launches just one ART product even with the increase in AS and Elite would still be looking at around a $3 PPS if not more on the expectation of future ART products.

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D13%2D062436%2Etxt&FilePath=%5C2013%5C11%5C15%5C&CoName=ELITE+PHARMACEUTICALS+INC+%2FNV%2F&FormType=8%2DA12G&RcvdDate=11%2F15%2F2013&pdf=

9) Expanded Infrastructure:
A few years back Elite expanded its GMP and DEA registered facility for research, development, and manufacturing from 15 thousand to 30 thousand square feet and added machinery for packaging as well. It further bought equipment recently so Elite could manufacture Isradipine itself as opposed to having Epic perform this work. Thus, Elite gets a cut of the manufacturing revenues. Additionally, Elite has hired several new key employees and introduced new products as mentioned. From 0 products on the market in 2011 to 8 currently to 16 employees to now 33. However, the real piece of good news here is that Elite has been using its expanded equipment line for the number of batches manufactured and stability tests run in regard to its ART products and is on schedule to submit its first NDA to the FDA by the end of the year.

http://www.elitepharma.com/investor_relations.asp?goto=354

10) Meeting its short, mid and long term objectives:
One would have to go back to 2009 when Elite delisted from the Amex and JT secured a strategic alliance with Epic for $3.75 million dollars and thus staving off bankruptcy to understand how far Elite has come in such a short time. At that time, Elite used this money to buy several Andas such as hydromorphone, Naltrexone and Phentermine that Elite currently markets. Additionally, as mentioned, Elite obtained key US and Canadian patents related to its abuse resistant technology, doubled the size of its manufacturing space and obtained funding from LPC to move forward with its pivotal BE ART studies after a 7 year hiatus. Further, Elite hired Nasrat Hakim as its CEO and re-initiated attending the Rodman & Renshaw financial conference in NYC after a 6 year hiatus. To me, this signaled to institutional investors that Elite is once again a viable stock and company and to place Elite on their radars. In essence, Elite has something worthwhile to show potential new investors. That it is moving towards becoming cash flow positive off both operations and soon R&D costs but most importantly it plans to launch its first ART product in 2015.

http://www.elitepharma.com/investor_relations.asp?goto=365

There is also this great update on studies:

ELI-200: Undisclosed Abuse Deterrent opioid (most likely is Morphine/Naltrexone better EMBEDA). BE study done and good excellent result. Even though this was second BE study but first pivotal BE study but will be first NDA to be filed with FDA in 2014. Life Tree Abuse studies have been initiated have most likely finished with dosing. Results to follow in a month? 45 days?.

ELI-201: Oxycodone/Naltrexone twice-daily with ART/ADT.pilot BE Study done and good excellent result. Will be filed NDA with FDA in 2014 Nasrat has said he will file one NDA this year so early filing for 201 should not be expected, but it is not impossible or early 2015. Three different twice daily formulations developed by Elite were tested in the study. This is generic of OxyContin. Pivotal BE studies began July 15. Results by end of September.

ELI-202: Hydrocodone/Naltrexone twice-daily with ART/ADT. BE study results due any day now.

ELI-216: Oxycodone/Naltrexone once-daily with ART/ADT.BE studies to be initiated some time in 2014.

ELI-154: Oxycodone once-daily ER with no ART/ADT , scale up at Elite for a $ 400 million dollar market in Europe.Perhaps an update at the next CC, in two weeks.