Hey Maz, did you notice?
As per usual, record revenues leads to massive selling. What was interesting, in a nauseating sort of way, was that long-term investors were on the call and “others” were selling. Nasrat’s point about this typical manipulation is the impetus to get off the OTC, onto the Nasdaq, and have the p/s supported by real fundamentals and investment houses that are currently unable to invest in an OTC company. They have a plan for this and I suspect most of the air on the board will be taken up with the noise about the p/s. But that misses the big points. So, here are a few (I take notes, so never doubt me – just like when I said the language on filing the NDA was unclear, but I digress. Besides, happily, Nasrat put that to rest)...
Record revenues. But, wait, do they really matter or is it just about the p/s? After all, so many pharma & biotech firms have no revenues, big debt, but a higher share price. What's up with that? Well, that is about speculation. And, speaking about speculation, the last convoluted question on the CC that began with arguing that the reason the p/s is low is that the company was reporting a loss clearly missed the discussion about the R&D vs. revenues offset. I suppose it is just another example of when using a cell phone game app can cause a lapse in attention.
The FDA, according to Nasrat, has “granted expedited review” to Elite; his words not mine. And, that means a six-month time frame to approval from the point of the FDA accepting the filing. This is important. With Elite filing before end of the calendar year (the common Gregorian calendar that ends on December 31st), Nasrat said he thought an acceptance by the FDA would be in January (a difference in two or three weeks, but not material and Nasrat cannot control the time taken by the FDA). If that time frame holds, it would mean approval should be expected by end July 2016; again Nasrat’s words. In my words, it does not mean approval could not be sooner.
But, what makes the CC even more intriguing, if you followed the discussion, was the clarity of Elite’s strategic plan. This may be the most significant factor providing evidence of their game plan for success. What might that be? Glad you asked Dave; I mean Maz…
Working closely with Epic (as was stated in the CC), there is an effort to identify large pharmacies and pain med doctors in specific geographic areas. This focused effort enables greater product penetration to a targeted patient population selected based on data analysis. If not, it would be folly to expect to throw product into retail locations all over the country and expect success. Success is planned and we outsiders do not see the plan until it is executed, then we see what was shown in yesterday's 10Q and expanded on in this CC - increasing revenues. Adding to Elite's strategic plan is the decision to have multiple dosages, which allows greater choices to an expanded patient population. Smart. This is a lesson businesses from retail to manufacturing to services firms know and it is simple in its understanding - you identify the best geographic locations to enter the market because it reduces risk and offers greater opportunity for market penetration, due to an established base.
In sum, there is only a positive picture of the fundamentals and their strategic plan. Elite is moving forward and the action on the p/s has absolutely nothing to do with its success. PERIOD.
