Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Thanks for asking. Here are my thoughts...

Hiring Eugene is pure genius and, to my mind, very strategic and in keeping with the expectations of what effective BODs look like. According to research of a couple of hundred global businesses, there is a clear move toward BODs helping firms develop and commit to strategy, and evaluate performance to determine what might be done better, what strategies are needed and how to more effectively execute against those strategies. It was interesting what qualities effective BODs display and how those qualities might have informed bringing Eugene Pfeiffer on board.

So, what is it that companies look for when they seek successful BODs? It is more than merely remaining complacent, it is striving for success and what is the primer for this is an ambitious chairman. Well, not sure what some think, but my observations make it clear that Nasrat Hakim is, indeed, ambitious for all the right reasons. And, because of that ambition, Elite's BOD will reflect the needs of the company as a growing entity. Therein lies the need for a board that has the diverse talent to constructively challenge the efforts designed to understand the market opportunities available to Elite.

Enter Eugene. Now, his extensive legal experience is notable for a couple of reasons. First, his CV should clearly show he is not in need of a job. Rather, he is an expert companies bring in to help with some heavy lifting and, when done, he leaves and the company moves on toward success. In short, he is not there for a long haul (and one might argue, neither is Nasrat). Second, despite the obviousness of his value, he is a real competitive advantage. That means he is an anomaly. Why do I say that? Because I did some homework when I read the announcement. Looking at ten companies that are into pain med drugs and are/will be potential competitors in the ADF market with Elite - Acura, Kempharm, Collegium, Egalet, Pain Therapeutics (PTIE), Durect pharma, Intellipharmaceutics, Purdue, Pfizer, and Teva. Not a single company had anyone sitting in either the C-Suite or on the BOD with any FDA experience...let alone the extensive experience Eugene garnered from ten years as a legal executive with the FDA. This is an unquestioned advantage to ELITE. PERIOD!