Elite Pharmaceuticals Inc (ELTP)

[Doctor Detroit]

Disappointing all around, but the FDA can be a real heartbreaker.

Maybe its just me, but the press release was very cryptic, and a bit arrogant. Often, I've seen companies describe the reasons for a CRL (such as more data required, etc.). If this is a CRL over labeling, that's a lot better than a CRL calling for more clinical trials. I also think a CC before the market opens Monday might do more good than just saying "we'll get back to you" once we talk with the FDA.

Any thoughts on whether this pushes ELTP closer to a "hail mary" buyout? Another round of clinical trials would require much more further dilution, and management may decide they are better off handing over the reigns of development elsewhere.