Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Maz,

Good to see you posting and I hope your house and property are making a speedy recovery. At least as speedy as the insurance company allows.

I read your post and I get it. However, my agitation has not descended to disbelief because I see a different end game. My training at work. Nonetheless, I do have a couple of points I would make in response to your post.

They have spent millions of dollars of the R&D for such ANDA's along with what appears to be a 3m application fee for each.

The cost for an ANDA is not the same as an NDA. Rather than $2.3 Million (not $3 Million), to file an ANDA costs $17k per filing. The difference is not a small and is not bleeding money away. Though one would point out that filing for FDA approvals is what drug companies do. No?

Yes, he cut a deal with SunGen, but we have yet to hear one development over all this time, and it's not even opioid-related. CNS and allergy drugs...what do we know about that?

Not opioid related is a good thing. Diversification is an acceptable strategy and, given the political landscape, a wise choice. Many a company has moved away from “what brung ‘em” to the dance. I bet most people do not know that Berkshire Hathaway used to be a textile business. (Please, stop before anyone starts…this is not a comparison with BRK. It is allegorical…look it up). But, the following is the result of an alliance that occurred before Elite and only now we see the results...

August 31, 2017: Athenex Pharmaceutical Division and SunGen Pharma Announce Terbutaline Sulfate Injection Product Launch.

Yes, SunGen...that “little garage pharma.”

As for the strategy of growing a small generics firm into a large one…no, Elite is not. A small generics firm has no chance to compete unless it has some uniquely beneficial drugs. ADF opioids are one form, but the application of their technology to other forms of drugs appears to be what engaged SunGen and that is another form.

Where I heartily agree is that this is no longer the same “play” as before. But, that was the problem…”Swinging for the fences” caused all too many to buy into the belief of quick riches. Another swing and a miss for emotional investing. Real investing takes time, attention, and a willingness to embrace risk that transcends the “stop loss” triggers or flipping for dimes and quarters. I am not denouncing trading, I am just saying that is not what I bought into and that demands a means of analysis and comparison to get to where I believe this is heading. I tire of ungrounded opinions. I am still waiting for something compelling to convince me I am wrong. Delays are not failure, they are delays and a fact of business life. What has really changed for Elite are the timelines. The issue is when. But, is that not always true?