Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

I think you said in the past that Elite is never going to the Nasdaq and once we get SequestOx approved the company will be sold while being on the OTC.

I did and I do.

Sox is proof of concept for their ADF tech, the myriad generics add value, the SunGen partnership adds value, the revenues add value and the manufacturing infrastructure adds value. Then there is the question of comparable acquisitions when considering how much an acquirer will pay for Elite.

Nasrat holds too many shares for any graceful exit other than a buyout. And, while he may want to see how big he can make the buyout number (suggesting a longer timeline), it remains that Nasrat is approaching 60 yrs of age and may want to ride off into the sunset before the stress of running Elite gets to him. So forget a reverse, forget the Nasdaq, and recognize the market is not a mature market but one that will be defined by an ADF tipping point. The FDA will remove all non-ADFs from the market and, because they have no desire to create monopolies, will only do so at the point when there are sufficient ADFs approved. So, at present, it is not a problem for more ADFs to enter nor more companies with ADFs to enter the market. However, the point at which the FDA removes all non-ADFs from the market the clock starts ticking. To avoid barriers to entry, new entrants need to be commercialized within 3 years time or those in the market will become sufficiently entrenched and be able to squeeze them out due to a variety of factors not currently at issue.

Now to be clear and to avoid being misquoted...I am not saying Elite will bounce around for 3 years. I will be clear as I can be: They will be bought out within 18 months.