Elite Pharmaceuticals Inc (ELTP)

[Jimmy Joe]

A final thought: Based on a strategic decision that totally realigned its product focus (and which cost additional shares to fund), Elite has become a well-diversified generics company. As a generics firm, the focus is on price not differentiation. SOX was an NDA and, thus, differentiated. It was a strategic anomaly and, I believe, a mistaken decision for a generics firm to make. But I forgive them the mistake because they are not attempting to escalate their financial commitment to an opioid product line that has socio-legal-political issues. Moreover, ADFs, while a grand idea, are and remain a costly drug. ICER has put out a report that indicates ADF opioids are overpriced by 40% and it is a major reason they will not gain the traction with the now cautious prescribers who do not believe their patients are at risk of abuse or diversion. Because the cost of ADF opioids is high, abuse threat low, and many of these people are on fixed incomes and sensitive to pricing, healthcare professionals will not easily prescribe ADFs.

And for those upset with this path forward, which IS the right path forward there is a silver lining to this in my not so humble opinion.

It demonstrates the capacity and ability of this company to not just be flexible in product shift, but it also demonstrates the company's ability to develop a viable formulation in dealing with a potential problem. From an R&D standpoint this is a nice arrow to have in the quiver.

This is not just a generic pharmaceutical company. It can also think outside of the box. Very important to remember that. So, all is not lost on the ADF portfolio even though it may seem all was for nothing. It was an achievement in my opinion.