Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Persistence in pursuit of facts is my raison d' etre...

Lol. That isn’t fact. Sungen is NOT smaller than Elite. That is a wish, but not fact. Sungen, unlike Elite, actually launches approved ANDAs instead of collecting them and selling them at a significant loss. Not a great business strategy for sure, but the pathway Elite has gone. Lol.

As a standalone company, SunGen is smaller. As a part of the larger company that acquired it, of course it would be larger. Do you know what company acquired SunGen and when? No? Let me help...

In July 2016, HUNAN JINGFENG PHARMA acquired New Jersey-based Sungen Pharma LLC through its subsidiary for $250,000 and invested another $4 million into the target company.

How many products has SunGen launched? Any idea? Let me help...

SunGen Pharma, a privately held specialty pharmaceutical company which develops, contract manufactures, and sells pharmaceutical finished products, today announced to launch Bivalirudin for Injection in the near future through their joint venture Peterson Athenex with Athenex Pharmaceuticals (ATNX). This tentatively approved US ANDA is exclusively licensed from the current ANDA holder, Hainan Shuangcheng Pharmaceuticals. US Market Sales of Bivalirudin for Injection were $81.8M for the year ending December 2018 according to IQVIA data.

That was their second injectible with Athenex. How many other approvals are they getting revenue from? Only with Elite. And SunGen has no infrastructure to commercialize and that made this agreement necessary for SunGen...

In August 2018, SunGen announced it has entered into a strategic manufacturing partnership with Grand River Aseptic Manufacturing to collaborate in the manufacturing and commercialization of generic injectable pharmaceutical products. https://finance.yahoo.com/news/sungen-pharma-announces-partner-athenex-120000430.html

So, SunGen is smaller when calculating total enterprise value. And, EV is one basis for valuing a company when looking to be acquired or to seek credit.

Always glad to help clear up any misunderstandings about business...LOL