Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Good question and the path forward is linked to costs...not only what it costs to make a drug but how it is priced. This is not an "If you build it they will come." sort of thing. It has to be done at least cost; so the lower priced ADF makes sense. What about SOX? It seems that, while on the shelf, they have something of value and they are taking it to a logical stopping point; as they determine the question "Of what value?" As the SA article pointed out, ICER says ADFs are currently priced too high and prescribers patients are on fixed incomes and not abusing (or so they think) so they do not feel compelled to prescribe ADFs. What remains a wild card is that the FDA may, as some suggest, mandate only ADF opioids can be sold. But that is no near term result and will only come with much debate by politicians.

IFF (a math term) Elite can produce and price an ADF reasonably AND the current "all anti-opioids all the time socio-political" noise calms down, there will be an opportunity. But, frankly, by then I think the portfolio should be some other management's game to play. It is currently up to Nasrat, et al. to set up the business to show its value now/then/in-the-future. How this looks going forward will determine where it will go and what will happen.