Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

You've got to know when to let go.



https://www.chicagobusiness.com/health-care/akorn-files-bankruptcy-after-failed-takeover-fda-warnings

May 21, 2020 06:17 AM UPDATED 2 HOURS AGO
Akorn files for bankruptcy after failed takeover, FDA warnings
The Lake Forest-based drugmaker listed as much as $10 billion of debt and $10 billion of assets in its Chapter 11 petition.

This is not a stock I follow regularly, but it is a stock I have seen mentioned on this board several times. It has a similar aspirational story as ELTP, small pharma, multiple decades of R&D, move to generics, OTC origins. Almost made it. OTC--> NASDAQ. Premium $4.3B buyout offer by Fresenius in 2017. And just like that -POOF- it all fell apart.

In December of 2018, Fresenius SE backed out of its $4.3 billion offer for the company after it discovered issues with Akorn’s pharmaceutical production, quality control and drug testing. Then, in 2019, the FDA issued warning letters to Akorn relating to two of its plants—one in Somerset, N.J. and the other in Decatur, Ill.—after finding manufacturing violations.

From OTC penny stock to $49 on NASDAQ just 5 years ago, now back to 0.17 today. Debt. Downturn. Done. A cautionary tale.