Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

Company has about 10%+ capture rate on Adderall IR market (400M market) after 1 year based on what we see in Elite revenue.

They just launched Adderall XR that is a 1.3B total market at end of March. 10K due in couple weeks will only include initial launch quantity so not expecting much benefit yet. This drug has basically brought them to CFP.

If they get 10% in this market even after 3 way split with Sungen & Lannett (like Adderall IR), we are sitting very pretty.

They have a small antibiotic awaiting FDA approval this quarter (pre-Covid). Also, waiting for them to do BioEquiv for an ever CNS drug than Adderall XR (Concerta?) with less competition.

Awaiting insights on Adderall XR progress since launch, antibiotic approval, progress on CNS and rest of pipeline. Company is coming out of shadows with real revenue, real fast, which will self-fund rest of pipeline.

Nasrat has been known for years to overpromise and underdeliver. That seems to have changed past couple of quarters as Adderall IR has picked up steam. Company has diluted for years and is nearing the end of that chapter. Couldn’t dilute last year due to PPS being lower than floor price so they sold non-performing ANDAs at fire sale prices to buy more time.

Series J conversion will take place soon, which probably saved the company.

Fun year ahead for sure. Don’t take my word for it. Let the financials speak over the next few quarters. They’ll speak for themselves.