Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Let's think for a moment...look at the four listings and what do you see? That little circle R means registered trademark. That does not mean the sum of the generic market. Only Vyvanse remains unencumbered by generic competition. For the other three, multiply their market share by the number of total entrants in their generic pool.

When drugs go off patent the novel drug, at best, is able to maintain an equal share as long as they adjust the price to compete with generics. In any event, if we believe there are eight competitors (Including Elite) in the Adderall market that makes the prorated market roughly $1.6 Billion. So, the point is the same...Vyvanse has a market size and patent expiration that makes it attractive to a generic drug produced by Elite.