Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

How is CEO “holding it back”? What do you mean by “when he’s ready to let it go”(approx quote)?

Hello elichen2! Allow me to introduce myself. My name is WeeZuhl. Have you ever read any of my posts? Even one? Let's face it, they're all pretty much the same. My posts detail how every time the company takes one step forward, then there is always somebody there to make sure it takes two steps backward, and that somebody is ALWAYS the CEO, Nasrat Hakim. At first it seemed like maybe there were just some growing pains, and then it seemed like maybe we were stuck in a run of bad luck. Then shareholders were forced to confront the possibility that the CEO is just plain incompetent. For a while it seemed like maybe he was trying to accumulate as many shares as he could by whatever means necessary, including sabotaging revenue and making suspect, unfair deals with his own private company. For a long time there was hope that after he had satisfied his gluttonous appetite for ELTP shares, then he would stop "holding it back" and "let it go" so that the rest of common shareholders could finally enjoy the benefits of success. But after eight years of the same pattern, it seems obvious to me that he does not intend to let shareholders have any part of the success.

In my opinion, the best explanation for his repeated harmful decisions is because he intends to acquire the whole pie for himself and his pals. We know from SEC filings that Nasrat Hakim is a member of Epic Investments, and this group of former Elite directors is thought to control 10's of millions of shares and warrants, possibly 100's of millions. It is very possible that this group of 4 individuals already controls 50% of shares, and if not, they could in the near future. As the share prices continues to crater, Nasrat's accumulation of shares continues to accelerate. Once they have 50%, they can do whatever they want, including taking the company private, without any kind of prior notice or vote.


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Feel free to read my older posts for the dirty details, but here's a few examples:


1 STEP UP: Company acquires 13 ANDA's and immediately signs a commercialization agreement for all 13.

2 STEPS BACK: Nasrat chooses his business partners at Epic Pharma to distribute the drugs, but they never do. For the entire term of the agreement they do nothing with any of them. Hakim shrugs. Whatya-gonna-do?


1 STEP UP: FDA grants the company a waiver to file their first NDA for free.

2 STEPS BACK: Nasrat submits an oxycodone formulation which is far outside of the bioequivalence range under fed conditions. He lies to the world in a PR that says the drug is bioequivalent to the comparator, even though he knows it definitely is not. He tries to feign surprise when the CRL finally comes through, but he has known for at least 2 years that it would happen this way (see Avridi).


1 STEP UP: FDA gives SequestOx a "a clear path forward" with reformulation of the agonist oxycodone bead.

2 STEPS BACK: Nasrat blows it on the first reformulation attempt. He wastes a year and substantial dollars on a formula which is not substantially better than the original formula. After another year and a lot more money, he finally gets it right with a formula that is bioequivalent under both fasting and fed conditions. Now the ball is on the goal line. All he has to do is the pivotal bioequivalence study and then resubmit for approval. He never does. He immediately shelves the development project. Nasrat saw to it that the only product that ever caused an increase in share price would never see the light of day (at least not yet- not as a public company).


1 STEP UP: After 5 years of successful contract manufacturing of methadone, the company acquires their own ANDA for methadone, which will substantially increase profit margins.

2 STEPS BACK: Hakim nearly immediately dumps the new ANDA for a fraction of the cost to develop it, leaving the company without any methadone revenue at all.


1 STEP UP: The company acquires ANDA's for Norco and Percocet, with a combined market of over a billion dollars. These are BY FAR the most valuable assets in the history of the company.

2 STEPS BACK: Nasrat refuses to commercialize the drugs, even as the company gets tagged by their auditors as a "going concern" due to lack of revenue. He sells our most lucrative assets for lunch money without any prior discussion.


1 STEP UP: The company "pivots" (lol) to CNS stimulants and eventually acquires ANDA's for Adderall IR & ER, nearly $2 billion combined market.

2 STEPS BACK: Hakim declares success with his distributor's <1% market penetration, and he promises more CNS stimulants to follow. Multiple years later, there have been no new ANDA filings. The share price continues to tank, and the "pivot" looks more like a face plant.






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