Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

I do think Elite will reach 100M and beyond if they don’t get acquired, but not within 3 years as stated earlier. FDA review and launch take far too long to make this feasible.

We have also seen with Elite that market size doesn’t matter too much, within reason, based on their flagship products. We know that Adderall IR is a fraction of XR and yet the income from IR is a multiple of XR. Elite’s IR does have an additional 2 years of being in the market than XR, but Lannett has barely been able to scratch the surface with XR in a 1B+ market in over 2 years. August report will provide interesting insights in Y/Y growth from XR, but think it will be lower than what we saw in 2021. Organic growth is much more difficult than growth from new products.