Elite Pharmaceuticals Inc (ELTP)

[Pharma Sleuth]

I think contract drug manufacturing makes a lot of sense for these big companies. They don't have to deal with the bloated overhead they carry. Smaller companies like Elite can run lean and be a lot.more efficient.

You can't run your business the same way when you have a huge profits from proprietary drugs and need them to support your development and shareholders. Generics have more competition obviously so the margins get smaller. But companies like Pfizer can't be nearly as efficient.

Anyone that's worked for a huge company versus the maneuverability you have as a small company knows this to be true