Elite Pharmaceuticals Inc (ELTP)

[Winechemist]

Good afternoon everyone, just want to clear up what an authorized generic is by definition. To be honest in our industry its frustrating as we wait 17 years for a drug to come off patent and then what happens is typically 6-9 months prior to the patent expiring, the branded drug contacts a company such as Prasco, who by the way do not manufacture any drugs themselves, and they sign them up to be an authorized generic. What this means is that the brand makes the drug and labels it under the Prasco/Burel name and they sell it as a generic, however it is the same drug as the brand. What this does is this allows them to lock up the generic contracts at the wholesalers prior to the true generics even hitting the market. Trying to get a drug out of a contract is very hard as you can bid a lower price but typically they just go back to the drug they have loaded and ask them to match, which they usually do. Hope that helps clear up what an authorized generic is in the industry. So no Elite is not an authorized generic, however Prasco being as big as they are has much more influence with getting drugs under contract and this is what will help Elite in a big way!! Have a great afternoon everyone. Cheers