Elite Pharmaceuticals Inc (ELTP)

[imanjen13]

The most recent suit brought by Purdue for alleged patent infringement was filed in May and Accord's answer to the complaint is due by July 28. A result of this litigation is, unfortunately, many months away. I expect that after discovery is completed, Accord will make a motion to dismiss or for summary judgement claiming a valid patent for Oxycontin.
The stay of all proceedings in the Purdue v. Elite patent dispute is likely to remain in effect until there is a final decision in the Accord suit since the issue of patentability is similar in both suits. If Elite is funding the legal costs for the suit, it saves a lot of money as Accord is carrying the ball in discovery and motion practice. I do not recall seeing an item for legal for this specific case leading me to believe that the attorneys for Elite are taking this case on some sort of contingency arrangement.
The Oxycontin FDA approval, due to the long delay likely before launch, should move the needle closer to a buyout since the acquirer will have a long term view of the eventual value. The dormant Sequestox technology also falls into that category.