Elite Pharmaceuticals Inc (ELTP)

[Phisherman]

Elite Pharmaceuticals Inc. Announces Signing of Strategic Alliance Agreement Epic Pharma, LLC and Epic Investments, LLC
03/25 11:35 AM
On March 18, 2009, Elite Pharmaceuticals Inc. (ELI:$0.2001,$-0.0399,-16.62%) entered into a Strategic Alliance Agreement with Epic Pharma, LLC and Epic Investments, LLC pursuant to which Elite will commence a strategic relationship with Epic, a pharmaceutical company that operates a business synergistic to that of Elite in the research and development, manufacturing, sales and marketing of oral immediate and controlled release drug products. Under the alliance agreement at least eight additional generic drug products will be developed by Epic at Elite's facility with the intent of filing abbreviated new drug applications for obtaining United States Food and Drug Administration (FDA) approval of such generic drugs, (ii) Elite will be entitled to 15% of the profits generated from the sales of such additional generic drug products upon approval by the FDA, and (iii) Epic and Elite will share with each other certain resources, technology and know-how in the development of drug products, which Elite believes will benefit the continued development of its current drug products. In order to provide Elite with the additional capital necessary for the product development and synergies presented by the strategic relationship with Epic, Epic will invest in Elite through the purchase of $3.75 million of newly issued shares of Elite's Series E Convertible Preferred Stock and warrants to purchase additional shares of Elite's Common Stock.