Replies to post #104215 on Elite Pharmaceuticals Inc (ELTP)

[Aqua]

Elite and Epic is a marriage made in Heaven should it go that far. I think the door is still open if authorized shares are increased. Happy Easter and C H E E R $ !

Post #7032 from Tangerine:

Elite CEO is paid a nominal fee but mostly in stock. My understanding is Jerry Treppel had a major investment in Elite and took over as CEO to ensure success of the company and protect his investment. Remember they almost went bankrupt in 2009 timeframe. New CEO and management implemented a smart and highly feasible business plan to bring in manufacturing revenue and have the partners to do it.

Epic and Elite execs are major shareholders. The two companies as described above are now tied together. Epic can ensure Elite is successful in the near and long term. This is what I believe spurred the recent rise in PPS more than anything. Actual company insiders have purchased stock. Epic can make Elite as successful as they want by supplying new ANDAs and keeping costs very low. We are seeing this already.

I have read numerous rumors that there could be a reverse merger between Epic and Elite. Epic does own and has access to enough shares to probably make this happen. The conversion of the preferred D shares is seen by some as a sign that this could happen. There are other tidbits regarding the June timeline being required to make this happen as it represents a specific timeline from other deals. This is not 100% clear to me but the data is out there to be investigated.

I do see it as a real possibility. Epic and Elites relationship is very symbiotic and Epic could get a ton of cash out of it. The PPS would certainly soar and the two companies could be a force due to their efficiency, unique product pipelines and generic manufacturing capacity. Elite makes 24 hours drugs that are effective and this tech can be used with many drugs. Elite has received buyout offers in the past but that was when their worth was at an absolute low.

[no2koolaid]

Yes, Destiny said... that Dianne said...but...three things are clear: 1) Dianne is NOT the spokesperson for Epic; 2) Companies will always deny and never confirm actions until they are ready to announce them; & 3) A merger does make strategic sense. And, a bonus observation: 4) An Elite/Epic merger does not preclude a partnership. However, it makes them less an acquisition target..IMO.

One more point related to a sagacious post by someone...it was mentioned that big pharma likes to place roadblocks to make life difficult for smaller firms. To a limited extent, this is true. However, the larger truth is that in the world of pharma, R&D and approval/marketing/sales are costly and lengthy processes. So, it is far easier, and often cheaper, to buy a smaller firm. Business really is about competition and rather than spend money fighting a company to keep their products from market, it makes more sense to acquire them and, in so doing, improve one's position within the industry and against one's competition.