Replies to post #306212 on Elite Pharmaceuticals Inc (ELTP)

[dr_lowenstein]

I have to call BULLSHIT on this one

I hope they keep submitting a new ANDA every quarter- not because of the news value but because that's how drug companies make money.

Elite has NEVER made any money and with puny generic approvals with dozens of competitors it is not likely they will soon.

[Dubster watching]

I’ll continue to add slowly to to my core at these ridiculously low levels.

Won’t be long.

...watch!

[no2koolaid]

I hope they keep submitting a new ANDA every quarter- not because of the news value but because that's how drug companies make money.

Exactly and it is consistent with a cost structure that is related to generics. ANDAs are, by definition, NOT a differentiated product...they are a copy and that also informs not only the price for which they are sold but the entire value chain, as it impacts profitability. Given that Elite has its own manufacturing facility, they are able to control those costs and, thus, ensure greater profit even if they are able to undercut another generic price because the delta between production costs and price is reduced.

Then there is the effort by the FDA to approve generics more quickly in order to reduce the cost of, and access to, medicines. While not going too far afield, it is entirely reasonable to suggest that the strategy we did not see was the decision to focus on ANDAs and with it the creation of the SunGen partnership. Further, all too many small pharma firms suffer from terminal stupidity created by arrogance and try to commercialize on their own; failing to acknowledge they do not have the sales and marketing reach. These often end up failing. However, with the Glenmark and SunGen partnerships, Elite has substantially increased its commercial reach for its ever-expanding portfolio. It no longer is a question of if Elite will become a business success as it drives future revenue growth. To suggest otherwise is folly.