Replies to post #352452 on Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

How about a business perspective related to this… https://investorshub.advfn.com/boards/read_msg.aspx?message_id=162243799
And this?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=162243292

As to SOX, that was almost five years ago and a lifetime ago in business. Just to be clear, SOX was given a priority review by the FDA and such reviews end up in approval 95% of the time. Yet, that does leave the 5% that Elite fell into. But they are not the only ones. Ironically, Athenex had a drug with priority review that was just given a CRL. In fact, there is this observation about the FDA regarding that event…

Everecore ISI analysts Umer Raffat and Bo Chen wound up scratching their heads over this one, noting the FDA’s increasingly “variable” responses to NDAs and puzzling over why the agency would single out Athenex on issues other companies managed to avoid. They acknowledged one challenge, but felt there were other ways to deal with it than with a CRL.

Sounds a little like Elite and SOX, particularly when one considers that COLL had received approval from the FDA for their ADF opioid just a short time before Elite got the CRL and they skirted the issues that were the cause for Elite’s CRL. (A little known fact is that Athenex first approved drug was done through a partnership with SunGen – yep, that SunGen.)

In any event, the issue of ADF opioids is a fight that Nasrat did not want Elite to engage in and, for all the lamentable opinions, it remains that the pivot taken away from opioids was the means to reallocate the requisite capital to further development of the drugs that have led the move to profitability.

On this point I need to ask…the purpose of business is to do what? Develop their business? Okay, to do what? Create greater revenues? Okay, and what else? Gain greater market share? Yes, but to what end? Conventional wisdom holds that bigger market share means bigger revenues and lower value chain costs. However, the reality is increasing market share does not ensure profitability or competitive advantage. There is research that shows more than 70% of the time the company with the largest market share does not have the greatest profitability. And it is profitability that is the goal for business success. There is no greater goal, NONE!

As for waiting for a supplier to deliver on time (or at least only be fashionably late) this is so unsurprising given the external environment and supply chain has been upended by the pandemic, as even a modicum of inquiry would prove to be true. But, since I am all about helping educate, here is what the FDA said about the potential supply chain disruptions back in February 2020…more than a year ago… https://www.fda.gov/news-events/press-announcements/coronavirus-covid-19-supply-chain-update

In April 2020 we have this… https://hub.jhu.edu/2020/04/06/goker-aydin-global-supply-chain/

Then, in June 2020 we have this… https://www.statnews.com/2020/06/02/covid-19-exposed-cracks-global-medicines-supply-chain/

Finally, I will end with this… https://www.fticonsulting.com/~/media/Files/us-files/insights/articles/2020/mar/covid-19-impact-global-pharmaceutical-medical-product-supply-chain.pdf

As is clear from grounded theory, when doing research and you keep seeing the same thing over and over, there is reason to believe that there is truth to the information. On that and as a means to bring it all around to that most salient of points…how many quarters in a row has Elite been profitable? And how long has it been since Elite has had to tap LPC and dilute their share count? And why is that? Cash flow! Cash flow leading to what? Profitability! Funny how making money that turns into profit (excess cash) solves a great deal of troubles. So, while I do not know enough about Elite’s management to suggest claims of untold intelligence, I could not care less. What I care about is business acumen. And that Nasrat has. How do I know? Because I have played in the business big leagues. Moreover, what is important is that a successful business, one marked by continued profitability, will have its share price reflect that success. Again, as a little research will show...profitable business development is always followed by a rising share price that reflects business success...ALWAYS...NOT 95% of the time...100% of the time as in...ALWAYS. It is not an opinion, that is a fact supported by research. It remains that recurring profitability in the face of market opportunity and further portfolio development is a re-enforcing mechanism and portends well for Elite and its shareholders. When? When it happens! But it will happen. History shows it to be true, again and again.