Replies to post #387620 on Elite Pharmaceuticals Inc (ELTP)

[Pharma Sleuth]

The other part of this is the buyout. Elite is highly motivated to be lean and show as much profit as possible incuding the money they spend on R&D.

The higher the profit, the leaner and stronger they run, the more the company is worth in a buyout.

Again, this is all just basic business. You want to show how profitable you are in total and margins. That's what drives the buyout price.