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Replies to post #48109 on Elite Pharmaceuticals Inc (ELTP)
The above reply to this factual article is actually not factual at all. Lets see where to begin...
Lodrane - This is HITK/ECRs drug - Elite developed and manufactured it for them. HITK was notified in 2010 when they began to prepare the FDA requirements for approval. Not 2006 and it wasn't Elite's drug. This can be found in both HITKs and ELTPs filings. So to blame the CEO of Elite doesn't make any sense here and the timeline is about 4 years off. Elite has been supporting HITK with everything they have required to submit to the FDA to gain approval from the FDA.
The 1.5 million positive working capital was from the Epic strategic Alliance. Elite has partnered with some of the largest players in the industry including. Watson. Epic is a massive contract manufacturing company for Sandoz and was at one time the largest contract drug manufacturer for a single company and may still be. The 1.5 million went to get more drugs to launch for Elite.
Elite is about to launch the last 2 of these products with an IMS number in excess of 60 million dollars. Naltrexone and Phentermine 15mg and 30mg. The 15mg is 1/2 of the generic of the billion dollar projected drug Qysmia.
Elite has never been cashflow positive outside of 2 Qs right before Lodrane was pulled. They will shortly have 8 drugs launched, from 0 drugs when Lodrane was pulled. This was done in about 18months and they are about to cash flow positive again.
The NJEDA item is several years old and Elite submitted a proposal to NJEDA to restructure their deal. However since Elite continues to pay the interest on the deal, it is not expected that NJEDA will vote anytime soon since they continue to get paid.
The interesting thing about their proposal to NJEDA is they proposed to pay off all their debt of about 3.5 dollars in one shot this year. That is Elite's total debt. How can that be possible?
Elite owns 10% of Novel. They invested 7m dollars in 2006. That investment is worth somewhere between 10-50 million dollars. Novel has about 32 commercial drugs including their very recent approval of the "plan B" pill which is an 88 million dollar drug with two other competitors. Elite owns 10% of this company.
How many penny stocks own 10% of a company like Novel? The owner of Novel sold his last two companies for an estimated 130 million and 450 million dollars.
The CEO has since put 1 million dollars via unsecured loan to support their R&D efforts.
All of this is great but where is the homerun? Elite's primary focus has mostly been in the field of abuse resistant opioids. Having completed PH1 and PH2 for abuse resistant Oxycontin, Elite is pushing toward completing trials now for additional products. These products are held closely to the vest for competitive reasons but the CEO put it best.
"It’s interesting to me that someone who worked on Wall Street for 25 years and disparity in valuation between companies like Elite and other companies involved in development of abuse-resistant products like Pain Therapeutics, Acura, what it says to me is that, the investment community doesn’t really believe us yet, but these products are going to be real. Well, there is lot of people in this company including myself and Chris and Carter, and our Chief Scientific Officer who have been paid a significant amount of stock because we do believe that. And that market has developed in a way enormously to our advantage, and we think we have an officious technology that is in a lot of ways superior to approaches that other companies are taking"
03/11/13 4:25 PM
