Article - Elite Pharmaceuticals: Call It A Comeback Story

From a ELTP "long" investor.... In my previous article published on May 28th titled Actavis: Abuse-Deterrent Opioid Connections, I noted connections and relationships to watch for between Actavis (ACT) and several companies. As it turns out, several of these companies have played a role in the re-emergence of the relatively unknown Elite Pharmaceuticals (ELTP.OB). This article will examine these recent events and evaluate the opportunity this presents to investors. In my opinion, this is an incredible comeback story that will not go unnoticed much longer. About seven years ago, Elite Pharmaceuticals traded on the AMEX, was popular among investment firms, and had a bright future with controlled release and abuse resistant opioid technologies. However, mistakes by management, coupled with the down turn in the economy left the company short of being able to attain their goals and on the verge of bankruptcy. An interesting read is this 2006 interview in the Wall street Journal with the former CEO Bernard Berk. Elite was an innovator but ran out of time and money when the market crashed shortly thereafter. The technology was there but the financial sustainability was not. A stock that used to trade for dollars now trades for eight cents. But that is starting to change. What has happened since May 28th? In June they announced sales of their existing drugs resulted in a record quarter. In August they announced senior management from Actavis has taken over key roles at Elite. In addition in August they announced numerous FDA approved drugs have been added to Elite's growing pipeline. In their most recent earnings conference call Elite announced they were on the verge of getting their abuse deterrent products into the final stages needed to garner FDA approval. During the Rodman and Renshaw Conference, CEO Nasrat Hakim noted that they have been approached by several companies regarding Elite's technology including meetings with a CEO the day before and the Chairman of a major pharmaceutical company two weeks prior. Elite previously cited in their filings "doubt as to our ability to meet our business objectives and to continue as a going concern." Their most recent 10q removes that language. Read the rest of the article here: Seeking Alpha ELTP Article