Elite Pharmaceuticals
Biotech

Elite Pharmaceuticals, Inc. (OTCMKTS: ELTP) A Breakout Play On Sales Growth Boost

Elite Pharmaceuticals, Inc. (OTCMKTS: ELTP) stock has been on an impressive run ever since the company reported impressive financial results for the first quarter. A 40% plus rally at a time when the broader equity market appears to have turned bearish, signals a change of tide in market sentiments. It also underscores strengthening investor confidence about the company’s growth metrics.

Elite Pharmaceuticals Prices Analysis

A 55% sale growth in the recent quarter is one of the catalysts that continues to strengthen Elite Pharmaceuticals market sentiments. For starters, it underscores the fact that the core business is growing at an impressive rate even on the broader industry, experiencing a number of challenges. The inking of a supply and distribution agreement with Lannett is another development that affirms the company’s push for sales.

ELTP Daily Chart

A rally past the $0.07 level has since opened the door for Elite Pharmaceuticals to recoup losses accrued since the start of the year. A rally followed by a close above the $0.08 level would bring the share price back to where it started the year at. In addition, it should pave the way for further rallies probably back to this year highs of $0.11. Given the strength of the upward momentum, Elite Pharmaceuticals could be on its way to recording new highs.

About Elite Pharmaceuticals

Elite Pharmaceuticals bills itself as a specialty pharmaceutical company engaged in the development and distribution of abuse-deterrent opioid products. The company boasts of a robust pipeline of generic products licensed by big Pharma TAGI Pharma, Glenmark Pharmaceuticals.

Sales Growth Boost

The catalyst behind the recent rally from one-year lows is the confirmation that Elite Pharmaceuticals revenues increased by 55% in the first quarter, to $3.4 million. The increase is attributed to increased sales of two crucial products launched in the quarter.

The pharmaceutical company launched Adderall® and Dantrolene capsules as it continued to expand its pipeline of generic products to meet growing demand. Sales growth can also be attributed to the signing of a strategic partnership with Lannett Company for the commercial launch of Dantrolene Capsules.

Under the terms of the agreement, Lannett becomes the exclusive distributor of Dantrolene Sodium Capsules in the U.S. The distribution agreement should enhance Elite Pharmaceuticals ability to reach a broader target market as part of an effort of strengthening sales channels.

“We are pleased to add Dantrolene to our commercial product portfolio and to have Lannett as our marketing partner,” said CEO Nasrat Hakim.

A deal for Dantrolene Capsule builds on a similar deal, that Elite Pharmaceutical signed for the distribution of two generic products that the pharmaceutical company is developing in partnership with SunGen Pharma.

Expanding product Line

Away from the aggressive commercialization drive in pursuit of sales. It has been an exciting year for Elite Pharmaceuticals as it continues to strengthen its product line. Early this year, the company, in partnership with SunGen, filed an Abbreviated New Drug Application for a new generic version of an antibiotic in the market. The new generic product seeks to target an antibiotic that generated $94 million for the 12 months ended September 30, 2018.

“This is the third ANDA developed and filed with our partner, SunGen. Our first ANDA with SunGen, a generic version of Adderall®, was approved this December and we look forward to additional approvals and filings in the future. In addition to our SequestOx™ NDA filing, Elite has four ANDAs under FDA review,” said Mr. Hakim.

Bottom Line

Elite Pharmaceuticals turn around after a roller-coaster first half of the year is gaining traction. The stock bouncing from one-year lows on a huge turnover of traded shares underscores investors growing confidence about its long-term prospects.

Impressive first quarter results indicate sales are growing at an impressive rate. The company moving to expand and strengthen its product line with new generic products also points to a bright future.

While the stock has taken a beating over the past year, the tide appears to be changing in favor of the bulls. The fact that the stock is rallying at a time when the broader stock market is on a downtrend underscores the fact that it has already hit a bottom and due for a correction higher. We expect new highs in ELTP by the end of the year.

We will be updating our subscribers as soon as we know more. For the latest updates on ELTP, sign up below!

Disclosure: We have no position in ELTP and have not been compensated for this article.

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Elite Pharmaceuticals, Inc. (OTCMKTS: ELTP) A Breakout Play On Sales Growth Boost
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