Elite Pharmaceuticals
Biotech

Elite Pharmaceuticals Inc (OTCMKTS:ELTP) Trend Reversal In Play

Elite Pharmaceuticals Inc (OTCMKTS:ELTP) is still trading at a discount even on strengthening its pipeline of generic drugs. The company is fresh from filling an Abbreviated New Drug Application (ANDA) with the FDA, a milestone poised to strengthen its revenue streams. The ANDA application also comes months after the FDA granted the company approval for a generic version of Norco, for the treatment of moderate to moderately severe pain.

Elite Pharmaceutical Price Analysis

Last year alone, the development stage company completed four ANDA’s further affirming its credentials in the sector. Amidst the milestone, the stock continued to underperform the overall industry, depicted by a 50% slide from record highs in the market. However, the stock’s sentiments appear to have turned bullish.

Elite Pharmaceuticals has since bounced back from the brink of collapse, helped by renewed investor’s interest. The stock is currently flirting with the $0.09 mark, which happens to be the immediate resistance level.

ELTP Daily Chart

For the stock to turn bullish, be it in the short term, it needs to rise and stabilize above the critical resistance level. Above the $0.09 mark, the stock should be able to make a run for the $0.11 mark, which happens to be the next resistance level.

Below the $0.09 mark, Elite Pharmaceuticals remains vulnerable to further drops given the underlying long-term downtrend.

About Elite Pharmaceuticals

Elite Pharmaceutical is a specialty pharmaceutical company that researches and develops orally administered drug delivery system. It operates in the Abbreviated New Drug Applications for Generic products segment. The company also owns licenses and contracts for the manufacture of generic and oral dose pharmaceutical products.

Recent Development

A spike in share activity follows the announcement that Elite Pharmaceuticals has completed an ANDA filing for a generic version of an antibiotic product. The new ANDA brings to three the number of fillings that the specialty pharmaceutical company has made as part of its ongoing partnership with SunGen Pharma.

With the filling, the company now has on its hands an asset that could generate significant revenues going forward. According to filings, the antibiotic drug that the new drug will be imitating generated sales of about $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 a total of four ANDAs under FDA review,” said Nasrat Hakim, President, and CEO of Elite.

Elite Pharmaceuticals has continued to expand its pipeline of generic products as it seeks to strengthen its revenue streams. As of the end of 2018, the company had already made four ANDAs key among them being a generic version for Norco. Hydrocodone and acetaminophen is the drug that the company is hoping to target sales with, in the multimillion pain-relieving sector.

“Hydrocodone/acetaminophen is a strategic addition to Elite’s pain medicine portfolio. The acetaminophen creates irritation if the product is crushed and taken intranasally, thereby potentially providing some intranasal abuse-deterrence according to the FDA,” said Mr. Hakim.

The strengthening of the product line, in pursuit of new revenue streams, could not have come at a better time. Elite Pharmaceuticals rattled investors on reporting a 16% decline in revenues in Q2 that came in at $1.4 million. The company attributes the drop to lower revenues from the manufacture of a generic version of methadone.

In a bid to accelerate revenue growth, the company has turned its attention to product development having already set aside $2.5 million for the drive. The company has about five ANDAs filled with FDA as it also prepares to launch three additional products as part of its Glenmark marketing alliance.

What Next For Elite Pharmaceuticals

Elite Pharmaceuticals stock price appears to have reached a bottom if recent price action activity is anything to go by. High turnover in traded shares attests to renewed investor interest after the underperformance of 2018. The stock has made some ground in recent weeks as the upward momentum continues to gather pace.

The stock looks set to continue climbing the ladder as investors take note of the company’s robust pipeline of generic products. In addition, the company has invested a substantial amount of money for the development of new products, which affirm its growth metrics.

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) Trend Reversal In Play
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