Elite Pharmaceuticals Inc. (OTC:ELTP) Stock Trends Higher: Here is Why
Yesterday, Elite Pharmaceuticals Inc. (OTC:ELTP) was in sharp focus after the company announced that its generic Adderall version had been approved by the Israeli Ministry of Health.
Elite Pharmaceuticals’ Generic Adderall (R) Receives Marketing Approval from the Israeli Ministry of Health
The company’s generic Adderall version was described as a single entity immediate release mixed salt Amphetamine product. Elite Pharmaceuticals announced that it was available with 10 mg, 20 mg, and 30 mg strength tablets.
Following the approval, Elite Pharmaceuticals would supply the product to its exclusive distributor for the Israeli region, Dexcel Pharma. The product stimulates the central nervous system for the treatment of those with ADHD (attention deficit hyperactivity disorder) as well as narcolepsy.
The Agreement
As per the terms of the distribution agreement signed by the company with Dexcel, Elite Pharmaceuticals would be responsible for manufacturing and packaging the generic Adderall product with the Dexcel label. Conversely, Dexcel would be responsible for marketing, sales, and distribution of the market. All the expenses related to distribution, marketing, and sales would be borne by Dexcel.
Additionally, Elite Pharmaceuticals would also be paid a pre-decided transfer price for the product by Dexcel and shares of profits once certain conditions are met. The first shipment would depend on manufacturing, DEA-related quotas, and licensee orders. The company stated that it could take a few months.
Fundamentals
| P/E Ratio | 21.2800 |
| PEG Ratio | 0.03 |
| Price to Book | 7.45 |
| Price to Cash Flow | 83.2486 |
| Price to Free Cash Flow | 217.546 |
| Total Sales (TTM) | 66.45 M |
| Revenue per Share (TTM) | 0.06 |
| Shares Outstanding | 1.068 B |
| Share Float (%) | 832.10 M (77.89%) |
| % Held by Institutions | 0.01 |
