Elite Pharmaceuticals, Inc. (OTCBB:ELTP) Rises On Encouraging Financial Results
Last Friday Elite Pharmaceuticals, Inc. (OTCBB:ELTP) filed their annual report for the fiscal 2013 and their stock immediately jumped up the chart. They added 14% to their value on an unseen in the last couple of months traded volume of 4 million shares. During yesterday session though the company couldn’t maintain such a positive trend and the stock fluctuated quite a bit. In early trading it reached as high as $0.09 but after that it quickly fell down. At closing time things had settled at $0.08.
ELTP, as their names shows, are a pharmaceutical company focusing on the development and manufacturing of oral, control-based products and technologies relating to abuse resistant products. The company has been granted several patents from the FDA and are engaged in the production of several commercially sold drugs.
They managed to improve their fundamentals and according to their 10-k report they had:
- $369 thousand cash
- $2.5 million total current assets
- $5.3 million total current liabilities
- $3.4 million revenues
- $1.4 million net income
ELTP have implemented some cost reductions while at the same time increased their workforce to 26 full-time employees. Not everything has been going in their way though.
Back in March, 2011, the FDA announced that around 500 cough/cold and allergy related products had to be removed from the U.S. market. Among them were two of ELTP‘s drugs that at the time were responsible for 97% of the revenues. Now with the current diversified product line the company is in a much better shape.
On April 19, they entered into a stock purchase agreement under which Lincoln Park Capital Fund, LLC. has committed to buy up to $10 million of common stock. The worrying part about this deal is the clause that if the price per share falls below $0.07, the company will be unable to sell shares to them. And at the moment their stock is hovering right above this mark.
Currently ELTP have launched two new products and are close to manufacturing a newly approved ANDA drug. So with three additional sources of revenue their income should improve even more in the next quarter.
While not exactly in the same kind of pharmaceuticals, during yesterday’s session we saw some movement from the medical marijuana industry. The leader in the field Medical Marijuana, Inc. (OTCMKTS:MJNA) pulled through and added around 20%. The same, however, cannot be said for Hemp, Inc. (OTCMKTS:HEMP) who have been on a constant slide towards the bottom since February.
