Elite Pharmaceuticals Inc (OTCMKTS:ELTP) On The Right Path After ANDA Filing For Generic Pain Product
Elite Pharmaceuticals Inc (OTCMKTS:ELTP) announced an Abbreviated New Drug Application (ANDA) with the Food and Drug Administration (FDA) on April 4th for a generic pain treatment. Elite Pharmaceuticals Inc (OTCMKTS:ELTP) made the announcement about the new application more than a month ago, revealing that the ANDA filing with the FDA was for a generic version of the synthetic narcotic. According to statistics provided by IMS Health, the original product and its equivalents in the market generated more than $40 million in sales last year. These numbers were too good for the company to pass up.
“With the filing of this ANDA, Elite has three pain product ANDAs under review by the FDA. The market for these products has combined annual sales of over $1 billion,” stated Elite Pharma CEO, Nasrat Hakim.
Elite Pharma stock rallied ever since the announcement
Elite Pharmaceuticals Inc (OTCMKTS:ELTP) hopes to use the generic drug to get a material share of the revenue from the pain management drugs. Hakim stated that it is in the company’s interest to continue developing more generic products in order to grow its business. Meanwhile, the announcement seem to have triggered positive sentiments by the company’s investors. Elite Pharma’s stock has since rallied and the stock has been experiencing significant volumes in the stock market. This is great news considering that the firm’s stock took a dive in 2016 after its lead development product was rejected by the FDA. The stock has not managed to fully recover since then but things seem to have improved since the ANDA filing announcement.
Elite Pharmaceuticals Inc (OTCMKTS:ELTP) is one of the most traded stocks on the OTC market. Accordingly, it is on the watch list of many traders. Despite rallying, the stock still has a long way to go from the highs that it hit a few years ago. Nonetheless, followers of Elite Pharmaceuticals are hopeful for the return of better valuations after the CEO announced intentions to pursue generic drug revenues.
Elite Pharmaceuticals Inc (OTCMKTS:ELTP) stock closed the latest trading session on Friday at $0.19.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.