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Aug 22, 2016 total dollar volume
By Boyan Angelov
Dec 04, 2014

Elite Pharmaceuticals, Inc. (ELTP) Climbs On High Volume

Elite Pharmaceuticals, Inc. (ELTP) went 20.05% up in price in yesterday's session on a volume of 7,092,524 shares trading hands. This was the best volume the company has had since March. ELTP got its success after issuing a press release yesterday morning, reporting the successful results of its pivotal bioequivalence study for abuse-deterrent oxycodone product ELI-201.

The study was initiated in July of this year and was aimed to demonstrate the product's bioequivalence to the branded drug, based on pharmacokinetic measures. ELTP required the FDA's review to confirm the bioequivalence of the ELI-201.Elite Pharmaceuticals, Inc. stock chart

ELTP has been drifting around the $0.30 mark for a while. After a red streak which brought the ticker under the $0.20 at the outset of the week, the company managed to climb back up to $0.27 at yesterday's close after two good sessions.

Still, the penny stock is far away from its ascent from earlier in the year. A better look into the company's financials may help do a better evaluation of its long term potential. ELTP's latest 10-Q for the period ended September 30, 2014 contains the following:

  • Cash: $7.6 million
  • Total current assets: $11.7 million
  • Total current liabilities: $3.8 million
  • Revenues: $1.2 million
  • Net income: $21.3 million

The high income Elite Pharmaceuticals has managed to make immediately stands out. The company has managed to turn the tide in the last period, while retaining most other aggregates around the same level. The liabilities are the other only aggregate which has changed notably for ELTP, being reduced by over a third in amount.

In the last six months, the company has accumulated a notable indebtedness of $568,766 in loans. ELTP also has a high accumulated amount of warrants, valued at $26,981,822 in fair value as of September 30.

ELTPIn the last six months, Elite Pharmaceuticals has issued a total of 31,509,611 shares of common stock. In the last fiscal quarter, ELTP issued a total of 4,582,256 shares of common stock pursuant to the LPC-40 purchase agreement for proceeds of $1,273,128. On November 4, the company issued 246,591 shares of common stock pursuant to the exercise of cash warrants for $17,870 in proceeds.

Analyzing the risks around ELTP stock before investing in the company would be a wise call. Doing due diligence is always advised before making an investment on the stock market.

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