Two days ago, Elite Pharmaceuticals, Inc. (OTC:ELTP) returned to the pink sheets quotes with a bang. Not only did ELTP stock soar a staggering 33.33% up in value, but it also shifted more than 11 million shares, which had not happened since July 1. As a result, ELTP ascended to the $0.10 level for the first time since mid-August. The momentum continued during the latest session yesterday, as well. By the end of the day, ELTP had added additional 12% to its value, closing at $0.112 per share on a slightly lower volume of 8.3 million.
As it is, the company has managed to regain its positions without the help of any promotional activities whatsoever. Rather, it has relied on official press releases. In this respect, ELTP issued another piece of news yesterday proudly announcing the launch of its antiallergic Lodrane D(R). Thus, with a final product hitting the shelves, ELTP might either strike it lucky, to the delight of its supporters, or crash down and vanish into thin air should customers remain indifferent to this new product.
Founded in 1984, Elite Pharmaceuticals, Inc. specializes in developing drug products designed to relieve pain, heal allergies and treat infections. The company currently offers two anti-allergic products on the market. Two additional oxycodone products appear to be under development. Elite Pharmaceuticals is headquartered in New Jersey.
Being a diligent financial information provider, ELTP files its regular reports with the SEC. Its most current quarterly report covers the second calendar quarter of 2011. According to the 10-Q form, the company’s balance sheet a/o Jun. 30, 2011 contained:
- cash reserves in excess of $1.75 million;
- negative working capital to the amount of $2 million;
- long-term liabilities of $45 million, mainly comprised by preferred shares and warrants;
- approximately $1 million in revenue generated from manufacturing, license and lab fees;
- operating loss of $336 thousand;
- a giant net loss of $30 million.
The enormous size of the net loss is entirely due to the hugely negative change in the fair value of both warrants and preferred shares derivatives. As a result, ELTP’s net loss per share amounts to $0.13 – a circumstance that could place on red alert not only the company’s 189 current stockholders, but also future investors.
