{"id":4440,"date":"2014-04-23T13:15:44","date_gmt":"2014-04-23T13:15:44","guid":{"rendered":"\/?p=4440"},"modified":"2014-04-23T13:15:52","modified_gmt":"2014-04-23T13:15:52","slug":"elite-pharmaceuticals-inc-otcmktseltp-hopeful-after-press-release","status":"publish","type":"post","link":"\/articles\/elite-pharmaceuticals-inc-otcmktseltp-hopeful-after-press-release\/","title":{"rendered":"Elite Pharmaceuticals, Inc. (OTCMKTS:ELTP) Hopeful After Press Release"},"content":{"rendered":"\n
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\"eltp_chart.png\"During the last month Elite Pharmaceuticals, Inc. (OTCBB:ELTP<\/a>) had quite the unpredictable run on the stock charts, from trim dollar volumes and almost no changes for a week, to large drops, just to rise again the next day. Seemingly, this movement continues, this time with a positive development for ELTP<\/a>. Yesterday the ticker gained 13% in share price, closing at $0.386, and registering a dollar volume of $758,000, almost the amount of the previous three days combined.  <\/p>\n

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The reason for this new enthusiasm seems to be the latest press release from the company. ELTP<\/a> announced yesterday the issuance of a patent titled with the lengthy “Abuse-Resistant Oral Dosage Forms and Method of Use Thereof”. The new patent serves to expand the intellectual property of the company’s opioid deterrent technology, and is the fourth patent of that line. <\/p>\n
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The last time the company had a significant rise was April 14, and they couldn’t sustain it, despite some meaningful positive developments. On that day ELTP<\/a> announced a financing deal with Lincoln Park Capital Fund, LLC (LPC) for up to $40 million. We remind you that Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS), another biotech startup, forged an agreement with LPC last month as well. <\/p>\n

The agreement with ELTP<\/a> carries some restrictions, namely that there is a limit of 800,000 shares that LPC may buy on any given day, that the total sum of such share purchases cannot exceed $760,000, and that LPC is not allowed to own more that 9.9% of ELTP<\/a>‘s common stock. The money would be reportedly used by ELTP<\/a> to develop its products and for “general corporate purposes.”<\/p>\n

It should be noted that the nature of the company’s products is such that long and costly research goes hand in hand with them. Additional funding may be more of a necessity, rather than an opportunity for bigger things, as it may seem at first. ELTP<\/a>‘s products are, at best, a long-term investment. In the immediate future it is likelier to bring the company more liabilities than returns. ELTP<\/a>‘s last reported financials, for the quarter ended December 31, 2013, seem to support this possibility:<\/p>\n