ELTP - Earnings call transcript Q1 2021 | Elite Pharmaceuticals, Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Elite Pharmaceuticals Conference Call. At this time, all lines have been placed on listen-only mode.

Before management begins speaking, the company has the following statements. Elite would like to remind their listeners that remarks made during this call may contain forward-looking statements that involve risks and uncertainties and are subject to changes at any time, including but not limited to statements about Elite's expectations regarding future operating results.

Forward-looking statements are made pursuant to the Safe Harbor provisions of the federal securities laws and represent management's current expectation. materially. differ may results Actual Elite disclaims statements revise forward-looking update obligation as required to except or by its any law. SEC, Elite More complete be with Elite's reports can elitepharma.com section. under and risks available the the website files Investor at information regarding found forward-looking in statements, which on are Relations uncertainties the these Elite review documents encourages you carefully. to the your host, to that it now is over covered, my floor With pleasure to turn Mr. Executive Officer of Pharmaceuticals. Nasrat President and Chief Hakim, Elite Sir, the floor yours. is

Nasrat Hakim

give thank CEO. you Dianne. I'll the have Good some will financials, name of and morning, ladies a with Mr. our and Carter today. company's I and Thank the earnings Mr. that joining floor. you, My and the for after come gentlemen submitted is am you Ward, answer Ward Kate. us questions Elite's which you to summary This a call Hakim, Nasrat us CFO, President of back our corporate update and is

Carter Ward

as Friday, you, always for ended Thank to in June our XX, XX, the we August today. XX-Q quarter XXXX. Nasrat filed calling for XXXX, and thanks everyone Last

a section on which elitepharma.com, quarter The of websites other as to filings. is means as links year. our the the XXXX we're the website, first So fiscal quarter year is our on available and sec.gov Q of fiscal March our Investor that June well is that provide

Q the other analysis, the through please a elitepharma.com key get the providing the gone yet, I'd review of financials, insight Today, context sites. the We like into some any parts haven't of numbers. copy from and to or of

that followers. address I'll and the comments questions to shareholders are do questions related best my to we've Elite and financials. those always, received As from

June that's the and from year. $X.X our by quarter quarter, increase increase to revenues. million saw a Also Phentermine same to where product a was XXXX XXXX consistent quarter compared last quarter quarter growth that's Naltrexone a consecutive release compared P&L, for for and $X.X has one -- revenues to was triple year March and well. generic XXXX steady The Adderall, as XX also launched highest-to-date Adderall, Let's of the digit quarterly immediate the as fifth which $X.X for year. strong million numbers was revenue of double XXX% or clearly June strong reported million we last Isradipine to compared Elite, our performer for also very was extended with the this growth been last revenues. start the ended comparable the of The June to quarter Revenues prior on compared contributing as year generic or the release driven we the of it's

encompassing four year, this quarter Over of averaged revenue quarters fiscal the growth the quarter the last quarterly the five XXXX XXXX of prior of plus to of first year. year, as XXX% compared fiscal quarters, comparable the we've the

Over increase the an same in XX%, the of when revenues a our with we almost that's increased have on quarters, five quarter-to-quarter period, of average basis, five-quarter four quarter-to-quarter. revenue looking

these supply potential even most the is of manufacturing Lannett fifth revenues year. have Much should growth, of market Lannett to we Isradipine. show have growing been continue revenues XXXX that to products market. personnel, this Adderall, the alliance should revenues one and extended future -- doubling upside. done a quarter, the was to our continues but prior our March pandemic. its is quarter, and of on future of the current due They but all Elite's extended to but for phenomenal slightly this over launched as immediate record growth has expanding increase, a factors well just Isradipine -- partner we size, just three Generic, launched having run generic release for that credit continue we have job also and more an more generic numbers, Isradipine producing quality for takeaway Those prospective done COVID-XX standout retrospective, not above our record and Generic well. Both June upside particularly during performance its all small all there are competitive than consecutive significant contributed ensuring in partners. in for chain been based record contributions are than lab predict volumes, penetration the potential. and marketing release as their a Adderall still cylinders three provide lines all to have The would share. job release establishing the relatively year. results the in Adderall only on for the one with market excellent been immediate upside so during significantly the more as on also as products product factors expect future XX and revenues Adderall market future to All date three has year products responsible is is and market the products product of achieved product release Elite's product the levels. which contributing not has from that but upside our the the three All quarterly that our are strong lines on

operating loss line, as XXX,XXX operating Moving quarter the of down that's prior the you'll we year. and an $X.X profit million a income the to for P&L in had opposed of see to the

growing meet and $XXX,XXX to receivables and to due are inventory and We by growing this receivables, both increased demand financials. Since have balance million, $X.X inventories a year-to-year were our are stock our naturally and So reflected that's The to billings profitability visibility need more sheet buy to into receivables $X up the indicative in revenues. our under a increased turnaround higher March XXXX, some just in inventories million is how context customers. our improvement specifically, provide payables of and on basis.

and is by in side, those accruals expect the up these increase less than and revenues also approximately payables but are the inventories working well operating which to our natural that as increase our $XXX,XXX, increase the results profits the on flow items note to the position statement, operations cash capital in shows is on receivables. reported from with statement. in positive that flow, cash strengthening as our operating those On of P&L This

income, equity and as this sales income Finally, our income overall the of sheet, other on of includes of our our almost operating $XXX,XXX which our state balance all combined since March due million derivatives items by XX, increased net such was to with expense and $X.X NOLs.

in and all it direction. moving at however, metrics a So, positive ratios you they're look financial the

section. of address a received there them couple I instead till does figured were of I Finally, which and the questions Q&A -- Nasrat now I'll waiting

No as warrants Lincoln to Park most answer to ratchet no shares to sales any will done Park The effect J that specifically And given of Series the for is, issue relation first the is Series Capital? not no J any Lincoln specifically sales shares to preferred there under to transaction. ratchets, -- the with XXXX whether ratchets Lincoln To the to do is Park there to Series Park preferred stocks Park warrants from ratchet Park shares ambiguity Capital. Park the ensure to or under ratchet question the of X July or to Nasrat further recent shares the and of ratchet waived an And raised Lincoln sales from was the was has applicable transactions a XXXX. exclude be any the to of to shares any Lincoln The J Lincoln Series of line warrants agreement. ratchet had from given Lincoln Hakim and to the with in transaction. preferred preferred for equity and warrants stocks no J that relating

is XX.XX. waiver XX-Q the -- Q Now the it's to attached Exhibit

So it's document. public a

Elite X co-development profit the times party. the were a to. this a year. SunGen's offer any sale second better the to translates these which with relates of position full were then are assets. and SunGen same rights offered as rights That Elite, dollars, future they achieve Elite's and have third to of complicated consummate a earned a regardless sale to received earnings in in a to Mikah co-development facet say these earnings available at the by cash the for agreement priorities. but Elite's have generic of this deal Mikah. in relationship position was that will that same these sales one the receive may I've Board are determined the SunGen by we the X cash situation sell estimated declined terms have consummated we of is sell not could price decided asset of in a cash rights can't was when to for Elite. amount agreement being remains same comments success agreement its to and demonstrated resolve partner to and products as the was if it Mikah. between This SunGen of Hakim, the Mikah will That point which Elite The selling prior relationship sell the owned from SunGen as as they Elite's company rights SunGen of Elite SunGen SunGen the of to Elite. to to the SunGen SunGen have this to they some pay cash opposed of this hope sell for its Adderall million to party, was held the in to not to transaction shareholder of standpoint, to the Elite assets of times by Certainly of several from co-development Nasrat to may that business. SunGen asset, future, position a other did much entitled Elite this is earlier SunGen's question is offered to for profits largest buy products, partner. Subsequently, equal SunGen's something these Elite's acquiring with time about is to the they chosen to Pharma, from overall in acquire the they benefit also rights, our to profit a just negotiated Adderall. held rights sale between Rather accordingly with is at our still I Elite a the desired part half by to which to third and that's offer. and if sold position offer than

now President, to would Chairman give his and an like our Mr. Hakim update comments. Nasrat and CEO So and

Nasrat Hakim

financials. thank for Carter you, fantastic Thank and the you

row for the finally, this XXXX going QX, to that is couple And to quarter-to-quarter and entire our year XXXX continue million throughout comparable row. revenues revenues well. times equivalent in revenues In in a $XX XXXX. me $X.X equivalent went XXXX, to as In the substantial very are revenues And a the million, quarter a XXXX, highlight between our $X.X that $X.X year, revenues things expect In QX to that's revenues a X.X the revenues increase profit, X.X And to Elite's first Regarding -- million. and and quarter quarter for Carter were compared entire the previous substantial fiscal for XXXX. million nicely. XXXX from five trend up in the $XX is of increase articulated let that our year-to-year. in year fifth I that's year to of increased the this XXXX,

fit sustained and safe so profitability. they the protected Elite, and today's affecting on. and rules profitable is to new and this implemented not start each pandemic ensure at We that's other. suppliers adjust of the employees to a and is environment. finally to but had our us update of COVID-XX are safety only beginning that marketing associates doing are our and are I'll sales because all policies We and with to protecting and all We've business

the more product, employees deficit ER monitoring distancing, proper number we guidelines ensure to do We manufacturing whenever of We from proximity. back are and and to everybody's that air drug employees, option at standards have staggered protection the suites and to feel are to following space used when our an All that temperature been our to rooms wearing to and for and to are the flow and CDC also associates IR separation the the for We employee shortages, training, there disorder going two and filtration. the people increased less time this local especially hands the given entails to in obligation plan for washing and masks implemented non-essential We and attire, impossible which stockholders patients work addition HEPA attention per social includes Amphetamine in children that employee federal top appropriate air home. no hour created monitoring, part school. the hygiene, our give recommendations. shift the of but possible, in limited and to

home, at do is So, a of regulatory have we small affairs, for medical work any your concerns him. and have I work affairs We wife we do petitioned do when outside that are do and redundancies, Carter, that, accommodate -- advising have get don't of from work are keep him to you we employee some company. we can his that accounting, to could and lots decided we except sick

but happens through, to is the has So, knowledge the they employees CFO, people he lies him carry anything him. and with helping institutional will business. with the critical us if him, two role can Carter affect

So of we if any our to suffer. happen senior staff, anything will

that We but raw could be it and to not could to too. material slow like happen Now material. do at their we Lannett marketing upon precautions are be definitely to all okay, will and to and there to down employees be and somebody affected to are gets else API productivity able have because the we hope COVID-XX, sure of could the all may make be of beneficiaries I mentioned API affected receive would and Elite, Sales work could wish of I and will that with or things they then protected partners our and competitor our the somewhere by, could Raw it. affected this, and consequences. be be suppliers, doesn't not I our fair get become it anybody us okay? else's take by balanced,

Speaking end projections enough on and you updated sales secured of throughout DEA API this this, we the to questions Lannett's we have quota suppliers, had year. from the as before support of API I

the October. We will next for be submitting in DEA year sometime to another proposal

Now due basis. to monthly that we supplier to with delivered will and orders API the placed the on limited be staggered working capital us

is in good facility very Our a shape.

We we proud have that of. a very facility very are nice

of of has improvements re-blended, upgrades year facility, speed expanding foot purchased new XX% now Press more We to will upgraded packaging and on higher XX We increase hundreds our spending be Tablet line, and a capacity. dollars the this it capacity. a thousands cubic so

material an help a more in to systems. SAP us expert and streamline utilizing are we more We and our hired full-time employee, and SAP management

and the in that's front, commercial in was the just eight speed, It was the we not April Amphetamine not job was by so is we Eight March approved an are Walgreens contract three scrambling is was IR. record us. supplying an order largest to and On first get India, lot am XX an of was will made but transfer work With from that's penetrate need where Amphetamine supplier. within site time issue Today you time today have it signed December with actually you we continue to January and happy should I much us in updated on that and started in revenues, where excellent around out here, they did for we by is ago job has Loxapine if and Amphetamine ER people December, ago. our Lannett placed here market should launched through I year-over-year. players supplying that now months was the time, not really yet and increasing will months. of credit launched customer. it. start multiple the also the contracts time our approval and by get was the -- long working our done profits it's happening, got DEA, able we with API to Lannett say about they and they be on not but ago, Last as sorry, what this Lannett for did product we be June sales February March, IR launching remember, staff in our we quota supplier in excellent Loxapine, and for in so got a deserve only months and ER an it it first work bring they a approval had the very marketing was was Christmas it done has quarter the the that. with API -- of and

shortage be identified soon and we IQVIA product. a ANDA, and a partner marketing it, ours. on sales filed SunGen. The including has there FYI, and product list. we As was with ANDA's approved we while that receive is is and for already developed product Loxapine $X will partner Antibiotic have about are as million launching Loxapine for and FDA's been tablets our this and four

a designation, in the with As completed back yet, be minor will filed letter SunGen's that SunGen Elite per the they the do name, in agreement complete on has while response we October. FDA plan ANDA the September received by minor response not or a actually. a with amendment was to work

will previously. working We as partner and Glenmark you we as growth are the sales ANDA. to and approvals is executing on is the development, on system launching product. discussed Elite plan, Lannett TAGI doing well. progress product central our antibiotic doing updated have getting And and In and product job great nervous of marketing new keep are that we its

issues product on the Let forward and make product Elite. know-how SunGen is with obligation I trials to clinical else. with the to with this very has here move file and can the optimize formulation product me This conduct no now this the and that. We because clear some questions pause got Elite itself resolved and by anybody

addressed and Dianne questions the to address will try Mikah Carter You've and the questions sent rest. ratchet. few we into that few categories, I grouped already quite a

to The Capital were not of money? expected of cheapest second really money. method Capital. Park about them us lot many Capital price follow Park $X.XX is Lincoln Why is set cost the and all a similar the simple. explain of and -- lower way raise met Park Elite's choosing to Lincoln they borrowing with raise Why We use institute as Lincoln a than such formula. answer best questions of general The contract? in Banks and please money, the Elite is in institutes non-dilutive money.

we discount want so $XX ask to a they're price if to $X.XXX. $X.XX, stock the also it example, an raise for demand financial buying And you products premium as on products, new institutes way and is they them assume a the in stock going were for that and to going these R&D to to So the are warrants that price. sell million equal

you raise and in shares more fee at in also it's actually up shares million also if XX% give XXX a not you transaction. million, bank million million now the And to million. the $XX $XX another facilitating billion raise to $XX want charges XXX million in for So order have we'll warrants, because shares shares to that's X.X $XX than $X.XXX, it's

will for it me you Carter us earlier that raise, untantable shares an made give today. billion if me than that's for with a X.X cost these million more let So $XX Now institutes, go we analysis

is seven shares years, million. years through XXX Over XXX ago we have raised million the the $XX past million The even company. seven joined starting Park. before I Lincoln sold This

billion XX raise for with why you shares. when So million shares versus Lincoln million $X.X go $XX capital to want XXX with you can million wouldn't

try So going for trying of use against. Nasrat capital of That's reasons money, they give said to Multiple you're company. account every means that me when to no, do example, way I non-dilutive Elite, have get co-sign now money lining I single why bank for Bank assets and free and working such it you up for a lend to our Elite, to at was money just too are to Hakim borrow you people by that ton leveraged Institute them have Carter someone want as when you to unless where require an co-sign borrowing and a you're not they an to the money? for from what does to because

XXX these minimum for trading share lose if some pharmaceutical $XX XX. have we default would or and Second, per company, a Chapter payments, at we Akorn X they Chapter on to was file million shares bankruptcy had we'll form the outstanding. of at

we're and to to they called they money as on So it's what they'll instead have sure was from the they to okay? and other and $X.XX, company outstanding. and for is high to $XX the doing judge decided $X raise themselves the of tech the deal they doing the good cannot them very to basically wishing debtors. company And shares deal Thursday, money that deal The XXth and buy selling a Lincoln pay went Park stockholders borrow XXX companies. a are award Elite. will would the been million Today, billion and Now stock stock this borrowed. that $XX maybe the very aren't good diluted a shares The diluting have

signed Our not deal, when I the signed they where first the the Dianne former thing they for credit. -- CEO, it best it here maintained because all but Carter is and Elite. first I the deserve was

complaining pipeline like? that that. they or email at. do Stock industry? had I you about you our are the to The stock. future, does so of it? why than own times am low? going they is of what -- third million and and -- aware our to we Dianne trading rest shares own stock Elite's do compare how our under X more with the painfully that R&D How sends set look person an of every is million price, I R&D shares are to do stock What What for XXX stock questions X do And

XXX a one there wave it's of get are get doing lot we magic and I And a up. go but to I could it was things to more. I killing wish and wish up, So times me it

and let's industry, the at happening on is happened? are So So we for the in we the and maybe going where to first look going we're thing in put industry, the define you, is the things Pfizer's I industry now others, the see stay future? want brand with go What what are generic industry. to in perspective not talking stockholders generic what's about and the talking about do

at a billion. owe gained like they not they and is person loss have of last any world the through a $XXX,XXX, the years today, was it's P/E years they about at a owns largest $XX these the five are generic ago ago, bit $XXX,XXX. do negative they today, years Mylan, which were they Amneal five in business. and $XXX just $XX past share. it's over dissolved a and Teva five negative down a generic at years lot to Paragon and to Looking operate per $XX company's of of for whole job within best largest about Valeant outstanding years operating $XX Lannett, P/E Lannett, are they for an of, company gone it other the they I'm have [indiscernible] they the house five go and purchased I ago, naming to product year five billion biggest can a today $XX decision, P/E $XX, dissolve also The years share The on Pharmaceutical are they the they $XX and -- all bucks. the go per and generic -- one and companies world, company they earnings have doing company actually billion you dozen they the Sandoz, the rough. today. almost $XX the and think think that's and $XX Dr. us, acquired biggest P/E have XX. loss $XXX,XXX we Pharmaceutical, been the with impacts for there ago, and is have $XX actually have time XXX and in five ratio, industry This today, market Watson have years they most at pharmaceutical starting million second the ratio. X Insys two was ratio They Endo $X very in At $X they share, five to mortgage $XX and today. became again they who worth of really ago, about a that's from have earnings they The to a ago, is they $XX. XX $XX ratio, no today and worth $XX, earnings. Akorn about negative years industry $XX lose $XXX little down time $X.XX five pharmaceutical bankrupt, $X.XX to ratio. $X.XX, are were negative were Reddy. down Reddy they $X.XX Watson the P/E the Dr. per their of consolidation they cap Actavis through going $XX

Elite me that meet sector payroll with comply requirements, could money I we wants the best on, go is for has offshore we thriving. our family. the said lights You know, DEA pay and I everybody is and to stock we share only been with as FDA we sector ever a requirements, suffering requirements, we're hear not have as bankrupt, that and not roof making we and you my little news employees, our But going and survived, through that our with the

start see for maybe where two reached it's then, respect becoming we us. hopefully and will in years that three of now but cycle, going We and to and the ER us have its life profitability order fund make shifted as in to as looks infancy looks out we profitable, with to settle product survive max good outlook to to such now everything deals in the others positive considering to we've really to still is and SunGen companies for with

not we of all we're that, OTC. exist say we a would the we're if and in small soft diluted more if money a comes today we worse are us, So, off if stock industry? With we the company borrowing are gets that. did generic that borrowing -- the company no. no, than would Are after our we I manipulated. we on lender from Obviously

That's to Bulletin company. $X.XX place a at out you OTC fundamentals share, of the heck share heck moving that's have about manipulate and keep $XX,XXX the the creating fair volumes, the XXX,XXX I why $XX,XXX, anybody We hands on when in. where Board of or can talking brand and the changing low institutional and coming have $X.XX a investors have with the shares getting we

As done not later up quarter, well so off. That stock do or the quarters five where a row move. mentioned are I is and we've in did have take believe pressure yet I had we to building sooner and and this going very we

we with and conclusion and Capital, are company, profitability we the industry. stabilized financial go say and have our for in we better at work ourselves Let manufacturing in the are products, ever financial We've have solid in the R&D. Park doing we and most avenue through with shape buy or an me facility by compliance excellent that than to GMP partners sources history best Lincoln

are and targeting profitable profitability. sustained We

the $XX We earn pay on. have tax million $XX we that first that meaning million taxes in federal credit, we don't

very We little have debt.

at about if you cap, look at they're look we're at running at you XXX%. our Teva, X%, If running debt-to-market

to and NASDAQ, and critical spite through Our out our has just have for I our our best concludes remedy me another or no of Thank in has factors I hard news past, This for will meeting. get not stock have we for sort to and of with makes I that, up, ensure investing the profitability buy is -- you and appealing to Lincoln sales get the Park vehicle our the stock went to been or where I us deal to the get fantastic The list for us somebody company's Kate? going. very are merge in work, R&D. to the continue. us continuing moved marketing be to for have have is deal all safe. wand don't magic we're in and I that Elite, the The

End of Q&A

you, Thank gentlemen. conference call. conclude ladies This and today's does

disconnect you this time may You a phone wonderful participation. have for your your at lines Thank day. and

Elite Pharmaceuticals (ELTP) 17 Aug 202021 Q1 Earnings call transcript