Shares in Elite Pharmaceuticals Inc. (OTCBB: ELTP) stock did not react well after announcing before the opening bell its patent approval to help prevent Oxycontin abuse from the USPTO. ELTP stock opened the trading session down -11.31% at 0.149 before rallying to the HOD of 0.174, an intra-day gain of 3.57%, before closing down -12.20% at 0.1475. The patent issuance was of significant proportions and a major win for ELTP. So why then the negative trading session for the penny stock?
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ELTP Stock Chart:
Elite Pharmaceuticals announced the issuance of U.S Patent No. 8,182,836 entitled “Abuse-Resistant Oral Dosage Forms and Method of Use Thereof” on Tuesday. This patent can be used to develop abuse resistant versions of basically every much every opioid based drug and this patent further protects Elite’s proprietary formulation for abuse resistant products utilizing the pharmacological approach.
The opioid market is worth $20 billion annually. ELTP‘s closest competitor is Embeda which uses a core of Naltrexone, but that product was pulled from the market for manufacturing issues. The new patent supports Eli 216, Elite’s PH3 $800 Million, once a day, abuse resistant Oxycontin pill; the only one of its kind on the market.
About ELTP Stock:
Elite Pharmaceuticals, Inc. develops oral sustained and controlled release products. Elite’s strategy includes assisting partner companies in the life cycle management of products to improve off-patent drug products and developing generic versions of controlled release drug products with high barriers to entry. Elite has four ANDA products partnered with a sales and marketing partner; two ANDA’s have launched, one ANDA is in the process of a manufacturing site transfer and an additional ANDA is currently under review by the FDA.
Elite’s lead pipeline products include a once-daily abuse resistant opioid, and a once-daily opioid. They are sustained release oral formulations of opioids for the treatment of chronic pain, which address two of the limitations of existing oral opioids: the provision of consistent relief of baseline pain levels and deterrence of potential abuse. Elite also has partnered with Mikah Pharma to develop a new product, with Hi-Tech Pharmacal to develop an intermediate for a generic product, and a third undisclosed company to develop a branded product for the U. S. market and its territories.
Bottom Line: The PPS of ELTP‘s penny stock came within 8.4 cents of its 3 year high of 0.258 on Tuesday. Another pharmaceutical penny stock Durect Corp. (NASDAQ: DRRX) has dropped 2 cents to 0.80 since we began coverage on its shares on March 25th. Neither of these two have any likelihood of becoming breakout gainers anytime in the near future unless they become an acquisition target by one of the pharmaceutical giants.
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