Core Insights - Elite Pharmaceuticals, Inc. (ELTP) has experienced a significant decline in stock price, losing 10.7% since its earnings report for the quarter ended December 31, 2025, compared to a 0.2% gain in the S&P 500 Index during the same period [1] Financial Performance - For Q3 fiscal 2026, Elite Pharmaceuticals reported total revenues of $31.6 million, a 119.9% increase from $14.4 million in the same quarter last year [2] - Manufacturing fees rose by 128.4% to $31.4 million from $13.7 million, while licensing fees fell by 67.2% to $0.2 million from $0.6 million [2] - Gross profit increased by 111.7% year over year to $12.9 million from $6.1 million, with a gross margin of 41%, slightly down from 43% in the prior-year period [2] Operating Expenses and Income - Operating expenses decreased by 21.5% year over year to $3.9 million from $5 million, attributed to lower research and development and general administrative costs [3] - Income from operations surged to $9 million from $1.1 million in the prior-year quarter, while net income reached $18.6 million compared to a net loss of $10.9 million a year earlier [3] - On a per-share basis, ELTP earned $0.01 against a loss of $0.01 in the prior-year quarter [3] Business Segments - Elite Pharmaceuticals operates in a single reportable segment focused on ANDA (generic) products, generating operating income of $11.9 million in the quarter, up from $4.3 million a year earlier [4] Year-to-Date Performance - For the first nine months of fiscal 2026, revenue totaled $108.1 million, up from $52 million in the comparable period last year [5] - Gross profit for the nine-month period rose to $54.3 million from $22.8 million, and income from operations increased to $38.9 million from $8.4 million [5] - Operating cash flow improved significantly to $14.6 million for the nine months ended December 31, 2025, from $3.5 million in the prior-year period [5] Balance Sheet Strength - The balance sheet strengthened, with cash rising to $21.1 million as of December 31, 2025, from $11.3 million as of March 31, 2025 [6] - Working capital improved to $83.6 million as of December 31, 2025, from $45.9 million as of March 31, 2025 [6] Management Commentary - Management attributed revenue and profit growth to strong sales of recently launched Elite-label generics and broader product portfolio expansion [7] - The company has transitioned into a larger-scale generic supplier, with increased market penetration and customer reach as key drivers of improved financial performance [7] Margin Insights - Management noted that the gross margin dip compared to the year-ago quarter was due to a higher proportion of indirect sales through wholesalers, which typically carry lower margins [8] - Certain one-time costs related to new product introductions did not recur in the December period, impacting earlier quarters [8] Research and Development - Research and development expenses declined by 41.9% year over year to $1 million in the quarter from $1.8 million, reflecting a shift in resource allocation [9] - General and administrative expenses also decreased by 9.5% year over year to $2.5 million from $2.7 million [9] Strategic Priorities - While no formal quantitative guidance was provided, management expressed confidence in fiscal 2026 being the strongest year to date, with year-to-date revenue already exceeding prior full-year results [11] - The company highlighted continued investment in research and development, additional ANDA filings, and potential merger and acquisition opportunities as strategic priorities [11] - Management is also evaluating uplisting alternatives should suitable M&A opportunities not materialize [11] Recent Developments - During the quarter, Elite Pharmaceuticals expanded its generic portfolio, receiving FDA approval in November 2025 for a generic version of Ropinirole Extended-Release Tablets [12] - Earlier asset acquisitions included approved ANDAs for products such as Methadone Hydrochloride Tablets under an agreement with Nostrum Laboratories [12]

Northvale, New Jersey--(Newsfile Corp. - February 17, 2026) - Elite Pharmaceuticals, Inc. (OTCQB: ELTP) ("Elite" or the "Company"), a specialty pharmaceutical company developing niche generic products, announced results for the third quarter of fiscal year 2026, the three months ended December 31, 2025 ("Third Quarter").Consolidated revenues for the three-month period ending December 31, 2025, were $31.6 million, an increase of $17.2 million or approximately 120% as compared to the comparable period of the ...

Core Viewpoint - Elite Pharmaceuticals, Inc. (ELTP) has experienced significant revenue growth driven by the launch of its lisdexamfetamine product line, despite facing challenges from price competition in the generic market [2][7]. Financial Performance - In Q2 of fiscal 2026, Elite Pharmaceuticals reported revenues of $36.3 million, a 92.4% increase from $18.9 million year-over-year, primarily due to the expansion of its lisdexamfetamine product line [2]. - Operating income surged 135.7% year-over-year to $8.2 million from $3.5 million, reflecting improved scale and product mix [2]. - Gross profit increased by 71.7% to $14.1 million from $8.2 million, although margins tightened sequentially due to price competition and one-time wholesaler fees [2]. - The company posted a net income of $13.7 million, translating to earnings of $0.01 per share, compared to a net loss of $11 million or 1 cent per share in the same quarter last year [2]. Research and Development - R&D spending decreased by 29.5% to $1.4 million from $1.9 million year-over-year, attributed to timing rather than reduced investment [3]. General and Administrative Expenses - General and administrative expenses rose 77.2% to $4 million from $2.3 million, driven by increased sales administration needs and compliance requirements [3][8]. Market Position and Product Performance - Elite Pharmaceuticals holds approximately 8% market share in lisdexamfetamine, with 19% in amphetamine immediate-release (IR) and 12% in amphetamine extended-release (ER) [4]. - Smaller marketed products like phendimetrazine achieved a 30% market share, while recently launched products contributed modest volumes [5]. Working Capital and Financial Health - The company ended the quarter with $75.1 million in working capital, up from $45.9 million as of March 31, 2025, supported by strong operating cash flow of $19.9 million over six months [6]. - Elite Pharmaceuticals maintains low and declining debt, enhancing its balance sheet strength [6]. Management Insights - Management noted that year-over-year gains reflect the maturation of the Elite label and the rapid expansion of lisdexamfetamine, which was not part of the previous year's quarter [7]. - The increase in G&A costs is linked to the complexity of handling larger order volumes and compliance across multiple states [8]. Market Dynamics - Competitive pressures in the lisdexamfetamine segment intensified with over 10 manufacturers, leading to price erosion despite increased shipment volumes [10]. - The Drug Enforcement Administration's decision to relax quotas for controlled substances contributed to heightened price competition [10]. Strategic Focus - The company is prioritizing three core product categories: lisdexamfetamine, amphetamine IR, and amphetamine ER, due to their attractive margins [12]. - Elite Pharmaceuticals is shifting towards indirect distribution channels, which broadens market access but may lower margins due to wholesaler fees [11]. Future Outlook - Management anticipates pricing stabilization in the lisdexamfetamine market and continued growth in the generic ADHD market [13]. - Upcoming product launches include ropinirole ER and methadone, with plans to file an ANDA for an undisclosed anticoagulant generic [13]. M&A Activity - Elite Pharmaceuticals is actively evaluating merger and acquisition opportunities, with several potential partners showing interest [14].

Core Insights - Elite Pharmaceuticals, Inc. reported consolidated revenues of $36.3 million for the second quarter of fiscal year 2026, marking an increase of $17.4 million or approximately 92% compared to the same period in the previous fiscal year [2] - Income from operations reached $8.2 million, an increase of $4.7 million or approximately 136% year-over-year, primarily driven by sales of lisdexamfetamine products and strong growth in Elite's product lines [2] Financial Performance - The significant revenue growth of 92% is attributed to the successful launch of new products and overall strong performance in the company's product lines [2] - The increase in income from operations reflects improved operational efficiency and market demand for Elite's niche generic products [2] Conference Call Information - A conference call is scheduled for November 17, 2025, at 11:30 AM EST to discuss the financial results and recent business developments [3][4] - Stakeholders are encouraged to submit questions in advance of the call [3]

Core Insights - Elite Pharmaceuticals, Inc. (ELTP) shares increased by 6.3% following the earnings report for the quarter ended June 30, 2025, outperforming the S&P 500 Index, which saw a 1.1% loss during the same period [1] Financial Performance - ELTP reported first-quarter fiscal 2026 revenues of $40.2 million, a 113.9% increase from $18.8 million year-over-year [2] - Manufacturing fees rose by 115.7% to $39.8 million from $18.4 million, while licensing fees increased by 20.7% to $0.43 million from $0.36 million [2] - Gross profit surged 221.3% to $27.2 million from $8.5 million, driven by a favorable product mix and a higher proportion of direct sales [2] Operating Income and Loss - Operating income was $21.7 million, significantly up from $3.9 million a year earlier, but the company reported a net loss of $5.9 million, or $0.01 per share, compared to a net income of $0.6 million in the previous year [3] - The net loss was primarily due to a non-cash charge of $22.1 million related to the change in fair value of warrant derivative liabilities [7] Operating Expenses and Margins - Operating expenses increased by 19.9% year-over-year to $5.5 million, with general and administrative costs rising by 72.9% to $3.4 million [4] - Research and development spending decreased by 22.6% to $1.7 million due to lower product development activity [4] - Gross margin expanded to 68% from 45%, supported by sales of higher-margin Elite label products [4] Cash Flow and Working Capital - As of June 30, 2025, the company had $21.7 million in cash, up from $11.3 million as of March 31, 2025 [5] - Cash flow from operations was strong, generating $14.8 million during the quarter compared to $3.1 million in the prior year [5] - Working capital improved to $67.1 million from $45.9 million at the end of March 2025, reflecting higher accounts receivable, inventory, and cash balances [5] Management Commentary - Management attributed the strong performance to growth in Elite label product lines and contributions from newly launched lisdexamfetamine products [6] - The company emphasized that recent launches are effectively scaling in the market, contributing to revenue growth and margin expansion [6] Future Guidance - Elite Pharmaceuticals did not provide formal financial guidance for fiscal 2026 but indicated a focus on scaling recently launched generics and transitioning to direct sales under the Elite label [8] Product Developments - The company launched a generic version of Percocet in April 2025 and reported positive bioequivalence study results for a generic anticoagulant in June 2025, paving the way for a potential ANDA filing [10] - These developments enhance ELTP's diverse portfolio of niche generics, including recent introductions like generic Norco and generic Vyvanse [10]