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Elite Pharmaceuticals secures FDA nod for generic drug

EditorNatashya Angelica
Published 20/05/2024, 16:38
ELTP
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NORTHVALE, NJ - Elite Pharmaceuticals, Inc. (OTCQB:ELTP), a specialty pharmaceutical company, announced today that it has received approval from the US Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) for Methotrexate Sodium 2.5 mg tablets. Methotrexate is an antimetabolite drug used to treat various conditions and will be marketed under the Elite Laboratories, Inc. label.

The approval marks a significant milestone for Elite Pharmaceuticals, which specializes in developing and marketing niche generic products. The company operates a cGMP and DEA registered facility in Northvale, NJ, for research, development, and manufacturing.

According to data from IQVIA, the generic Methotrexate market has reported annual sales of $64.3 million for the twelve months ending March 2024. Elite's entry into this market is expected to contribute to its portfolio of immediate-release and controlled-release solid oral dose products.

Elite Pharmaceuticals' focus on niche generic products aligns with the industry's trend towards providing cost-effective alternatives to brand-name medications. The company's commitment to manufacturing and distributing these alternatives is reflected in its product lines and partnerships with third-party pharmaceutical marketing and distribution organizations.

The press release from Elite Pharmaceuticals includes forward-looking statements regarding the potential effects of the FDA approval on the company's future results and performance. However, it also cautions readers about the risks and uncertainties that could affect actual outcomes, which are detailed in the company's filings with the Securities and Exchange Commission.

This FDA approval represents another step forward for Elite Pharmaceuticals in expanding its product offerings and enhancing its position in the specialty pharmaceuticals market. The information provided in this article is based on a press release statement from Elite Pharmaceuticals.

InvestingPro Insights

Elite Pharmaceuticals, Inc. (OTCQB:ELTP) has recently received FDA approval for Methotrexate Sodium 2.5 mg tablets, a development that could potentially bolster its financial performance. In light of this event, it's valuable to consider key financial metrics and insights provided by InvestingPro.

InvestingPro Data for Elite Pharmaceuticals indicates a market capitalization of $152.76 million USD, reflecting the company's current valuation in the market. The P/E ratio stands at 9.53, suggesting that the stock is trading at just under ten times its earnings, which could be seen as a sign of investor confidence in its earnings potential. Moreover, the company has experienced a robust revenue growth of 42.58% over the last twelve months as of Q3 2024, signaling a strong upward trajectory in sales.

An InvestingPro Tip that stands out is Elite Pharmaceuticals' high return over the last year, with a 1 Year Price Total Return of 308.57%. This impressive performance could be indicative of the company's potential for continued growth and profitability, which is further supported by the fact that the company has been profitable over the last twelve months.

Another InvestingPro Tip to consider is that Elite Pharmaceuticals operates with a moderate level of debt. This suggests a balanced approach to leverage, which can provide the company with the flexibility to invest in growth opportunities while maintaining financial stability.

For readers interested in deeper insights, there are additional InvestingPro Tips available for Elite Pharmaceuticals at https://www.investing.com/pro/ELTP. And for those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 more InvestingPro Tips listed in InvestingPro that can provide further guidance on the investment potential of Elite Pharmaceuticals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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