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Elite Pharmaceuticals Stock Plunges Post Q1 Earnings, Revenues Fall Y/Y
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Shares of Elite Pharmaceuticals, Inc. (ELTP - Free Report) have lost 15.7% since the company reported earnings for the quarter ended June 30, 2026, underperforming the S&P 500 Index’s 0.6% decline over the same period. The stock has also plunged 21.2% over the past month, while the S&P 500 gained 2.9%.
Elite Pharmaceuticals’ Earnings Snapshot
For the first quarter of fiscal 2027, revenues declined 19.5% year over year to $32.4 million from $40.2 million. Net income was $5.9 million against a year-ago net loss of $5.9 million, while basic and diluted earnings per share improved to $0.01 from a loss of $0.01 per share. Operating income fell 65.3% to $7.5 million from $21.7 million.
Elite Pharmaceuticals operates as a single reportable segment, but its revenue mix showed divergent trends. Direct wholesaler sales decreased 13.8% to $16.4 million, while indirect wholesaler sales fell 24.2% to $15.7 million. Total ANDA revenues were $32.1 million, down 19.2% from $39.8 million, while licensing fees fell to $0.2 million from $0.4 million year over year.
Scheduled-product manufacturing fees declined 28.5% to $27.8 million, whereas unscheduled-product manufacturing fees increased to $4.3 million from $0.9 million year over year.
ELTP’s Other Key Business Metrics
Gross profit declined 50.4% year over year to $13.5 million, with gross margin contracting to 42% from 68%. Cost of manufacturing increased 45.1% to $18.8 million from $12.9 million, reflecting higher product volumes. Operating expenses rose 8.2% to $5.9 million, including a 21.3% increase in research and development (R&D) expenses to $2 million and a 4.3% rise in general and administrative expenses to $3.5 million. The higher R&D spending reflected costs associated with a successful pivotal bioequivalence study and an ANDA filing during the quarter.
Operating cash flow was $10.1 million compared with $14.8 million a year earlier. Cash stood at $38.9 million as of June 30, 2026, up from $29.8 million as of March 31, 2026. Management said that liquidity would primarily support new products, product-line expansion and facility improvements intended to accommodate additional products and higher production volumes.
Elite Pharmaceuticals Inc. Price, Consensus and EPS Surprise
Management attributed the revenue decline primarily to increased generic-market competition and lower average net selling prices, particularly for lisdexamfetamine, Elite Pharmaceuticals’ generic Vyvanse product. The year-ago quarter benefited from higher pricing shortly after the product entered the generic market. Management said that the market subsequently moved toward a steadier pricing environment, while volumes continued to trend higher. Cost of manufacturing also increased as product volumes rose, particularly for lisdexamfetamine and the Amphetamine IR and ER lines.
CEO Nasrat Hakim said that overall volume increased 14.75% from the year-ago quarter, including a 10% increase for lisdexamfetamine. Hakim added that market share increased across ELTP’s major lisdexamfetamine, Amphetamine IR, Amphetamine ER and Naltrexone products.
ELTP’s Outlook
Elite Pharmaceuticals did not provide formal financial guidance. Management nevertheless pointed to pipeline development as the primary avenue for future growth. Methadone was launched in April, while Ropinirole ER was launched in July.
ELTP also reported positive pivotal bioequivalence results for an undisclosed anticonvulsant product and filed an ANDA for an undisclosed anticoagulant in June. Generic OxyContin ER remains under FDA review, with management noting that an unresolved anti-abuse testing issue must be addressed before a potential August 2027 launch.
Elite Pharmaceuticals’ Other Developments
Elite Pharmaceuticals continues to evaluate strategic alternatives involving a potential buyout as well as a Nasdaq uplisting. Management said that the company remains open to an acquisition, being acquired or proceeding independently, but expects to pursue Nasdaq regardless. Hakim indicated that, based on the current timetable, an uplisting could be completed or nearing completion around February 2027.
ELTP is also considering manufacturing expansion that management said would require roughly two years to prepare and qualify additional space and equipment for future products.
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Elite Pharmaceuticals Stock Plunges Post Q1 Earnings, Revenues Fall Y/Y
Shares of Elite Pharmaceuticals, Inc. (ELTP - Free Report) have lost 15.7% since the company reported earnings for the quarter ended June 30, 2026, underperforming the S&P 500 Index’s 0.6% decline over the same period. The stock has also plunged 21.2% over the past month, while the S&P 500 gained 2.9%.
Elite Pharmaceuticals’ Earnings Snapshot
For the first quarter of fiscal 2027, revenues declined 19.5% year over year to $32.4 million from $40.2 million. Net income was $5.9 million against a year-ago net loss of $5.9 million, while basic and diluted earnings per share improved to $0.01 from a loss of $0.01 per share. Operating income fell 65.3% to $7.5 million from $21.7 million.
Elite Pharmaceuticals operates as a single reportable segment, but its revenue mix showed divergent trends. Direct wholesaler sales decreased 13.8% to $16.4 million, while indirect wholesaler sales fell 24.2% to $15.7 million. Total ANDA revenues were $32.1 million, down 19.2% from $39.8 million, while licensing fees fell to $0.2 million from $0.4 million year over year.
Scheduled-product manufacturing fees declined 28.5% to $27.8 million, whereas unscheduled-product manufacturing fees increased to $4.3 million from $0.9 million year over year.
ELTP’s Other Key Business Metrics
Gross profit declined 50.4% year over year to $13.5 million, with gross margin contracting to 42% from 68%. Cost of manufacturing increased 45.1% to $18.8 million from $12.9 million, reflecting higher product volumes. Operating expenses rose 8.2% to $5.9 million, including a 21.3% increase in research and development (R&D) expenses to $2 million and a 4.3% rise in general and administrative expenses to $3.5 million. The higher R&D spending reflected costs associated with a successful pivotal bioequivalence study and an ANDA filing during the quarter.
Operating cash flow was $10.1 million compared with $14.8 million a year earlier. Cash stood at $38.9 million as of June 30, 2026, up from $29.8 million as of March 31, 2026. Management said that liquidity would primarily support new products, product-line expansion and facility improvements intended to accommodate additional products and higher production volumes.
Elite Pharmaceuticals Inc. Price, Consensus and EPS Surprise
Elite Pharmaceuticals Inc. price-consensus-eps-surprise-chart | Elite Pharmaceuticals Inc. Quote
Factors Influencing Elite Pharmaceuticals’ Results
Management attributed the revenue decline primarily to increased generic-market competition and lower average net selling prices, particularly for lisdexamfetamine, Elite Pharmaceuticals’ generic Vyvanse product. The year-ago quarter benefited from higher pricing shortly after the product entered the generic market. Management said that the market subsequently moved toward a steadier pricing environment, while volumes continued to trend higher. Cost of manufacturing also increased as product volumes rose, particularly for lisdexamfetamine and the Amphetamine IR and ER lines.
CEO Nasrat Hakim said that overall volume increased 14.75% from the year-ago quarter, including a 10% increase for lisdexamfetamine. Hakim added that market share increased across ELTP’s major lisdexamfetamine, Amphetamine IR, Amphetamine ER and Naltrexone products.
ELTP’s Outlook
Elite Pharmaceuticals did not provide formal financial guidance. Management nevertheless pointed to pipeline development as the primary avenue for future growth. Methadone was launched in April, while Ropinirole ER was launched in July.
ELTP also reported positive pivotal bioequivalence results for an undisclosed anticonvulsant product and filed an ANDA for an undisclosed anticoagulant in June. Generic OxyContin ER remains under FDA review, with management noting that an unresolved anti-abuse testing issue must be addressed before a potential August 2027 launch.
Elite Pharmaceuticals’ Other Developments
Elite Pharmaceuticals continues to evaluate strategic alternatives involving a potential buyout as well as a Nasdaq uplisting. Management said that the company remains open to an acquisition, being acquired or proceeding independently, but expects to pursue Nasdaq regardless. Hakim indicated that, based on the current timetable, an uplisting could be completed or nearing completion around February 2027.
ELTP is also considering manufacturing expansion that management said would require roughly two years to prepare and qualify additional space and equipment for future products.