Elite Pharmaceuticals (OTCMKTS:ELTP) reported a 10% increase in quarterly revenue as growth in its amphetamine and opioid addiction treatment products helped offset changes in the market for lisdexamfetamine, company executives said on an earnings call.
Revenue for the fiscal second quarter ended Sept. 30, 2026, rose to $40.1 million from $36.3 million a year earlier, Chief Financial Officer Carter Ward said. Gross profit increased to $16 million, or 40% of revenue, from $14 million, or 39% of revenue.
Ward said the company’s revenue mix was more diverse than it was in the June 2025 quarter, when higher lisdexamfetamine prices helped produce approximately $40 million in revenue. Prices subsequently fell as competitors entered the market, although he said lisdexamfetamine volumes have increased and the market has shown signs of stabilizing.
Research and development spending rose to $1.9 million from $1.4 million in the year-earlier September quarter. Ward said the increase reflected greater product development activity.
Cash Flow and Balance Sheet
Cash provided by operations for the six months ended Sept. 30 fell to $7 million from $19.9 million a year earlier. Ward attributed the year-over-year decline partly to stronger lisdexamfetamine margins in the prior period, before the generic market correction.
He also said changes in receivables and inventory affected cash flow between the June and September quarters. Receivables and inventory fell by a net $6.5 million in the June quarter, boosting cash flow, then increased by $4.8 million in the September quarter as revenue rose.
Elite ended September with $35 million in cash, up from $30 million at March 31. Working capital rose to $103 million from $95 million. Ward said the September figure included $7.6 million in non-cash derivative liabilities classified as current liabilities, which were not included in the March working-capital calculation.
Excluding non-cash derivatives, total liabilities fell to $14.5 million from $22.1 million at March 31, Ward said.
Pipeline and Facility Expansion
Chairman and Chief Executive Officer Nasrat Hakim outlined plans to diversify beyond Elite’s attention-deficit hyperactivity disorder products. He said lisdexamfetamine, generic Biphentin, and immediate- and extended-release mixed amphetamine salts account for approximately 80% of revenue.
Elite has filed an abbreviated new drug application for an undisclosed anticoagulant and expects an approvable status in 2027 and a launch in 2028, Hakim said. He said the FDA’s target action date remained March 2027 and that negotiations concerning a launch agreement with the brand company had concluded.
A second anticoagulant is in advanced development, with a bioequivalence study expected to begin in the first half of 2027. Hakim said Elite also plans at least one bioequivalence study for a type 2 diabetes product in that period. He said the company’s diabetes pipeline had grown from three products to four.
For an undisclosed anticonvulsant, Elite has completed a successful bioequivalence study and is compiling an application for FDA submission in the first quarter of 2027, pending stability data, Hakim said. He also said the company’s generic extended-release oxycodone product remains under FDA review and has a specified entry date, though he cautioned that further litigation was possible.
To support its commercial products and pipeline, Elite intends to lease additional space in a building where its packaging operations are already located. Hakim said the lease had not yet been signed. The expansion would increase the company’s good manufacturing practice space to approximately 130,000 square feet from 85,000 square feet, he said.
Offer and Nasdaq Plans
Hakim said Elite’s board declined a verbal offer conveyed by its bankers from a company that had evaluated the business. He did not disclose the proposed price. The board chose to pause negotiations and focus on the commercial business, pipeline and facility expansion, while leaving the door open to renewed discussions in 2027.
Elite had not yet submitted its Nasdaq listing application, Ward said. He said the company needs a shareholder meeting and director elections and expects to apply in the first quarter of calendar 2027. Hakim said he expects a listing by March 2027, barring unexpected developments.
Ward also addressed a material weakness in internal controls. He said the company is working on documentation and testing and expects to have the process in place by April 2027, ahead of an independent internal-controls audit required for fiscal 2028.
About Elite Pharmaceuticals (OTCMKTS:ELTP)
Elite Pharmaceuticals is a specialty pharmaceutical company focused on developing, manufacturing, and marketing generic and branded drug products. Its work includes oral dosage medicines, with an emphasis on controlled-release formulations and products designed to address medication misuse. The company has developed and commercialized prescription products in several therapeutic categories, including treatments for attention-deficit/hyperactivity disorder and pain. Its business also includes advancing additional products through development and regulatory review.
