Elite Pharmaceuticals (ELTP) investor relations material

Executive summary

• Quarterly revenue was $32.4 million, down about 20% year-over-year due to increased competition and the prior year's extraordinary Vyvanse launch, but results were steady compared to the previous three quarters.

• Operating profit was $7.5 million, a 65% decrease from the prior year, mainly due to lower margins on generic Vyvanse sales.

• Net income was $5.9 million, reversing a prior year loss, aided by a favorable change in derivative warrant valuation.

• Market share for major products, including lisdexamfetamine, amphetamine IR/ER, and naltrexone, has increased over the past four quarters.

• Recent launches include generic methadone hydrochloride, buprenorphine, and Requip XL®, with a pivotal BE study for an anticonvulsant product.

Financial highlights

• Revenue for the quarter ended June 30, 2026, was $32.4 million, with operating profit at $7.5 million and net income at $5.9 million.

• Gross margin dropped to 42% from 68% year-over-year, and operating income declined by $14.2 million.

• Cash and restricted cash at quarter-end totaled $39.4 million, up from $30.3 million at the prior year-end.

• Cash provided by operations was $10.1 million, down from $14.8 million in the prior year but higher than the last three quarters.

• R&D expense rose to $2 million from $1.7 million year-over-year, reflecting ongoing product development.

Outlook and guidance

• Pipeline development is on schedule, with expectations for continued revenue and profit growth through new product launches.

• Launch of generic OxyContin® and a major anticoagulant product are pending FDA approval and ongoing negotiations.

• Uplisting to Nasdaq is targeted for early 2027, with or without an M&A transaction.

• Ongoing evaluation of product pipeline and cost/benefit of ANDAs to optimize portfolio.