Elite Pharmaceuticals Reports $14.4M Revenue Decline and $10.9M Net Loss for Q3 2024

Elite Pharmaceuticals, Inc. reported a total revenue of $14.4 million for the three months ended December 31, 2024, a decrease of 8% from $15.5 million in the same period of the previous year. The decline was primarily attributed to reduced sales of Elite label products, which were impacted by decreased shipments during the holiday season and a strategic shift in resources towards the launch of new products. For the nine months ended December 31, 2024, total revenue increased by 35% to $52.0 million, driven by a 39% rise in manufacturing fees, reflecting the growing market presence of Elite's products.

The company's gross profit for the three months ended December 31, 2024, was $6.1 million, down from $7.0 million a year earlier, resulting in a gross profit margin of 43%, compared to 45% in the prior year. This decrease was linked to fixed manufacturing costs being spread over lower revenues and a shift in product mix towards lower-margin items. Operating expenses rose significantly, totaling $5.0 million for the quarter, a 43% increase from $3.5 million, largely due to higher general and administrative costs and increased research and development expenditures.

Elite Pharmaceuticals experienced a net loss of $10.9 million for the three months ended December 31, 2024, compared to a net income of $0.7 million in the same period of 2023. This shift was primarily driven by a substantial increase in the fair value of derivative financial instruments, which resulted in a $11.7 million expense. For the nine-month period, the net loss was $21.3 million, a stark contrast to a net income of $16.8 million in the previous year, reflecting the impact of similar factors.

In terms of operational developments, the company has been actively expanding its product offerings. Notable recent launches include a generic version of Methotrexate Sodium and Acetaminophen and Codeine Phosphate tablets. Additionally, Elite has entered into an asset purchase agreement to acquire rights to several approved ANDAs, enhancing its product pipeline. The company also reported an increase in current assets to $48.0 million as of December 31, 2024, up from $40.0 million at the end of the previous fiscal year, indicating improved liquidity.

Looking ahead, Elite Pharmaceuticals aims to continue its focus on expanding its manufacturing capabilities and product portfolio. The company is also addressing internal control weaknesses identified in its financial reporting processes, with plans to implement revised controls and procedures. Despite the challenges faced in the recent quarter, the management remains optimistic about future growth driven by new product launches and strategic partnerships.