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Elite Pharmaceuticals (ELTP) Side-Steps Bankruptcy Threat, Posts Yearly Revenue Increase

Elite Pharmaceuticals Inc., a specialty pharmaceutical company dedicated to developing and commercializing oral controlled release products, today announced results for the fiscal year ended March 31, 2011.

Total revenues increased 28 percent to $4.3 million compared to 2010 total revenues of $3.3 million. The company generated $1.6 million in positive cash flow, compared with negative operating cash flows of $1.4 million last year.

Elite attributes the increases primarily to the manufacture, sale and lab services related to its Lodrane line of products, which were discontinued in April 2011 after the U.S. Food and Drug Administration ordered the removal of hundreds of cough and cold and allergy products, including Lodrane, off the market.

The company reported a loss from operations at $0.9 million for the 2011 fiscal year, compared with a loss from operations of $1.9 million in the prior year.

Elite notes that the operating loss this fiscal year includes $1.4 million in charges stemming from a recent decision by the FDA, which the company said would have a significant negative impact on the company. Elite is appealing these decisions.

GAAP net loss for fiscal 2011 was $13.6 million, or $(0.14) per common share, compared to a GAAP net loss of $8.1 million, or a loss of $(0.11) in the prior year.

Jerry Treppel, chairman and CEO of Elite, emphasized the company’s successful efforts to stave off the threat of bankruptcy.

“I am extremely proud of all the employees at Elite who helped the company complete an astonishing operational turnaround from the verge of bankruptcy to an operating profit. Of course we cannot control the decision-making process of the FDA which has negated much of our hard work. Nonetheless, we have generated other revenue producing opportunities and will continue to do so,” Treppel stated in the press release.

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