Under the alliance agreement, at least eight additional generic drug products will be developed by Epic Pharma and Epic Investments (collectively Epic) at Elite’s facility with the intent of filing abbreviated new drug applications for obtaining the FDA’s approval of such generic drugs.
Elite will be entitled to 15% of the profits generated from the sales of such additional generic drug products upon approval by the FDA, and Epic and Elite will share with each other certain resources, technology and know-how in the development of drug products, which Elite believes will benefit the continued development of its current drug products.
In order to provide Elite with the additional capital necessary for the product development and synergies presented by the strategic relationship with Epic, Epic will invest in Elite through the purchase of $3.75 million of newly issued shares of Elite’s series E convertible preferred stock and warrants to purchase additional shares of Elite’s common stock.
Epic will also be entitled to receive additional shares of Elite’s common stock and warrants to purchase shares of Elite’s common stock upon achievement of certain milestones relating to the eight additional generic drug products to be developed by Epic at Elite’s facility.
Chris Dick, COO and acting CEO of Elite, said: “The completion of the transactions of the alliance agreement creates value for our stockholders by adding a new revenue source for Elite upon the commercialization of the Epic products developed at our facility, providing an experienced partner to assist in the development, manufacture and licensing of our pharmaceutical products, and contributing funding for the products. Importantly, Elite will continue the development of its pain products and, with the help of our new partner, work towards securing licensing arrangements for such pain products.”