Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
RxElite, Inc. is a pharmaceutical company that specializes in the development, production, and commercialization of generic prescription drugs, particularly within specialty markets. Its diverse product portfolio encompasses Sterile Liquid Dose offerings, such as generic ophthalmic solutions (available in both unit-dose and multi-dose formats), sterile unit-dose respiratory inhalation products, and various injectable medications. Beyond its finished drug products, the company, operating through its subsidiaries, also serves as a manufacturer of active pharmaceutical ingredients (APIs) for other pharmaceutical entities across the United States, Europe, and Asia. RxElite's extensive customer base includes institutional clients like hospitals and hospital group purchasing organizations, national and regional wholesale distributors, major direct retail pharmacy chains, home healthcare providers, and various outpatient surgery centers and ambulatory care clinics. The company maintains strategic alliances with industry partners such as Stason Pharmaceuticals, Inc., Alkem Laboratories Limited, and Zach Systems S.p.A. Headquartered in Meridian, Idaho, RxElite Inc. operates as a subsidiary of Piramal Healthcare Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA.