Recro Pharma Inc. (NASDAQ: REPH) stock gained by 16.33% at last close whereas the REPH stock price declines by 5.48% during the after-hours trading after Recro Pharma released its first-quarter 2021 financial results. Recro is a contract development and manufacturing organization (CDMO) that offers services ranging from early viability to commercialization.
On May 6, 2021, Recro Pharma announced its financial results for the first quarter 2021. Given below are the highlights:
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- For the three months ending March 31, 2021, revenue was $16.8 million, relative to $21.8 million for the same time in 2020. The $5.0 million reduction was largely due to the business partners discontinuing two commercial product lines and changing consumer purchasing habits in early 2020.
- For Q1 2021, cost of sales was $14.4 million, opposed to $18.4 million for the same duration in 2020.
- Selling, general, and operating costs for Q1 2021 were $4.7 million, relative to $5.4 million for the same duration in 2020.
- Interest cost for the three months ending March 31, 2021, was $3.9 million, compared to $5.1 million for the same duration in 2020. Decreased term loan borrowings under the Credit Agreement with Athyrium, and a decline in the LIBOR base rate of interest on the term loans under the Credit Agreement, contributed to the $1.2 million decrease.
- Recro announced a net loss of $6.8 million, or $0.23 per diluted share for Q1 2021. In the same timeframe of 2020, REPH had a net loss of $7.7 million, or $0.33 per diluted share.
David Enloe, president and CEO commented:
In 2020, the pandemic caused a drop in drug sales across various clinical groups. Recro was not resistant to the slowdown, when two consumers told REPH that they will be discontinuing two commercial goods in 2020. As a result, REPH understands the value of cultivating a large and varied customer base that can survive market volatility. With this in mind, REPH has been working hard to reduce their reliance on a small range of programs, and also they are happy to say that they’ve already been awarded several contracts in the first quarter.