Recro Pharma Inc. (REPH) shares gained 2.79% to trade at $2.58 in after-market on Tuesday, May 18, 2021. Earlier, REPH’s stock lost 0.79% to close Tuesday’s session at $2.51. REPH shares have fallen 43.60% over the last 12 months, and they have moved down 3.46% in the past week. Over the past three months, the stock has lost 43.21%, while over the past six months, it has surged 33.51%.
Let’s have a look at its recent news.
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The development agreement with Astex Pharmaceuticals
On May 18, 2021, Recro Pharma, Inc signed a new development agreement with Astex Pharmaceuticals, Inc.
As of this writing, there are no other details are provided by both companies.
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Closing public offering of common stock
On May 14, 2021, Recro Pharma, Inc announced to close its previously announced underwritten public offering of 15,333,332 shares of its common stock, including 1,999,999 shares sold under the underwriters’ full exercise of their option to purchase additional shares to cover over-allotments, at a public offering price of $2.25 per share.
The gross proceeds of 34.5 million from this offer will be used for general corporate purposes.
Recent financial results
On May 06, 2021, Recro Pharma, Inc released its financial results for the first quarter ended March 31, 2021.
Q1 2021 financial highlights
- Recro Pharma reported revenue of $16.8 million for the three months ended March 31, 2021, compared to $21.8 million for the comparable period of 2020.
- The cost of sales was $14.4 million for Q1 2021, compared to $18.4 million for the comparable period of 2020.
- Selling, general and administrative expenses were $4.7 million for Q1 2021 compared to $5.4 million for Q1 2020.
- Interest expense was $3.9 million for Q1 2021 compared to $5.1 million for Q1 2020.
- Recro suffered a net loss of $6.8 million or $0.23 per diluted share for Q1 2021 compared to a net loss of $7.7 million or $0.33 per diluted share for the comparable period of 2020.
- Q1 2021, Adjusted EBITDA, was $2.7 million compared to $2.8 million in the prior-year period.
- Recro had cash and cash equivalents of $11.6 million on March 31, 2021.
Financial outlook
For the full year of 2021, Recro is expecting
- Revenue to be approximately $68 to $72 million.
- Adjusted EBITDA, in the range of $15 to $17 million.
- Net loss in the range of $15.6 million to $13.6 million.
Recro expands relationship withEnsysce Biosciences
On April 15, 2021, Recro Pharma, Inc. expanded its existing relationship with Ensysce Biosciences by signing additional agreements. As per new agreements, Recro will provide early-stage development and manufacturing services to support two of Ensysce’s development programs. Recro and Ensysce have already commenced the initial phase of these projects.
Conclusion
The REPH stock price went up in the after-hours due to the partnership announcement with Astex Pharmaceuticals. REPH can surge more in the coming days when more details will be released about the partnership agreement.
