Apr. 13, 2015, 11:02 AM
- Thinly-traded micro cap Recro Pharma (REPH +23.1%) heads north on a 3x surge in volume, albeit on turnover of only 300K shares. This morning the company announced the completion of its acquisition of assets from Alkermes plc, including the rights to the NDAID meloxicam, a contract manufacturing facility, royalty, and a formulation business.
- Under the terms of the agreement, Recro paid Alkermes $50M upfront, up to $120M in milestones and royalties on meloxicam sales. Recro adds over $70M to its top line with the deal.
Mar. 9, 2015, 7:59 AM
- Malvern, PA-based Recro Pharma (NASDAQ:REPH) acquires certain assets from Alkermes plc (NASDAQ:ALKS) including worldwide rights to an injectable version of meloxicam, a Phase 3-ready, long-acting COX-2 non-steroidal anti-inflammatory drug (NSAID) for moderate-to-severe pain, and an 85,000 sq. ft. contract manufacturing facility in Gainesville, GA.
- Under the terms of the agreement, Recro will pay Alkermes $50M at closing and up to an additional $120M in various milestones. Alkermes will also receive a seven-year warrant to purchase an aggregate of 350,000 shares of Recro stock. The $50M payment will be funded via a five-year secured term loan with OrbiMed at an interest rate of LIBOR +14%. In conjunction with the loan, Recro grants OrbiMed warrants to purchase 3% of Recro's outstanding common stock.
- Recro will host a conference call this morning at 8:00 am ET to discuss the transaction.