Taking action after the FDA rejected IV meloxicam a second time, Recro Pharma (NASDAQ:REPH) has launched a cost-cutting initiative in its Acute Care business, including the termination of about 50 employees, that it believes will significantly lower operating expenses and cash consumption. Management says the move will result in breakeven cash flow in Q3 and positive cash flow in Q4.
The company plans to meet with the FDA to discuss the second CRL and clarify a registration path forward while vetting potential commercialization partners for the product.
In a show of confidence, management has upped its 2019 revenue forecast to $85M - 87M from $80M and non-GAAP EBITDA to $38M - 40M from $34M.
Shares are up 17% after hours.
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