Recro Pharma Inc. (NASDAQ:REPH) released its fourth quarter and full year financial results for the period ending December 31, 2014 last month. The clinical stage pharmaceutical company focused on the development of non-opiod therapeutics for the treatment of acute post operative pain, had a very positive fourth quarter with its earnings per share increasing from a loss of $3.19 per share from the same quarter in 2013, to a loss of only $0.45 per share in 2014.

Gerri Henwood, the President and Chief Executive Officer of Malvern, PA, based Recro Pharma, highlighted the company’s recent successes, by stating that “In late 2014 and early 2015 we made significant advancements on both the clinical and corporate fronts.” The biggest of these, was the announcement this month that it had agreed to acquire assets from Alkermes Plc, including the worldwide rights to IV/IM meloxicam, a proprietary, Phase III ready, long acting COX-2 NSAID used to treat moderate to severe pain. The announcement of this deal has helped propel Recro Pharmas share price up over 180% in the last month.

In addition to this recent acquisition, which diversifies its development risk by giving them a second, complimentary pain product, Gerri Henwood also pointed to successes within the company’s own clinical trials, including its Phase II Dex-IN Post Op Day 1 trial, which “is progressing and we expect to receive results from our interim analysis shortly and top line results in mid 2015.”  This means that Recro Pharma could be in the enviable position of having two proprietary compounds ready for Phase III trials by the end of 2015.

Recro Pharma has also taken steps to ensure its long term finances by entering into an agreement with Aspire Capital LLC to sell up to $10 million of shares in common stock over a two year period, giving it greater capital and flexibility. This is effectively a $10 million committed equity line that will help secure the company as its moves forward through the regulatory approval of its deal with Alkermes Plc.

Financially, despite the lower reported loss of $0.45 per share in the fourth quarter, shareholders had to swallow a full year loss of $17.4 million or $2.79 per share compared to the loss of $2.4 million or $15.41 per share in 2013. The main causes of the increase were additional clinical research expenses from moving Dex-In into Phase II clinical trials, and general costs associated with becoming a publicly listed company. There was also an additional one-time, non-cash beneficial conversion charge, of $4.1 million from the conversion of its 8% Convertible Promissory Notes during the IPO in March 2014. However with cash and cash equivalents at a solid $19.7 as at 31 December 2014, Recro Pharma is well positioned for success moving forward this year.

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Top photo credit: Toxicology Research at FDA (NCTR 1402) via photopin (license)