Exton-Based Recro Pharma’s Acquisition of Competitor a ‘Transformative Transaction’
Exton-based Recro Pharma has acquired its West Coast competitor, Irisys of San Diego, in a cash and stock deal valued at roughly $50 million, writes John George for the Philadelphia Business Journal.
Recro bought the California company for $25.5 million in cash and 9.3 million shares of Recro stock that will be issued in six months. The deal also included a seller promissory note of $6.1 million with a three-year maturity date. The promissory note bears a six percent annual interest rate.
According to David Enloe, CEO of Recro, the deal is a “transformative transaction” for the company that now has operations on both coasts.
The acquisition also provides Recro with the option to offer pharmaceutical and biotechnology companies access to a multitude of services. These include pre-investigational new drug development and commercial manufacturing and packaging capabilities.
“The joining of these two companies creates an organization that is ideally positioned to achieve Recro’s four-pronged strategy for growth,” said Enloe. He identified it as:
- Strengthening the organization’s leadership and talent
- Expanding and diversifying its client base
- Fortifying its financial position
- Enhancing its capabilities and competencies
Read more about Recro Pharma in the Philadelphia Business Journal.
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