Exton-Based Recro Pharma’s Acquisition of Competitor a ‘Transformative Transaction’

By

Recro Pharma CEO David Enloe
Image via Recro Pharma.
David Enloe.

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:

  1. Strengthening the organization’s leadership and talent
  2. Expanding and diversifying its client base
  3. Fortifying its financial position
  4. Enhancing its capabilities and competencies

Read more about Recro Pharma in the Philadelphia Business Journal.

Connect With Your Community

Subscribe to stay informed!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Advertisement
Creative Capital logo