Recro Pharma, Inc. is a clinical stage specialty pharmaceutical company developing non-opioid therapeutics for the treatment of pain, initially in the post-operative setting.
Our lead product, an intranasal formulation of Dexmedetomidine, or Dex, has completed a Phase Ib placebo controlled trial demonstrating pain relief. We have studied various dosage forms of Dex in eight completed clinical studies, two of which were placebo controlled trials that demonstrated meaningful pain relief. As our product candidates are not opioid based drugs, we expect to overcome many of the side effects associated with commonly prescribed opioid based therapeutics, including addiction, constipation and respiratory distress while maintaining analgesic, or pain relieving, effect. We are ready to begin a Phase IIb trial with Dex in patients experiencing post-operative pain. We believe Dex will become an alternative pain medication to opioids for the more than 50 million surgical procedures that require post-operative pain medication. If approved, Dex would also be the first and only approved post-operative pain drug in its class of drugs.

Recro Pharma is headquartered in Malvern, US

Recro Pharma has an office in Malvern

Malvern, US (HQ)

490 Lapp Rd

Recro Pharma's revenue was reported to be $18.7 m in Q1, 2017

USD

## Revenue (Q1, 2017) | 18.7 m |

## Gross profit (Q1, 2017) | 8.2 m |

## Gross profit margin (Q1, 2017), % | 44% |

## Net income (Q1, 2017) | (8.1 m) |

## EBIT (Q1, 2017) | (7.3 m) |

## Market capitalization (15-Aug-2017) | 141.5 m |

## Cash (31-Mar-2017) | 19.5 m |

Recro Pharma's current market capitalization is $141.5 m.

- Source: SEC Filings

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Revenue | 52 m | 69.3 m | |

## Revenue growth, % | 33% | ||

## Cost of goods sold | 28.1 m | 37.2 m | |

## Gross profit | 23.9 m | 32.2 m | |

## Gross profit Margin, % | 46% | 46% | |

## R&D expense | 7.9 m | 12.3 m | 33.3 m |

## General and administrative expense | 4 m | 13 m | 12.7 m |

## Operating expense total | 11.9 m | 58.9 m | 95.1 m |

## EBIT | (11.9 m) | (7 m) | (25.8 m) |

## EBIT margin, % | (13%) | (37%) | |

## Interest expense | (4.3 m) | (5.6 m) | (5.6 m) |

## Interest income | 10.5 k | 12 k | 49 k |

## Pre tax profit | (16.1 m) | (12.5 m) | (31.3 m) |

## Income tax expense | 15.6 m | 1.1 m | |

## Net Income | (16.1 m) | 3 m | (30.2 m) |

USD | Q2, 2014^{} | Q3, 2014^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2015^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2016^{} | Q1, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Revenue | 18.7 m | 16.5 m | 17.7 m | 17.3 m | 17 m | 18.7 m | |||

## Cost of goods sold | 9.4 m | 10 m | 10.3 m | 9.5 m | 5.7 m | 10.5 m | |||

## Gross profit | 9.3 m | 6.5 m | 7.5 m | 7.7 m | 11.2 m | 8.2 m | |||

## Gross profit Margin, % | 50% | 39% | 42% | 45% | 66% | 44% | |||

## R&D expense | 1.8 m | 3.6 m | 1.8 m | 2.8 m | 2.7 m | 7.8 m | 8.3 m | 7 m | 7.8 m |

## General and administrative expense | 958.6 k | 1.1 m | 2.4 m | 2.6 m | 3.5 m | 2.7 m | 2.8 m | 3.8 m | 4 m |

## Operating expense total | 2.8 m | 4.7 m | 4.1 m | 5.4 m | 6.2 m | 10.5 m | 11.1 m | 10.9 m | 11.8 m |

## EBIT | 373 k | (164 k) | (5 m) | (6.8 m) | (3.9 m) | (7.3 m) | |||

## EBIT margin, % | 2% | (1%) | (28%) | (39%) | (23%) | (39%) | |||

## Interest expense | (4.3 m) | (1.7 m) | (2 m) | (1.5 m) | (1.3 m) | (1.5 m) | (1.2 m) | ||

## Interest income | 2.3 k | 4.6 k | 3.7 k | 4 k | 2 k | 9 k | 8 k | 10 k | 105 k |

## Pre tax profit | (6.5 m) | (8.1 m) | (5.4 m) | (8.4 m) | |||||

## Income tax expense | (11 k) | 195 k | (18 k) | 293 k | |||||

## Net Income | (7.9 m) | (12.7 m) | (4.1 m) | (5.5 m) | (7.6 m) | (6.5 m) | (14.4 m) | (19.8 m) | (8.1 m) |

- Source: SEC Filings

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Cash | 19.7 m | 19.8 m | 64.5 m |

## Accounts Receivable | 89.6 k | 8.6 m | 10.4 m |

## Inventories | 9 m | 1.1 m | |

## Current Assets | 20.4 m | 38.7 m | 84.8 m |

## PP&E | 37.9 m | 37.3 m | |

## Goodwill | 6.4 m | 6.4 m | |

## Total Assets | 20.4 m | 138.7 m | 183 m |

## Accounts Payable | 869.9 k | 1.6 m | 4.1 m |

## Total Debt | 11.9 m | 29.8 m | 24.4 m |

## Current Liabilities | 1.4 m | 9.5 m | 16.3 m |

## Total Liabilities | 111.4 m | ||

## Common Stock | 77.1 k | 92 k | 190 k |

## Additional Paid-in Capital | 52.9 m | 71.3 m | 132.7 m |

## Retained Earnings | (34.1 m) | (31.1 m) | (61.3 m) |

## Total Equity | 18.9 m | 40.4 m | 71.6 m |

## Debt to Equity Ratio | 0.6 x | 0.7 x | 0.3 x |

## Debt to Assets Ratio | 0.6 x | 0.2 x | 0.1 x |

## Financial Leverage | 1.1 x | 3.4 x | 2.6 x |

USD | Q2, 2014^{} | Q3, 2014^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2015^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2016^{} | Q1, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Cash | 27.8 m | 23.9 m | 16.6 m | 15.7 m | 28.3 m | 14.9 m | 14.8 m | 24.8 m | 19.5 m |

## Accounts Receivable | 86.8 k | 80.2 k | 15 m | 9.6 m | 12.2 m | 11.5 m | 12.4 m | 12.3 m | |

## Inventories | 9.6 m | 8.6 m | 7.6 m | 6.7 m | 9.8 m | 7.8 m | |||

## Current Assets | 28.1 m | 24.1 m | 17.3 m | 42.4 m | 48.4 m | 36.2 m | 35.2 m | 49 m | 77.3 m |

## PP&E | 39.4 m | 38.7 m | 37 m | 36.6 m | 36.5 m | 37.3 m | |||

## Goodwill | 6.7 m | 6.7 m | 6.4 m | 6.4 m | 6.4 m | 6.4 m | |||

## Total Assets | 28.1 m | 24.1 m | 17.9 m | 129.8 m | 134.5 m | 135.1 m | 133.7 m | 146 m | 176.1 m |

## Accounts Payable | 400.2 k | 682.2 k | 552.7 k | 767 k | 781 k | 2 m | 1.8 m | 1.9 m | 3 m |

## Current Liabilities | 1.3 m | 1.9 m | 2.6 m | 15.8 m | 19.1 m | 12.5 m | 12.4 m | 11.3 m | 12.9 m |

## Additional Paid-in Capital | 52.6 m | 52.7 m | 53.5 m | 54.2 m | 70 m | 72.6 m | 76.7 m | 91.4 m | 133.6 m |

## Retained Earnings | (25.9 m) | (30.6 m) | (38.2 m) | (39.5 m) | (41.7 m) | (37.6 m) | (45.5 m) | (50.9 m) | (69.4 m) |

## Total Equity | 26.8 m | 22.2 m | 15.3 m | 14.7 m | 28.4 m | 35 m | 31.3 m | 40.6 m | 64.4 m |

## Financial Leverage | 1 x | 1.1 x | 1.2 x | 8.8 x | 4.7 x | 3.9 x | 4.3 x | 3.6 x | 2.7 x |

USD | FY, 2014^{} | FY, 2015^{} | FY, 2016^{} |
---|---|---|---|

## Net Income | (16.1 m) | 3 m | (30.2 m) |

## Depreciation and Amortization | 1.4 k | 4.1 m | 5 m |

## Accounts Receivable | (51.2 k) | 4 m | (1.8 m) |

## Inventories | 1.3 m | (325 k) | |

## Accounts Payable | 1.1 m | 2.2 m | 8.5 m |

## Cash From Operating Activities | (10.9 m) | 8.5 m | (3.2 m) |

## Purchases of PP&E | (2.4 m) | (3.8 m) | |

## Cash From Investing Activities | (55.1 m) | (3.8 m) | |

## Long-term Borrowings | (16.3 m) | (6.3 m) | |

## Cash From Financing Activities | 30.5 m | 46.7 m | 51.7 m |

## Interest Paid | 4.9 m | 4.5 m |

USD | Q2, 2014^{} | Q3, 2014^{} | Q1, 2015^{} | Q2, 2015^{} | Q3, 2015^{} | Q1, 2016^{} | Q2, 2016^{} | Q3, 2016^{} | Q1, 2017^{} |
---|---|---|---|---|---|---|---|---|---|

## Net Income | (7.9 m) | (12.7 m) | (4.1 m) | (5.5 m) | (7.6 m) | (6.5 m) | (14.4 m) | (19.8 m) | (8.1 m) |

## Depreciation and Amortization | 1.3 m | 2.7 m | 1.3 m | 2.5 m | 3.8 m | 1.2 m | |||

## Accounts Receivable | 38.4 k | (48.4 k) | 9.4 k | (1.9 m) | |||||

## Inventories | 345 k | 1.4 m | 1.3 m | 2.3 m | (830 k) | 936 k | |||

## Accounts Payable | 988.5 k | 1.6 m | 532.7 k | 4 m | 2.7 m | 2.6 m | 1.9 m | 4.5 m | (2.4 m) |

## Cash From Operating Activities | (2.7 m) | (6.6 m) | (3 m) | 1.7 m | 7.8 m | (2.4 m) | (5.4 m) | (4.2 m) | (7.1 m) |

## Purchases of PP&E | (1.2 m) | (1.8 m) | (344 k) | (1.1 m) | (2 m) | (1.7 m) | |||

## Cash From Investing Activities | (53.9 m) | (54.5 m) | (344 k) | (1.1 m) | (2 m) | (37.9 m) | |||

## Long-term Borrowings | (2.6 m) | ||||||||

## Cash From Financing Activities | 30.5 m | 30.5 m | (125 k) | 48.2 m | 55.2 m | (2.1 m) | 1.5 m | 11.2 m | (2.1 m) |

## Interest Paid | 3.4 m | 1.2 m | 2.4 m | 3.5 m | 1 m |

USD | Y, 2017 |
---|---|

## Revenue/Employee | 98.4 k |

## Financial Leverage | 2.7 x |

August 11, 2016

* Sees FY 2016 revenue $55 million to $60 million
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