Contract development and manufacturing organization solving complex formulation and manufacturing challenges, Recro Pharma (NASDAQ:REPH) announced on August 13, 2021 acquisition of San Diego-based CDMO, IRISYS, possessing capabilities for expanding Recro’s requirements.
The acquisition cost about $50 million through a mix of cash, shares of Recro as well as seller promissory notes. The firm is transforming into a complete CDMO with operations on both the West and East Coast of the US. This will provide global client base access to services spanning from new drug development to commercial manufacturing for a wider range of dosages.
David Enloe, president, and chief executive officer of Recro, said that the acquisition is transformative and the joining of the two firms will create an organization for achieving growth, strengthening leadership and talent, ensuring a robust financial position besides diversifying client base. Enloe added that the facilities, personnel as well as global customer base of IRISYS will advance the goals of Recro for profitable and sustainable growth.
IRISYS has formulation development as well as commercial manufacturing for several dosage forms including sterile injectables, tablets, oral liquids, liquid/powder-filled capsules, amongst others. The company has 40 clients in six different countries globally. It is expecting to generate $15.4 million in revenue for 2021 and has about $23 million in contracted backlog and vetted sales pipeline.