Recro Pharma, Inc (REPH) swung to a net loss for the year ended Dec. 31, 2016. The company has made a net loss of $30.20 million, or $ 2.82 a share in the year, against a net profit of $3.03 million, or $0.21 a share in the last year. Revenue during the year surged 33.46 percent to $69.34 million from $51.95 million in the previous year. Gross margin for the year expanded 42 basis points over the previous year to 46.42 percent. Operating margin for the year stood at negative 37.17 percent as compared to a negative 13.42 percent for the previous year.
Operating loss for the year was $25.77 million, compared with an operating loss of $6.97 million in the previous year.
"In the fourth quarter of 2016, we achieved a significant milestone in the development of our lead product candidate, intravenous (IV) meloxicam, with the reporting of positive results from the second of two pivotal efficacy trials," said Gerri Henwood, president and chief executive officer of Recro. "We believe IV meloxicam is well positioned to be a key product offering in the acute pain space given the urgent need for alternatives to traditionally prescribed opioids, which are often associated with side effects ranging from severe GI effects to abuse and addiction. Now that enrollment is complete in our IV meloxicam program, we look forward to several catalysts including the completion of follow-up for the 700+ enrolled patients in the third and final Phase III safety study for IV meloxicam, followed by an anticipated NDA filing during the summer of this year."
Recro Pharma, Inc expects revenue to be in the range of $55 million to $60 million for financial year 2017.
Working capital increases sharplyRecro Pharma, Inc has recorded an increase in the working capital over the last year. It stood at $68.50 million as at Dec. 31, 2016, up 134.67 percent or $39.31 million from $29.19 million on Dec. 31, 2015. Current ratio was at 5.21 as on Dec. 31, 2016, up from 4.08 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 72 days for the year from 163 days for the last year. Days sales outstanding went down to 53 days for the year compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the year compared with 114 days for the previous year period. At the same time, days payable outstanding went up to 24 days for the year from 15 for the same period last year.
Debt comes down
Recro Pharma, Inc has recorded a decline in total debt over the last one year. It stood at $24.39 million as on Dec. 31, 2016, down 18.05 percent or $5.37 million from $29.76 million on Dec. 31, 2015. Total debt was 13.33 percent of total assets as on Dec. 31, 2016, compared with 21.46 percent on Dec. 31, 2015. Debt to equity ratio was at 0.34 as on Dec. 31, 2016, down from 0.74 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
