Recro Pharma, Inc (REPH) saw its loss widen to $8.09 million, or $0.42 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $6.54 million, or $0.71 a share. Revenue during the quarter grew 5.64 percent to $18.74 million from $17.74 million in the previous year period. Gross margin for the quarter expanded 188 basis points over the previous year period to 43.99 percent. Operating margin for the quarter stood at negative 38.96 percent as compared to a negative 28.32 percent for the previous year period.
Operating loss for the quarter was $7.30 million, compared with an operating loss of $5.02 million in the previous year period.
“We achieved a key milestone this week in the development of our lead product candidate, intravenous (IV) meloxicam, with Tuesday’s announcement of successful top-line results from our Phase III safety study,” said Gerri Henwood, president and chief executive officer of Recro. “We believe this study was the largest double-blind, placebo-controlled, Phase III trial evaluating the safety of a non-opioid, IV pain product in a post-operative setting. We believe we remain on track to file the New Drug Application (NDA) with the U.S. Food and Drug Administration during early third quarter 2017.”
Recro Pharma, Inc projects revenue to be in the range of $55 million to $60 million for financial year 2017.
Working capital increases sharply
Recro Pharma, Inc has recorded an increase in the working capital over the last year. It stood at $64.33 million as at Mar. 31, 2017, up 170.84 percent or $40.58 million from $23.75 million on Mar. 31, 2016. Current ratio was at 5.97 as on Mar. 31, 2017, up from 2.91 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 64 days for the quarter from 111 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 74 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the quarter from 16 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 $24.55 million as on Mar. 31, 2017, down 10.49 percent or $2.88 million from $27.42 million on Mar. 31, 2016. Total debt was 13.94 percent of total assets as on Mar. 31, 2017, compared with 20.30 percent on Mar. 31, 2016. Debt to equity ratio was at 0.38 as on Mar. 31, 2017, down from 0.78 as on Mar. 31, 2016.
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