Recro Pharma (REPH) Tops Q1 EPS by 96c, Revenues Beat; Offers FY19 Revenue Guidance Above Consensus

Recro Pharma (NASDAQ: REPH) reported Q1 EPS of ($0.10), $0.96 better than the analyst estimate of ($1.06). Revenue for the quarter came in at $25.07 million versus the consensus estimate of $20.51 million.

“Our CDMO business is off to a strong start this year, generating $25.1 million in first quarter revenues, a 28% increase from the prior year first quarter,” said Gerri Henwood, President and Chief Executive Officer of Recro Pharma. “Growth of the Gainesville CDMO continues to accelerate as a result of strong demand from the existing commercial portfolio and growth in new business development activity. Operating income, Adjusted EBITDA* and operating income, as adjusted*, for the first quarter of 2019 was $9.1 million, $11.6 million and $9.2 million, respectively, which is an increase of 38%, 68% and 90%, respectively, compared to the same quarter of 2018.”

“In the Acute Care segment, we continue to believe that IV meloxicam is an important product that can ultimately receive FDA approval and that it is an attractive non-opioid pain management candidate for acute pain. We will continue to pursue FDA approval for IV meloxicam. While we continue to pursue potential approval and partnering of IV meloxicam, the Company and Board are also exploring and evaluating other possible corporate structures, including the possibility of separating the Acute Care and CDMO business segments,” concluded Ms. Henwood.

GUIDANCE:

Recro Pharma sees FY2019 revenue of $85-87 million, versus the consensus of $84.81 million.

As of May 10, 2019, Recro Pharma is reiterating that its revenue guidance for 2019 is expected to be in the range of $85-87 million. The Company is also reiterating that its operating income is expected to be in the range of $28-30 million and EBITDA (as Adjusted*) is expected to be in the range of $38-40 million. All of these projections are based on current CDMO business trends, including organic growth from existing customers and new business prospects. This guidance takes into consideration existing contracts and timing of customer order patterns, as well as the Company’s experience with customer’s product market estimations.

For earnings history and earnings-related data on Recro Pharma (REPH) click here.

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