Recro eyes expansion to full-service CDMO status

The solid oral dose specialist signs letter of intent for acquisition of a CDMO providing a full range of services

Recro Pharma, a CDMO specialising in providing complex formulation and manufacturing services for companies developing oral solid dose drug products, is looking to spread its wings by signing a non-binding letter of intent for the acquisition of a full service CDMO.

In a statement, Recro said the unnamed company in question has capabilities ranging from formulation development to commercial manufacturing for various dosage forms including oral liquids, sterile injectables, tablets, topicals, liquid/powder filled capsules, ophthalmic droppers, liposomes and nano/microparticles.

Should the acquisition complete, Recro will acquire 100% of the company for approximately $50 million.

Recro's President and Chief Executive Officer David Enloe said: “We are excited about this potential transaction and look forward to closing and sharing more details in the near term."

Currently, the CDMO has two sites in Gainesville, GA, with development and manufacturing space covering 120,000 sq. ft.

Earlier this week, the company reported strong financial results for Q2, during which time it secured new projects with Astex Pharmaceuticals and Ensysce Biosciences, as well as a new unnamed customer.

In a statement reporting these results, Enloe said the company had "continued to expand and diversify" its customer base, and "significantly" strengthened its financial position.