In a report released today, Leland Gershell from Oppenheimer reiterated a Buy rating on Recro Pharma (REPH), with a price target of $18. The company’s shares opened today at $7.41.
“Recent amendments to REPH’s agreements with its IV meloxicam licensor as well as a debt investor have the combined effect of increasing the company’s near-term liquidity, and importantly, should relieve financing concerns heading into IV meloxicam’s 3/24/19 PDUFA. Absent these, REPH may have resorted to a (substantially dilutive) equity financing to help cover the $45M milestone owed to ALKS upon approval (we previously modeled ~$15M cash at end-1Q), a concern that we believe has weighed among investors. Although a financing later this year remains in the offing as REPH prepares for a potential product launch, we believe its CDMO facility could provide add’l leverage for a non-equity transaction. We continue to anticipate IV meloxicam approval on/around its FDA action date and reiterate our Outperform rating.”
According to TipRanks.com, Gershell has currently no stars on a ranking scale of 0-5 stars, with an average return of -23.0% and a 22.2% success rate. Gershell covers the Healthcare sector, focusing on stocks such as Avenue Therapeutics Inc, Evofem Biosciences Inc, and AzurRx BioPharma Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Recro Pharma with a $14.33 average price target.
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Based on Recro Pharma’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $13.26 million. In comparison, last year the company had a GAAP net loss of $24.08 million.
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Recro Pharma, Inc. is a pharmaceutical company, which engages in the research and development of non-opioid therapeutics for the treatment of acute post operative pain. It operates through the Acute Care, and Contract Development and Manufacturing (CDMO) business segment.