Recro Pharma Pays $50 Million for Irisys
US CDMO Recro Pharma has paid roughly $50 million in a cash-and-stock deal to buy Irisys, a compatriot CDMO with operations on both the East and West Coasts. Recro said the deal expands its offering from pre-Investigational New Drug (IND) development to commercial manufacturing and packaging for a wide range of dosage forms.
“The joining of these two companies creates an organization that is ideally positioned to achieve Recro’s previously disclosed four-pronged strategy for growth, which includes strengthening the organization’s leadership and talent, expanding and diversifying our client base, fortifying our financial position, and enhancing our capabilities and competencies,” said David Enloe, Recro’s president and CEO.
Based in San Diego, California, Irisys’s capabilities range 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.
In addition, Irisys’s recently added automated, aseptic fill/finish and lyophilization capabilities offers a new key avenue for significant near-term growth, Recro said.
Irisys expects to generate $15.4 million in revenue for 2021 and has approximately $23 million spanning its contracted backlog and vetted sales pipeline. The company serves nearly 40 clients within the global biopharmaceutical industry.
Recro sees key synergies between the companies in business development, clinical development and commercial scale-up.
Author: Elaine Burridge, Freelance Journalist
