Healthcare Expert Kevin Kotler Boosts His Stake In Recro Pharma Inc. (REPH)

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The shares of Recro Pharma have skyrocketed by over 440% since the beginning of the current year and there is not a single sign that the stock might stop rising in the upcoming months. On July 7, the company announced that it closed its private placement of 1.38 million shares of common stock, which generated gross proceeds of roughly $16 million. The purchase price for Recro Pharma’s common stock was $11.60 per share, which implies that Kevin Kotler has already achieved a gain of over 33% from the additional investment of 646,553 shares he purchased of the pharmaceutical company. Recro Pharma plans to use the net proceeds from the private placement to fund the clinical development of its lead candidates mentioned above, IV/IM meloxicam and Dex-IN, as well as covering some general corporate expenses. The Pennsylvania-based pharmaceutical company acquired a DEA-approved manufacturing facility in Gainesville, GA, along with a number of pain drugs, including the aforementioned IV/IM meloxicam, from the Irish drug maker Alkermes plc (NASDAQ:ALKS) a few months ago. Recro Pharma paid $50 million in cash and will also pay up to $120 million in milestone payments upon the achievement of certain regulatory and net sales milestones related to IV/IM meloxicam. Clearly, the progress has been very impressive for Recro Pharma Inc. (NASDAQ:REPH) and its future outlook remains very strong.

The pharmaceutical company has had a very strong start to 2015 and is in a good position to boost its growth in the upcoming months and years. When it comes to the financial performance of Recro Pharma, we can clearly state that the company has been very active and the achievement of its goals is around the corner. The company disclosed a net loss of $4.1 million or $0.53 per share for the fiscal first quarter of 2015, compared to a net loss figure of $6.4 million for the same quarter a year ago. At the same time, Recro Pharma reported research and development expenses of $1.8 million for the quarter, compared to $0.2 million for the first quarter of 2015, which might indicate that the company is moving in the right direction as it pushes its lead candidates towards the finish line. In the meantime, Dov Gertzulin’s DG Capital Management represents one of the largest investors in Recro Pharma Inc. (NASDAQ:REPH), with 314,718 shares.

Disclosure: None

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