Recro Pharma Securities Investigation – REPH Investors Who Suffered Financial Losses Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is conducting an investigation into potential securities fraud by Recro Pharma, Inc. (“Recro Pharma” or the “Company”) (NASDAQ: REPH) and certain of its officers.
Recro Pharma Revises Guidance Due To Recent Developments
On May 11, 2020, Recro Pharma announced (“Recro Reports First Quarter 2020 Financial Results and Provides Update on COVID-19 Response and Impact“) that
[f]or 2020, the Company is revising its guidance as a result of recent developments, including:
Increased competition from one of [Recro Pharma’s] key customer’s competitors for certain product strengths that had previously been out of the market was trending at an approximate 30% of market share level, but recently has recovered to a greater sustained percentage of approximately 50% market share. This has impacted both anticipated future manufacturing volumes and profit sharing;
Slower than expected new business growth, which [Recro Pharma] believe[s] is primarily attributable COVID-19. COVID-19 has required different ways of meeting and contacting customers, and has slowed customer access, and caused reassessment of plans for development services by some customers and prospects for a variety of reasons, such as concerns about availability of development funding, timing of clinical trials, etc.; and
Notifications by two of [its] customers of discontinuations for two commercial product lines, that resulted in a decrease of approximately $4 million on previous 2020 revenue guidance and is estimated to have an annual impact to 2021 revenue of approximately $7 million to $8 million. [Emphasis added.]
Recro Pharma also announced that it “now expects its 2020 revenue to be in the range of $80-$85 million.”
On this news, shares of Recro Pharma stock dropped by approximately 40% from an opening share price of $8.42 per share to a closing price of $5.08 per share.