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Recro Acquires IRISYS to Expand CDMO Capabilities

08.13.21

From pre-IND development to commercial manufacturing and packaging for wide range of dosage forms.

Recro Pharma, a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges for companies developing oral solid dose drug products, has acquired the San Diego-CA-based CDMO IRISYS for approximately $50 million.
 
With its acquisition of IRISYS, Recro has transformed itself into a full service CDMO with operations on both the East and West Coast of the U.S. capable of offering its now expanded global client base access to services spanning from pre-investigational new drug (IND) development to commercial manufacturing and packaging for wide range of dosage forms.
 
“Today’s acquisition of IRISYS is truly a transformative transaction for Recro. 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, president and CEO, Recro. “Adding the personnel, facilities, capabilities and global customer base of IRISYS advances each of these goals and positions Recro for sustainable, profitable growth moving forward. We welcome the members of the IRISYS team to the Recro family and are eager to begin implementing the integration of the companies.”
 
IRISYS is a full service CDMO with capabilities that 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. IRISYS serves a diverse, global client base within the biopharmaceutical industry with its nearly 40 clients located in six different countries around the world. This includes manufacturing support for four commercial and near-commercial products. IRISYS recently added automated, aseptic fill/finish and lyophilization capabilities to its existing facility, offering a new key avenue for significant near-term growth IRISYS expects to generate $15.4 million in revenue for full year 2021 and has approximately $23 million spanning its contracted backlog and vetted sales pipeline.
 
Recro’s acquisition of IRISYS was driven by a number of compelling factors:
 
• Expands technical focus beyond oral solid dose to include sterile injectables oral liquids, tablets, topicals, liquid/powder filled capsules, ophthalmic droppers, liposomes and nano/microparticles;
• Adds new capabilities in the areas of aseptic fill/finish and lyophilization; and
• Establishes bi-coastal footprint from which to better serve clients within the U.S., as well as globally.
• Adds more than three dozen clients spanning six countries, reducing Recro’s customer dependency risk;
• Provides greater balance between our clinical and commercial project mix; and
• Diversifies portfolio from exclusively oral solid dose to a balance of multiple advanced dosage forms and oral solid dose.
 
In addition to the advancement of the company’s four-pronged growth strategy, the acquisition was also driven by key synergies between Recro and IRISYS within business development, clinical development and commercial scale-up, as well as a strong cultural alignment and fit between the companies.