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news.Recro Pharma has completed the acquisition of assets from Alkermes and its affiliates including worldwide rights to IV/IM meloxicam, and a contract manufacturing facility, royalty and formulation business.
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IV/IM meloxicam is a proprietary, Phase III-ready, long-acting COX-2 NSAID designed for the management of moderate to severe acute pain.
As part of the deal, Recro paid Alkermes $50m up-front and secured the rights to IV/IM meloxicam and ownership of a cGMP manufacturing facility and related business located in Gainesville.
Recro Pharma CEO Gerri Henwood said: "Completion of this transaction is a significant corporate milestone for Recro Pharma as it provides a second, complementary, Phase III-ready acute pain product to our portfolio, and adds infrastructure and cash flow which may help fund the development of our pipeline in the future.
"With upcoming top-line data readout of our Post Op Day 1 Phase II trial of Dex-IN mid-year 2015, we are excited for the potential of having two drug candidates in Phase III for the treatment of acute pain by the end of this year."
Alkermes is also eligible to receive about an additional $120m in milestone payments upon the achievement of certain regulatory and net sales milestones and royalties, related to IV/IM meloxicam.
At the closing of the deal, Recro issued Alkermes a seven-year warrant to purchase an aggregate of 350,000 shares of Recro common stock.
The company said that the $50m up-front payment was funded via a five-year senior secured term loan with an affiliate of OrbiMed.
In conjunction with the term loan, Recro issued OrbiMed a seven-year warrant to purchase an aggregate of 294,928 shares of Recro Pharma common stock.