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Edited Transcript of REPH earnings conference call or presentation 8-Nov-19 1:00pm GMT

Q3 2019 Recro Pharma Inc Earnings Call

Malvern Nov 14, 2019 (Thomson StreetEvents) -- Edited Transcript of Recro Pharma Inc earnings conference call or presentation Friday, November 8, 2019 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Geraldine A. Henwood

Recro Pharma, Inc. - President, CEO & Director

* Ryan D. Lake

Recro Pharma, Inc. - CFO

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Conference Call Participants

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* David A. Amsellem

Piper Jaffray Companies, Research Division - MD and Senior Research Analyst

* Esther Lannie Hong

Janney Montgomery Scott LLC, Research Division - Director of Biotechnology

* Leland James Gershell

Oppenheimer & Co. Inc., Research Division - MD & Senior Analyst

* Zhilin Long

Joh. Berenberg, Gossler & Co. KG, Research Division - Associate

* Claudia Styslinger

Argot Partners, LLC - IR Associate

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Presentation

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Operator [1]

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Good morning, and welcome to the Recro Third Quarter 2019 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded at the company's request.

I would now like to turn the call over to Claudia Styslinger, Investor Relations. You may begin.

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Claudia Styslinger, Argot Partners, LLC - IR Associate [2]

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Good morning, and thank you for joining us on today's conference call to discuss Recro's third quarter 2019 financial results. This is Claudia Styslinger, and I am joined today by Gerri Henwood, President and Chief Executive Officer; and Ryan Lake, Chief Financial Officer. Following prepared remarks today by Gerri and Ryan, we will open the call for questions.

Earlier this morning, we issued a press release detailing our financial and operating results for the 3 and 9 months ended September 30, 2019. The press release is available on the News & Investors page of our website at recropharma.com.

Before we begin our formal comments, I'll remind you that various remarks we make today constitute forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the company's ability to complete the spin of its Acute Care business segment; uncertainty of whether the anticipated benefits of the spin-off can be achieved; risks of unexpected costs or delays and the company's ability to complete the spin-off; the company's ability to continue the development and commercialization of IV meloxicam; the company's ability to execute its strategic initiatives; the company's ability to adequately resolve the outstanding labeling issues with the FDA for IV meloxicam and the time frame associated with any such resolution; the company's financial outlook; and the company's product development plans for its other product candidate, including the results and timing of any future preclinical studies and clinical trials for such product candidates.

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations and forecasts and can be identified by words such as expect, plan, will, may, anticipate, believe, estimate, upcoming, should, intend and other words of similar meaning. Any such forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties. These risks are described in the risk factors and the management's discussion and analysis of Financial Condition and Results of Operation sections of Recro Pharma's annual report on Form 10-K for the fiscal year ended December 31, 2018, and quarterly reports on Form 10-Q, which are on file with the Securities and Exchange Commission and available on the SEC's website.

Any information we provide on this conference call is provided only as of the day of this call, November 8, 2019. And we undertake no obligation to update any forward-looking statements we may make on this call on account of new information, future events or otherwise.

In addition, any unaudited or pro forma financial information that may be provided is preliminary and does not purport to project financial positions or operating results of the company. Actual results may differ materially.

We may also discuss certain non-GAAP financial measures with respect to our financial performance for the 3 and 9 months ended September 30, 2019. Specifically, we may discuss operating income as adjusted, which is operating income without the impact of ASCO No. 2014-09, and the earnings before interest taxes, depreciation and amortization and noncash stock-based compensation or EBITDA as adjusted for our contract development and manufacturing organization or CDMO business.

We believe these non-GAAP financial measures are helpful in understanding our CDMO business as it gives investors greater transparency into the supplemental information used by management in evaluating the financial performance of our CDMO business. These non-GAAP financial measures should be considered in addition to, but not as a substitute for reported GAAP results included in our earnings release and to be discussed on this call.

We have included a reconciliation of operating income as adjusted and EBITDA as adjusted to the GAAP measures in the supplemental financial schedule, which has been made available on the News & Investors page of our website at recropharma.com.

I would now like to turn the call to Gerri Henwood. Gerri?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [3]

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Thank you, Claudia, and good morning, everyone. Thank you for joining us on today's call. I'll begin today with an overview of recent accomplishments within the CDMO segment.

I'm pleased to announce that the manufacturing business continues to outperform, generating record results. The third quarter revenues of $25.3 million represents a 38% increase compared to the third quarter of 2018. Year-to-date, the CDMO business generated $81.6 million in revenues, a 37% increase from the same period in 2018. We are very pleased with year-to-date sales performance and the trajectory of continued year-over-year growth.

Given the consistent strong results, organic growth from existing customers, added development services, customers and new business prospects, we are raising our 2019 full year CDMO revenue guidance from $91 million to $94 million to an anticipated $98 million to $100 million.

I am also happy to announce that during the third quarter of 2019, we achieved consolidated operating profitability earlier than expected and generated $4.8 million in cash from operations. We expect to remain cash flow positive for the second half of 2019, excluding the impact from any potential strategic transaction.

Turning now to the Acute Care segment. For IV meloxicam, as many of you know, the U.S. Food and Drug Administration recently granted our appeal of the complete response letter relating to our new drug application seeking approval for IV meloxicam. We are in the process of preparing a comprehensive response and re-filing that includes proposed revised labeling and certain other information to the FDA.

Finally, earlier this month, our Board of Directors approved the planned spin-out of Acute Care business segment, which will be known as Baudax Bio Inc. and declared a special dividend distribution of all outstanding shares of Baudax Bio common stock. For every 2.5 shares of Recro common stock held of record as of the close of business on November 15, 2019, Recro shareholders will receive 1 share of Baudax Bio common stock. Shareholders will receive cash in lieu of any fractional shares. The special dividend distribution is expected to be paid November 21, 2019.

The distribution of Baudax Bio common stock will complete the separation of the Acute Care business segment from Recro. After the separation, Baudax Bio will be an independent publicly traded company focused on developing and commercializing innovative products for hospital and related acute care settings, and Recro will retain no ownership interest. Baudax Bio has applied for listing of its common stock on the NASDAQ capital market under the ticker symbol BXRX.

No action is required by Recro shareholders to receive shares of Baudax Bio common stock as a part of this special dividend distribution. However, if any holder of Recro common stock sells shares of Recro common stock on or before the distribution date, they may be selling the entitlement to receive shares of Baudax Bio common stock.

With that, I'll turn it over to Ryan now.

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Ryan D. Lake, Recro Pharma, Inc. - CFO [4]

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Thank you, Gerri. Good morning, everyone. Since we issued a press release and our Form 10-Q earlier today outlining our full financial results, I'll just review some of the key third quarter and year-to-date highlights.

As of September 30, 2019, Recro had cash and cash equivalents of $37.9 million. Revenues and cost of sales were $25.3 million and $11 million, respectively, for the third quarter of 2019 compared to $18.3 million and $8.5 million for the third quarter of 2018. The increase of $7 million in revenue was due to increased royalties recognized from one of our commercial partners and an increase in product sales to various of our commercial partners.

Cost of sales increased primarily due to expansion of our service and development capabilities as well as growth in manufacturing demand, which was partially offset by operating efficiencies gained as a result of higher production volumes.

Research and development expenses for the third quarter of 2019 were $1.8 million compared to $11.3 million for the third quarter of 2018. The decrease of $9.5 million was primarily due to the decrease in pre-commercialization manufacturing costs for IV meloxicam; shift of focus of our CDMO formulation and development capabilities to cost of sales activities; a decrease in development costs for other pipeline products; and a decrease in personnel costs.

General and administrative expenses for the third quarter of 2019 were $6.9 million compared to $7 million for the third quarter of 2018.

For the third quarter of 2019, the company reported a net loss of $4.3 million, or $0.19 per share compared to a net loss of $13.3 million or $0.64 per share for the same period in 2018.

For the 9 months ended September 30, 2019, revenues and cost of sales were $81.6 million and $39.5 million, respectively, compared to $59.6 million and $31 million for the same period in 2018. The increase of $22 million in revenues was due to increased royalties recognized from one of our commercial partners and an increase in product sales to various of our commercial partners.

Cost of sales increased, primarily due to expansion of our service and development capabilities as well as growth in manufacturing demand, which, again, was partially offset by operating efficiencies gained as a result of higher production volumes.

Research and development expenses for the 9 months ended September 30, 2019, were $18.6 million compared to $29.9 million for the same period in 2018. Excluding $2.8 million of costs associated with the strategic restructuring initiative recorded in the 9 months ended September 30, 2019, the decrease of $14.1 million was primarily due to: a decrease in pre-commercialization manufacturing costs for IV meloxicam; a decrease in personnel costs; and the shift of focus of our CDMO formulation and development capabilities to cost of sales activities; and a decrease in development costs for our other pipeline products.

General and administrative expenses for the 9 months ended September 30, 2019, were $31.1 million compared to $29.4 million for the same period in 2018. Excluding $4.4 million of costs associated with the strategic restructuring initiative recorded in 9 months ended September 30, 2019, the decrease of $2.7 million was due to decreases in commercial team personnel and pre-commercial consulting costs incurred for the anticipated launch of IV meloxicam, following the receipt of the second CRL.

These decreases in costs were offset by increases in costs associated with the debt refinancing earlier in the year; public company costs, including legal fees; business development costs in our CDMO segment; as well as increased professional fees associated with addressing the first and second CRLs issued by the FDA regarding our NDA for IV meloxicam.

For the 9 months ended September 30, 2019, Recro reported a net loss of $9.1 million or $0.41 per share compared to a net loss of $38.4 million or $1.91 per share for the comparable period in 2018.

As Gerri mentioned earlier, we are increasing our revenue guidance for 2019 from $91 million to $94 million to an anticipated $98 million to $100 million. We are also increasing our CDMO operating income from $35 million to $39 million to $40 million to $44 million; and CDMO EBITDA, as adjusted, from $44 million to $46 million to $48 million to $50 million based on our current trends, including organic growth from our existing customers and new business prospects.

All these projections are based on our current CDMO business trends, including organic growth from existing customers and new business prospects. This guidance also takes into consideration existing contracts and timing of customers' ordering patterns as well as Recro's experience with customers' product market estimations.

I'll now turn the call back to Gerri for closing remarks. Gerri?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [5]

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Thanks, Ryan. In closing, we're pleased with the continued success of our CDMO segment in 2019. We look forward to continuing our progress moving towards FDA approval of the IV meloxicam NDA.

We also remain on track to execute the spin-out of the Acute Care business segment during the fourth quarter, the result of which will be 2 independent publicly traded companies, Recro and Baudax Bio. We look forward to keeping you updated on our progress in the coming weeks.

Thank you for your time and attention today. We'd now like to open the call for questions. Operator?

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Questions and Answers

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Operator [1]

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(Operator Instructions) And our first question comes from David Amsellem from Piper Jaffray.

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David A. Amsellem, Piper Jaffray Companies, Research Division - MD and Senior Research Analyst [2]

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I have a few questions on IV meloxicam. Gerri, first, can you just talk about process and kind of where we go from here in terms of your process, time line? And just help us understand the mechanics and logistics of this -- the appeal process. That's number one.

Number two, can you provide some more specifics on what kind of data you're going to be providing? And specifically, what -- remind us what were the issues that the division was hung up on and how you plan to address that?

And then lastly, on the Baudax Bio business itself, to the extent you get approval, are you going to commercialize the product with a sales force? And what's your general vision for how you want to build the Acute Care business? I know that's a lot, but hope you can help with that.

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [3]

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Those are mad, David. Thanks, David. I mean that's like the History of the World, Part 1. We'll do our best to address these.

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David A. Amsellem, Piper Jaffray Companies, Research Division - MD and Senior Research Analyst [4]

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Which is a great movie, by the way.

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [5]

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Thank you. So happy news is that we're also happy to talk about. So for IV meloxicam, the process has been that after the second CRL, we filed an appeal, which is part of the dispute resolution process, and it was the first-level appeal. Upon review by the -- the ODE Director for that division came back to us with a letter indicating that the appeal was granted, meaning we were appealing the lack of approval of the product, stating that we believe we had sufficient efficacy and safety. And we believe and our experts in talking to us have similarly interpreted her belief, which she enumerates in that very lengthy letter, that there was sufficient evidence that the product had safety and efficacy, but that there was a need to negotiate labeling with the division.

So that's the process, and the mechanics now would be that we are stepping out of that appeal resolution process. We believe, as of now, that there would not be a need to go to a further step because the appeal was granted. But we do need to re-file with proposed labeling and the rest of the NDA goes with it, so that means you also (inaudible) have to provide a safety update, which we would not anticipate to be problematic because the pattern seen in those IIIb studies of adverse events, to all our beliefs right now, looks quite similar to what has been in the NDA.

But anyway, that will go together along with the labeling. And as usual, the annotation of where the support for those labeling statements could be found in the NDA.

We have not really had labeling discussions with the division because of differences in their view of the entire filing. If we get to the more specifics part, we have discussed in the past with our shareholders and with you all as analysts that the 2 areas that Dr. Hertz and the division were focused on was the time of onset, which is not as fast as opioid products. And at the end of dosing, that there is a chunk of patients who have a diminution of efficacy in like the last 20% to 25% of the dosing period.

So we believe that we will be focusing on ways that we can describe to prescribers those effects. In some cases, we had thought that we had provided options that might have dealt with that before, but did not get feedback on them when the second CRL came out. So I would expect there will be some submission and some -- hopefully, some dialogue around how do we achieve what the division thinks is best and is clear for prescribers. We believe that upon achievement of that goal, the product would be approved, and that's our current belief and understanding.

So then, okay, let's presume that we are fortunate enough to get to that stage. We believe that we have been preparing for commercialization of the product before we were surprised with the CRL and then the second CRL. We have not retained the bulk of the commercial staff, but we have a pretty special core commercial team who have been reducing their costs to the company by providing some consulting services that were paid to Recro so that we can hang on to them through this period and keep up-to-date with our commercial plan and what's going on, changes in this marketplace. So we believe that is something that we will pursue.

We are currently evaluating what does that look like. We recognize what is a challenging marketplace, but believe there is still a strong appetite and need for non-opioid options for management of pain in an acute care setting. We've talked in the past about the role that ASCs could play in an early start program as well as the hospitals themselves, which will take longer in terms of their formulary additions.

But that is the current plan. We continue to remain open to other options, but as of now, that's where we're going. Is that helpful, David?

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David A. Amsellem, Piper Jaffray Companies, Research Division - MD and Senior Research Analyst [6]

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No, that's very helpful. I appreciate it. And just as a follow-up on process. Are you preparing for an AdCom? Do you think that's where we can go? Or is that because there is an appeal that was granted, that's not the direction in which we're heading?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [7]

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So we believe, based on what was in the letter and based on what our experts and regulatory counsel have told us that if we can successfully negotiate labeling with the division, that there would not be an AdCom.

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Operator [8]

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Our next question comes from Esther Hong from Janney Montgomery.

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Esther Lannie Hong, Janney Montgomery Scott LLC, Research Division - Director of Biotechnology [9]

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Congratulations on the quarter. So shifting to the CDMO business, do you -- can you provide additional details behind what's driving the increase in guidance? And then also, from this -- the third quarter, what's the contribution from key products? Can you discuss the demand for that? And then how much of that is coming from new business contracts? And what can we expect for new business contracts in 2020?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [10]

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Thanks, Esther. Again, I have to commend the comprehensiveness of your question. So we will do our best to give you some clear answers. So the increase in guidance has been driven by not only the stronger-than-expected performance in the third quarter, but, as you know, we look at guidance based on what we have as current customer order patterns and, to some extent, the success of the new business initiatives that are also contributing. But Ryan, let me turn it over to you to give some more quantitative response.

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Ryan D. Lake, Recro Pharma, Inc. - CFO [11]

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Yes. I mean so through the first half of the year, we really saw our partners' marketing and distribution strategies really being successful and our new business efforts continuing to increase. One of our customers had implemented a new pricing strategy, which benefits us directly as a result of our profit sharing relationship. And they also deepened their distribution strategy with what we believe was some stocking at one of the largest generic sourcers in the U.S. We also saw capsule volume to one of our customers in the first half of 2019 exceed all of their 2018 capsule volumes.

So we're really excited about the anticipated revenue growth and the trajectory, really, of around 30% this year. And with the long-range forecast that we have from our customers, the current market conditions and the prospects of the new business growth, we expect to continue to see that growth in 2020 and beyond.

The business is really strong. It's doing great. You saw earlier this year, we were able to lock into 5- and 6-year agreements with our major core commercial customers. We are also able to expand economically one of our agreements with another customer because these are very important relationships with them, very sticky. And I have to say that our new business development team and the team down in Gainesville is doing a tremendous job. The culture and the atmosphere of everyone really pulling together to achieve the new direction and diversify our historic revenue streams toward these new business wins, we're seeing a lot of progress there. So it's really an exciting time for Recro, Esther.

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Operator [12]

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Our next question comes from Leland Gershell from Oppenheimer.

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Leland James Gershell, Oppenheimer & Co. Inc., Research Division - MD & Senior Analyst [13]

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Gerri, just wanted to drill a little bit further into the review process for IV meloxicam. Could you clarify to us as it moves forward with the FDA and the label negotiations are discussed, are those then still with the same division staff or is it a separate group? How should we kind of think about the personnel on the FDA side given the history of the 2 CRLs?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [14]

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Okay. Thank you. So we've been -- the letter from the ODE reviewing appeal officer has referred us back to the division, which would be [DAP] and to Dr. Hertz and staff for the negotiation of the labeling. In that process, Leland, as we re-file, we would anticipate, based again on the guidance that we've gotten from our experts, that this should be labeling-type review period, which would normally be a 2-month PDUFA after filing of it. So that's the folks we're talking to and what we believe should be the general time frame.

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Leland James Gershell, Oppenheimer & Co. Inc., Research Division - MD & Senior Analyst [15]

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Okay. And then just one question on the CDMO side. With you and the other members of the Recro leadership team moving over to Baudax, maybe if you could comment on what the leadership of the CDMO company will be going forward? And any involvement that you and others who were familiar with may have in REPH as it separates from Baudax?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [16]

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Sure. So the great news is we have a very terrific team at Gainesville who have been doing things that, from my past experience in this kind of space, I would say the team is quite exceptional. They have not only continued to grow and improve our ability to deliver on time in full for our commercial customers in a great quality environment, but the management team, particularly Scott Rizzo, has done a really fine job of fostering, developing and collaborating with business development to grow an outreach function that adds to the client base and brings in new customers with complex dose form problems that we get a chance to develop solutions for, for them, and potentially, through that, to improve the long-term prospects for the company even further. And at the same time, foster and develop the new facility that we have for both development services and high potency development services currently.

They will not have the opportunity as of yet, as anticipated, to run the business without some heckling from Ryan and I, because as you know, we've been handling both sides of this equation to date. And the plan is, certainly, for the first 12 months after the spin, that we would continue to be involved for a public company interface and as a corporate oversight and strategic resource to the business unit at the CDMO.

We will be trying to enhance Scott's visibility to The Street and let people have more opportunity to get to see him along with us and get him some more exposure in that regard. But that's the plan as we embark on the process.

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Leland James Gershell, Oppenheimer & Co. Inc., Research Division - MD & Senior Analyst [17]

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And would there then be any expectation that over time, a kind of public company leadership may be installed into place to work with Scott? Or is it too early to comment on how that will look down the road?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [18]

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Yes. I mean I would say it's just a little bit early only because Scott hasn't had the fun that we have all had together collaborating with analysts and investors. And so we want an opportunity for him to be introduced to that, for him to decide whether that's something that he would enjoy or sees himself wanting to do in the future.

But certainly, we believe there's plenty of time for that assessment and to provide continuity of leadership. We wouldn't anticipate any abrupt changes, and would certainly have had exposure to The Street before something like that would happen.

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Operator [19]

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And your next question comes from Patrick Trucchio from Berenberg Capital.

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Zhilin Long, Joh. Berenberg, Gossler & Co. KG, Research Division - Associate [20]

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This is Iris on for Patrick. Just a few questions on the CDMOs. So first, where does capacity for the CDMO facility stand today? And by how much could utilization, realistically, be expanded over the next few years?

And then on the CDMO fundamentals, we think that is trending far better than what we think some might have expected a few years ago. So how should we think about the growth trajectory of the business over the long term? And particularly, what possibilities are there from a business development perspective?

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [21]

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So I'll do some qualitative, and then we'll come back to capacity, and Ryan can comment on that as a part of the growth. But as we think about this business at the time that we had the good fortune to acquire this from Alkermes, the business was in a different setting and its customer base was somewhat different, remembering that the sustained release verapamil capsule business had transitioned from Watson to Actavis.

And we were fortunate that as of April of 2015, that began a further expansion as Actavis increased the distribution network for that product through their strength being somewhat larger and better at that, even than Watson. And then, just a few years ago, Teva having acquired Actavis, further extended that distribution network. Much as the Lannett business, now acquired from Kremers Urban, as one that bought that business, has also benefited from additional distribution strategy and expansion. So we have been happy to have the good fortune to have partners who were growing and expanding their network and appetite for the product.

In addition to that, we have seen a very stable business in the ADHD side with Novartis. Novartis, for instance, for Focalin, even after that went generic, partially in 2015 and completely in 2017, between Novartis and the Sandoz division, for whom we manufacture the product, that product has hung in there and been quite sticky. We think part of that is that class of agents, clinicians titrating patients up to those extended release doses, often requires a considerable period of time. And so they tend not to make abrupt changes for those patients.

If we look at the Ritalin side of it, a similar kind of situation. Ritalin has been off-patent for a long time in the U.S., but has -- continues to have some appetite for the product in the U.S. and has had a bigger appetite in Europe and a number of other countries that have never had patent coverage. So we anticipate that product will continue to have, we think, a similarly sticky pattern again, partially because of therapeutic area and partially because of the strength and prominence of Novartis and Sandoz.

So very, what I would describe, as stable and then portions growing base business that we would continue to believe will be very contributory for the future.

We are looking for new business to contribute significant growth over the coming years. And that starts with typically smaller projects that if we execute successfully, that client expands and extends that work. And so that will be a natural part of the growth as well as continuing through the expansion of the business development function, which Scott and his team have done nicely and will continue to do, that we would see continued expanded growth demand for the development facility for the early stage high potency work and then an evolution to migration for a number of those products to the commercial side and potentially, for the high potency side to the commercial side as well.

But Ryan, do you want to talk a little bit about why we're doing better than one might have expected right now?

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Ryan D. Lake, Recro Pharma, Inc. - CFO [22]

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Yes. I mean, I think if you were to look historically since we own this business, I mean, we've been able to achieve kind of mid-teen CAGR growth. In terms of revenue growth, we're on track for 30% this year, which is significant. And quite deliberately, over the past several years, we've continued to invest in scale to support the vision and growth that we have for new business and diversifying away from our existing commercial customers.

I mean, over the past 12 months, I think we've invested about $10 million in CapEx growth to support that new business growth. So we're just starting to see the fruits of that labor. And we're in a unique position because we have industry-leading margins. We're close to 50% EBITDA margins for this year. And because all of our costs are fully absorbed, we really have the opportunity to look across the full spectrum. Because you can start with and stay with Recro from IND to commercialization, it allows us the unique opportunity to look at tech transfer opportunities as well as opportunities with customers where they're starting early with us, where we're able to solve those complex, tricky, formulation and development problems that will enable us to generate higher margins, in addition to being able to leverage our already existing fully-absorbed overhead.

In the main facility, we're about 2/3 capacity on about 1 shift. So there's significant capacity to run additional shifts in that main plant. And then as a reminder, we did, last fall, open up the RGD facility as well, which has plenty of capacity left for the new business development efforts that we have to be able to continue to further leverage the outstanding EBITDA margins that we have in this business.

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Operator [23]

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And I am showing no further questions from our phone lines, and I'd like to turn the conference back over to Gerri Henwood for any closing remarks.

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Geraldine A. Henwood, Recro Pharma, Inc. - President, CEO & Director [24]

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Thanks, operator. Thank you all for joining us here this morning. We're very pleased to bring the update on Recro and on IV meloxicam. Hope you all have a very good day. Take care. Bye.

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Operator [25]

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Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. You may all disconnect. Everyone, have a wonderful day.