Recro Pharma Inc. (NASDAQ: REPH) saw its shares fall on Thursday after the company announced a secondary offering. No pricing details were given in the filing, but the offering is expected to be valued up to $57.5 million. The most recent closing price was $8.00. Keep in mind that this is coming after the company recently won in its late-stage IV metoxicam trial.

The sole book-running manager and underwriter for this offering is Piper Jaffray.

This revenue-generating, specialty pharmaceutical company is primarily focused on developing innovative products for hospitals and ambulatory care settings. Its lead product candidate, injectable meloxicam, is a proprietary injectable form of meloxicam, a long-acting preferential COX-2 inhibitor that has successfully completed five clinical trials in the treatment of moderate to severe pain, including a two recently completed pivotal Phase 3 clinical trials.

As injectable meloxicam is not in the opioid class of drugs, the firm believes it will overcome many of the issues associated with commonly prescribed opioid therapeutics, including addiction, misuse/diversion, respiratory distress and constipation while maintaining analgesic, or pain relieving, effect.

Additionally, Recro is leverage its formulation expertise to develop and manufacture pharmaceutical products using its proprietary delivery technologies for commercial partners who commercialize or plan to commercialize these products. These collaborations result in revenue streams including royalties, profit sharing, research and development and manufacturing, which support continued operations for its subsidiaries as well as research and development of proprietary product candidates.

The company intends to use the net proceeds from this offering to fund the New Drug Application (NDA) filing and regulatory approval process and the initiation of commercial activities for IV meloxicam, its planned IV meloxicam Phase 3B program, investments in pipeline product candidates and for general corporate purposes. Recro will need additional capital to fund the completion of its commercial infrastructure, including milestone payments and post-launch activities for IV meloxicam, subject to regulatory approval.

Shares of Recro Pharma were last seen down 7% at $7.41, with a consensus analyst price target of $22.20 and a 52-week trading range of $5.59 to $12.50.

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