Exhibit 99.1
Recro Pharma’s Board of Directors Approves Separation of Acute
Care Business Segment and Declares Special Dividend Distribution of
Baudax Bio Common Stock
MALVERN, Pa., November 5, 2019 – Recro Pharma, Inc. (NASDAQ:REPH), a specialty pharmaceutical company with a high-performing revenue generating contract development and manufacturing (CDMO) division, today announced that its board of directors has approved the plannedspin-off of its 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 two and one half (2.5) shares of Recro common stock held of record as of the close of business on November 15, 2019, Recro shareholders will receive one (1) share of Baudax Bio common stock. Shareholders will receive cash in lieu of fractional shares. The special dividend distribution is expected to be paid on 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 become 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.”
The stock dividend distribution is subject to, among other conditions, the U.S. Securities and Exchange Commission (SEC) having declared effective Baudax Bio’s Registration Statement on Form 10, as amended, which Baudax Bio has filed with the SEC. The Registration Statement includes information regarding the details of thespin-off and Baudax Bio’s business.
No action is required by Recro shareholders to receive shares of Baudax Bio common stock as part of this special dividend distribution. Any holder of Recro common stock who sells shares of Recro common stock on or before the distribution date may be selling the entitlement to receive shares of Baudax Bio common stock.
About Recro Pharma, Inc.
Recro Pharma is a pharma services and pharmaceutical company that operates through two business segments, a revenue-generating contract development and manufacturing, or CDMO, segment, located in Gainesville, GA and an Acute Care segment primarily focused on products for the hospital and other acute care settings. The Company’s CDMO segment leverages its formulation expertise to develop and manufacture pharmaceutical products using its proprietary delivery technologies and other manufacturing services for commercial and development-stage partners who commercialize or plan to commercialize these products. These collaborations can result in revenue streams including royalties, profit sharing, research and development and manufacturing fees, which support continued operations for its CDMO segment.
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