SCTL - Earnings call 4 2021 | Societal CDMO Inc

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Operator

Good day, ladies and gentlemen, and welcome to the Recro Fourth Quarter and Year-end 2021 Financial Results Conference Call. [Operator Instructions]

As a reminder, this conference call may be recorded. I would now like to hand the conference over to Stephanie Diaz of Recro's Investor Relations Group. Please go ahead.

Stephanie Diaz

you. Thank you thank joining for and us. Hello, call, and Ryan today's we have CEO; and President Enloe, Lake, David On Chief Officer. Financial

business, be and quarter we'll XX, development activities providing overview financial including we manufacturing and of corporate updates prepared for year After ended Today, will results on welcome our Recro's questions. an XXXX. and the contract remarks, December your

forward-looking could this statements to concerning conference I'd the you the with the Act risks Before of like caution any will number that or these a contain statements, made from Reform XXXX, filings we update these which company to company, the the matters. made certain company's Exchange to today, and call the of assumptions, and results and I during today. review within March meaning of other revise Litigation Private uncertainties. statement X, begin, comments involve of and all encourage current differ concerning Commission undertakes Actual Securities Securities beliefs XXXX, the of no obligation

certain release Our of include discussion information. call will press and this earnings non-GAAP

can earnings press release, our corporate including You website at find non-GAAP reconciliations, recrocdmo.com. relevant our on

call CEO. David over turn Recro's President Enloe, and With I'll that, the to

J. Enloe

focus accompanying strengthening of strategic time, and Thank One of been in via who leadership for to the at as who are as for X had of and Recro's to sheet having report time, Recro's our demand. of X to new year both organic and goals on XXXX. and in restructuring webcast. Slide progress as my and well you participating that to of our finally, order announced upgrade At call CEO, during I'm comprised balance customer ago, great hosted optimism expansion And including X the augmentation these we've I has vision expand you, support and less earnings our new diversification pleased board deck. that Stephanie, and growth, continuing to first facilities XXXX, operational inorganic months. of company and a great everyone areas than now today thank of growing I dialed to made that I those I'm organization customer better our support capabilities position base, each very on with

Our success for achievements QX and trajectory a financial XXXX results. full new has for on a the I provide the over an our as will last year XXXX and year our well of company exciting XXXX. review vision of overview following placed our as

call over With that, will I turn the to Ryan.

Ryan Lake

Thank you, everyone. afternoon, Good David.

Before today I to financial XX, the XX-K, the which are will I'll quarter with brief and call results begin, the additional on issued press in and our on our to prior details included be SEC. ended release the in provide call this for XXXX, fourth overview, financial full file year on our in December addition Form

higher due This the million represents increase for in resulted revenue from result due of with now to during higher million legacy Slide the as ended The December in in of business which of XXXX, to much quarter. acquisition our business increase in sales million. fourth lower were quarter orders revenues IriSys, XXXX, the primarily the to prior of customer increases begin timing Turning X. XX, was non-legacy well quarter of revenue an a period. year $X.X fourth of from our XXXX. I'll of financial for $XX.X results Revenues $XX.X the overview as our XXX% the compared revenues to recorded commercial

Diego due to compared production by material facility XX, $X.X increase due the volumes. of was for to the the million XXXX. offset XXXX, $XX.X was of for December million sales The clinical of increased and San IriSys of period product and $XX.X higher Cost to primarily the sales, million quarter ended costs acquisition comparable from

for expenses were of related costs compared expense. IriSys XXXX primarily administrative quarter related costs administrative to and our million deal and to associated was $X.X general by team, public acquisition the and the The $X.X offset million fourth lower Selling, of period. million increase stock-based with recorded to in San Diego integration company expenses $X compensation the and

operations integration As sales. October general in administrative selling, now a associated in plant classified effective our operations organizational to who certain and structure supported result these reorganization employees X, of October with and Prior expenses of cost and our expenses. were and X, XXXX, are multisite our XXXX, employees support classified

was for expense seller's for offset under compared the the December by interest $X.X XXXX. million as component on in to decrease $X.X reduced an purchase was of increase the credit comparable decrease the in loans term which due well as from of the borrowings IriSys rate a decrease interest of decrease with XXXX, an This XX, million period primarily million ended Interest the loan agreement. overall note, a The months of agreement our the was to Ethereum under partially X acquisition was price. credit $X.X term

EBITDA prior to For to XXXX, $X.X or $XX.X million the adjusted the per $X.X $X.XX a period. diluted net the comparable December recorded of company XX, $X.X for period ended a million year XXXX. loss the of $X.XX for per quarter million share as as was or loss period million in diluted the net share compared of compared

full overview our an of provide year now will the financial XXXX. for results I

as Slide Revenue for product million to increase increased of the for million, including higher business, due in The well as $X.X our was period December from same Moving commercial project. $XX.X year XXXX. increase revenues non-legacy in to of revenues acquisition was million compared result the from to the XX% transfer of the X. revenue a primarily revenue XX, ended XXXX, $XX.X IriSys tech a

in as commercial certain XXXX, XX, of $XX.X to the and of facility for $X.X in million in $XX.X of lower December announced relatively The business product partially of legacy year due the XXXX volumes to is of XXXX quarter to commercial from our compared of due other discontinuation compared Diego flat ended first rebounding lower to impacts X incentive costs was period growth XXXX, remained products the has credits acquisition reduction was XXXX costs same in prior cost million commercial XXXX, by the IriSys for XXXX from tax partners our in force due in employment offset to lines sales primarily due saw COVID-XX. the sales the the Despite XXXX. XXXX. our compared to in market year of increase by the the and commercial to Cost million from San

seller's increase for compared lower addition administrative $X.X and primarily of an XXXX, agreement December million cost with during primarily Diego and the years Interest loans IriSys term Selling, from $XX.X with borrowings This to acquisition of reduced December credit overall by expenses interest the related of ended to million our same note, in team, were deal expenses administrative general was the was was for loan offset to XXXX, ended and the of our year price. company and to related by offset XX, in and increase acquisition San XXXX. was the The $XX.X well Ethereum the on due credit component XXXX, period partially $XX.X agreement. integration $XX.X which an $X.X expense. as million respectively. The stock-based purchase associated decrease the as in under term IriSys of million million decrease compensation under costs of XX, the decrease public and the a million rate was expense interest the

the reported diluted net adjusted comparable diluted Recro For XX, in loss $XX share to period for a the loss year prior $X.XX million period. the the $XX.X year per $X.XX XXXX. million of December or or EBITDA of million share to compared as a $XX.X period million $XX.X XXXX, was ended for net compared per in

cash December million equivalents XXXX, XX, to year. of of Our end the cash and prior as were $XX.X as million fiscal of the $XX.X compared

financial overview. my concludes This

reviewing over those for will and on to reconciliations, our the the in non-GAAP update David this turn I an Slide in achievements call please For see now back slide deck. period. interested during XX operations

J. Enloe

year, to it I our for Thank of every to we and successfully an overview on delivered you, like announced XXXX. element At plan, an fair we I'd believe this time that provide last of Ryan. accomplishments. is say ambitious plan these

company's which our efforts entirely our which first of acquisition expand the and announce business Our pleased including August, later reconstituted last detail address the XXXX, our IriSys customer diversify achievement as I'm several for the as in was tripled, result base. team, during development a is well is company's more base greater I'll the a significant XXXX. than goal of in of size. This that to to customer increase company factors,

of that the customers clinical ability the or manufacturing, a Recro gave Recro's any critical expansion range needs of this the stage to customer occur capabilities can growth, the which and trial meet from support to product customer-specific companies our biopharmaceutical cycle. due limiting span range early company's more topline to to variability is of highlighting at services of broad These issues. the to base, life addition In significantly commercial diversified revenue full segment-specific

our proceeds public May a for combine We position financial our when inorganic offering. our and raise Ethereum. our XXXX, our we the than our and XXXX and made the XXXX great Again, began by $XX strengthened of year, a was revenue gross progress total goal oversubscribed the during and to $XX.X in debt growth. in the this raising partner in million considerably better When approximately strengthen XXXX debt significantly the balance an that began. ended financial sheet. company's balance, regard. to we with delevered In restructured on organic support to balance stronger announcement million in Through restructuring, Our we capital made you underwritten progress from both company we with second further successfully of the successfully EBITDA this had debt we Recro sheet order instrument position of of finance increase

leadership our organization, our growing and customer to continue The third support fourth and operational facilities capabilities expanding and and upgrading our finally, to XXXX to for restructure were demand. objectives augment and

upgrade as trial a half we our capabilities, revamped appointments to During the company In increasing X development enhance utilization and suite packaging critical executed made facilities Board. of and clinical the our our line. team labeling to new year, the existing our both according plan. potency areas, business company first as continued well and of high The to also and

our CDMO, and revenues our Diego-based strengthen our Recro and this that year, substantially X during Recro IriSys, San that Bolstering our a last early In further. made summer, strategic Through a company diversified combination, customer company's stability our XXXX, expanded the base, the own. further the position. advanced of with the complement August acquired strategic of even each capabilities move successes greatly enhance objectives financial

impressive With the combined XXXX of as the broadened The the experience and well commercial as and and abroad. of talent regulatory of more acquisition versatile IriSys well organic track infrastructure range all the is our and broader U.S. in CDMO or servicing as of the with company company geographic strong IriSys quality to transformation leadership, made a of efficiently as result addition our CDMO already capital team, a our footprint. our in the stronger net and capable solid a and attracting dose record investments customers

again early in to business, touch my as Phase diamond-shaped work see growth, icons, shown the segment We bit critical II. that significantly in the project I'll through Slide expanded our and X, acquisition former our comments. on future As later this which in referencing I'm this represent a IriSys development

As quarter full XXXX, the and of achievements, stronger fourth year and the XXXX were than result respectively. of significantly year full a fourth these quarter

fourth $XX.X revenue the also the company The Business quarter. fourth year since also increase $X company recorded quarter, in significant XXXX. the of achieved development during quarterly compared strong the million to our million was in highest During EBITDA a prior revenue, quarter.

X, in large the in as wins business to expansion our increased team. XXXX, dramatically new and due compared As part in and again, activity Slide of to BD seen XXXX reconstitution

Company, the for significant a through we which site within commercial number services a including be commercial we portfolio. highlights, period, key execution will Otsuka a U.S.-based production agreement master Pharmaceutical supply the with product had the and of of During

serve We are developers with as U.S. to our supply therapeutics. source ability work for and very highlights believe small expand a molecule this Otsuka of pleased trusted to agreement our

nasal terms Translational microparticle the company spray CMC development contract Health. encapsulation awarded at quarter, for device. support of a NES-XXX, the via will a for Recro of in molecular envelope technology LENK, form a by of dosage is the development National the and also During Advancing the NCATS, Institutes contract, manufacturing Center the new deliver LENK that National Sciences, patent-protected or of this of Under and prepared was

project drying sophisticated providing to pleased the utilize and this company's addition process. been this have are spray early-stage for In very complex capabilities, selected we to support, will development

that to a And multiyear a dermal company was $X.X containing manufacture subsequent quarter support a the of as placebo the a study. in department pharmaceutical the cancer chemo include and U.S. the new development, well for it which a from matching a end, clinical product, Under cell planned planned to prescribed basal clinical activities prevention formulation, manufacturing, recurrence formulate, the terms ingredient of designed contract trial, labeling prevention development company announced GMP and manufacturing method awarded of carcinoma. compound will supply million trial, as analytical effects services the active to drug clinical These will on the is investigational government. new packaging of the contract, key the topical GMP formulation evaluate with

we well as services company's formulation showcases clinical this Again, project unique as believe trial broad-ranging the expertise. Recro's

While we grew this for revenue fourth a the more beginning XX%. full strong IriSys increases When clinical company's by the organic year were very XXX%. the growth including had results revenue, even which business with to quarter, new acquisition, impressive, year-over-year XXXX

company's cost XX% from improved spread this During structure and fiscal larger improve XXXX in our we X% a the XXXX, by to year, over fiscal to to XX% gross as the client trend margin we base. continue in expect

in $XX XXXX. XXXX million XX% in million grew $XX.X EBITDA Also, to from

into IriSys significantly acquisition our expanded the and and the business Beyond enhanced both important expanded functions our post facilities operations. note optimize expanded and XXXX, customer And sustainability footprint its on while successfully capabilities coasts. this creating team, that enhanced financial to continuing efforts and operations did in our our and achievements build it's company by leadership our to company base, spanning diversified increased

into of expanded materials, reduce its the Recro. for environmental year, to water efforts existing organization programs and by the consumption energy utilization was in and its During measure, minimizing the company's very building efficiencies year a the impact sustainability waste. any By company integrated while designed combined the XXXX strong

our a I chain at level, commercial to delivering you our would quality full, accomplishment the a recognize OTIF XXX% additional numerous on-time when in be Gainesville not or challenges commercial remiss supply consider products teams facility. in is manufacturing, remarkable for and established we on our positioned the company believe XXXX elevate to to exceptionally tackle and COVID pandemic We that In presented. goals believe the goals is we've will of beyond. the company number XXXX, the Recro well further focus sector. a for will in This

strategies, of On and and strategy includes mission an sales comprised and strengthen objectives. and building both visibility position. updated employees' with this the Slide achieve marketing financial and our for growth the customers strategic continuing working and stronger experience is X, identity for company our enhancing X This executing key segment-specific our organization, to

X specific profit-sharing solid finally, Slide There we we oral our strategy are are programs the dose market discrete of as The verapamil; I'm currently products first now. we the sales to support. each segments early-stage that successful supporting: to products; is on commercial realign that clients and legacy serve, such in whose and the our development X most market be segments

effective XXXX specific ability operational most this of base talk the for development sales of these customers be execution each Our to for using maximize our will each approach measured and differentiated for targeted X The resource enough focused goals that by are decision-making segments believe as are and and processes for we well prioritization. different ways segment. we as our our customer strategies our optimize

quality that order a ensuring committed appropriate manage single our commercial a early-stage use we successfully have qualification across and most risk-based batches programs, now ongoing to have quality clinical phase in we while we to in-market effectively approach system footprint, we company-wide example, to are deployed For production.

present in Additionally, our skill historic people, highlighted our the more those The and sets, and are XXXX Recro's IriSys. both as of as our partner to to brand effectively market market has completely Recro's capabilities to opportunity communicate intelligence as future. an clients during Evolution culture well biopharma perspective refresh outdated our are on somewhat a to

logo new we a who going look as are in reflection our name, believe are will a company. accurate look coming the weeks we and of to and where provide We sharing more it company forward and

second capabilities. XXXX, late The our groundwork which XXXX, our the to continue and from organizational in will optimize objective during expand is structure

acquisition optimized. IriSys, XXXX. synergies strong We've and which will Following and work the and systems processes. sales captured being integration of regulatory formed ensure and health and in work the marketing, environmental team, and and discrete quality excellence XX safety systems, company human and streams engagement on into an are continue to is synergies focusing This efficiencies created operational opportunities our people practices, business policies, resources all

also operations our customers. And We first continue progress as expand and to customer to attract announced last enhance finish capabilities fill are expansions, and of we will great aseptic week, accommodate lyophilization our and our current we capabilities. the base offering new these our growing making with

and the of final underway. is commissioning activities As suite completion dedicated very validation near are today, and

to third XXXX experience. is Our in goal improve our further customer

each While has as established to and our it's we harmonized it improve. our high-quality of where that believe through is makes ahead, is client always a important reputation our sense, partnerships room our sites. there process strengthen It interactions, In long also Recro create its the the trust we valuable clients that goal year development commercialization. experience enjoyed from have partner, unparalleled to at

And same are approaches management, our of across said We to those and team our the consistently our to approaches have and want outstanding success, effective at we organization. be customers while to can critical client project deploy communications Recro. our

and corporate experience establish culture. we In XXXX, to employee industry-leading aspire an

believe recruitment, and success, strengthen an our In at flexible better we our we As both outcomes will for clients inspiring, to our employee engagement doing Recro. rewarding financial retention, and workplace, performance. and experience our everyone create employees for to is better company's a drive leading goal so, for performance and better it our

during its will to And financial XXXX, take the finally, company improve steps strength. continue to

As a With our down debt as consistent and carefully cash, way. our assets part be to owned, of several reduce transparent with to will can real non-dilutive a work to to this, have noncore estate projects order in in such manage the our pay in to debt, we and engaged monetized explore respect our debt engage community. fashion continue investment in which we

good a was XXXX year.

year Given the the revenue the ability And million year very for projecting XXXX, while representing that and be be for further our our program, confident created, year-over-year legacy $XX established we in to I are ahead. can us, momentum consider for growth I'm million is This to am XX%. very topline appreciated goals meet XX% we have anticipated pleased flat. to of basically announce between namely and when $XX you the full the profitable growth of verapamil between year-over-year that products,

XX present. progression of Looking at point through Slides which shows from to series in XX, illustrated of is this slides, best this growth XXXX the

see, a upon XXXX with in dependent you advances beginning highly revenue legacy organic few can from products an growth Recro the in generated XXXX. is impact in As only to have

into from products driving upon now clinical growth. However, dependent significantly the are legacy revenue when with multiple you acquisition take new we the consideration, IriSys less programs

trend such approximately business. to XXXX to in XX% customer XX% to diversified legacy looking expect our continue. result, and business we has share And of revenues of been our a from beyond, this that over As we ahead reduced the XXXX, our successfully

Looking XX at now. Slide

sales the year-over-year, year XXXX. above for is to to rates in projecting, we've to well XX% several past by quarters. are approximately This full industry the obviously represents built XX% momentum needs achieve business our and us the IriSys grow growth growth non-legacy So assuming in we

now XX. Slide I'm on

goals ability year achievements last meet our to diligently, met XXXX and we for have the out clearly we laid our working ambitious as beyond. like is that steps of in team plan and year, last with We to the execute taking an each exceeded As our demonstrate year, ahead, XXXX. and the ambition required expectations and believe of

our become Looking our dedicated financial a our our ahead, position leading to growth we our improved expanded service elevate to team company expertise, CDMO. to leverage and plan enhanced offerings,

my the open We questions. Operator? remarks concludes prepared for This now can for today. up call

Operator

[Operator Instructions] Johnson Our first question Stephens. line comes Jacob of from of the

Jacob Johnson

sales sales business and of couple some kind Maybe of the first questions transfer. differentiated the David, new on side of and there. a legacy between work strategy on initiatives early-stage the the development

terms -- a to that to of sense seems ton me. In make

of how that of your drive of And is approach? how for terms do In how operationally, sales change and kind large hard a team? that you

J. Enloe

Jacob. for Thanks Yes. the question,

I we expertise to that differences in So very subtle, that to got market added We've would as anticipation we set need the to that team forward. specific we we've some take. there here and are, work say, some forth intended but of this stratification approach move

expertise. And add been so we've able to

area. We have expertise trial in the clinical services

the solid expertise commercial dose in have area. We role

early We CDMO have expertise in the development space.

audits about diligence how proposals who are decision-makers programs. those quite frankly, in in sort be are so they those required it's also organizations, ought to clients what is prepared, And of with quality the with and depending those on for spaces, where different

shifts. major like sound those so And

entire think and we're project Director I the Management coming the we it, across understands oversee organization time who how organization of that. CDMO, a to of entire all prepared programs. talking towards management lot a sorts will in We've those spending appreciates we're add and in major new able been for the a Project from of orient but about differences

business part we're way important one of an and our the it's I with moving to confident So forward. respect feel strategy

Jacob Johnson

familiar Recro's of a the it. lot with being hires new side. Got takes And on talk their with Obviously, of for and the Can people times, your offerings terms about a target get I of you ramp. time where customers? to then development think, some just business is it familiar kind of team mentioned, business in those development being couple you

J. Enloe

Yes.

-- fruits we've that is has about the it that the essentially traction success, -- a plus/minus, -- of what on team ensure talked is depending and say spent seeing them to opportunity lot be respect of now been in right not to past we've the level types the gained So and quite, opportunities, place, opportunities. we that in of And that a of the we're year so of of for in the individual. to with the believe meaning but the size definitely quarters number place several I'll took also

done a way been those those training capabilities there's understands event in and than different very rolling in people is And San Diego because sure else completely this lot out strategy. gathering before. it's to a in right So everybody everybody with management different sales same a now of make training timely question there of that project a now focused on

So working I I and of back quality them I together. in often they're meet of in-person is that feel with for we're speed, the offsite still go team up being the front to like while but accelerate rolling about somewhere being able can't clients offices, to programs. conversations to to confirm their that able they're and quantity does should we that able -- And say, to well anybody be and can also that have

Jacob Johnson

one then for Got last it. me. one just And

talk and tech source opportunities Just to win? of you going them on low easier opportunity how that there then they them? are space? of kind Or back in when to probability there. are you what shots that the how events And are? goal go Like set you are the looks outline How areas like. sales I'm just opportunities curious large the just for after many there one many key Can strategy, transfer are? those second usually of about of kind is those

J. Enloe

number you see FDA you approvals, -- new that can mean are I approved. if a approvals look than a at of manufacturing there's there there are being greater drugs Yes.

give of it's piece site transfers that measurable So being but don't percentage, to I there are and are activity. a approved a even want

do sure types the very opportunities them are of about -- we need small. hear that we're some at, make so we are of looking to And

of very And to a able encountered we a our so would would very meaningful have on, on with and consent, for are that few transfer it absorb we've do I economic to had And it or respect bid that's would source very quite second slot or that completely an capacity. payback are a is everything and long make low. then to be that large, frankly, be have would we which capacity, to impetus there where mean but there they and completely is to consume that, the to subset drug opportunity the them right? the be supportive a but not in it's us, for which can

sorts that expect the would where I investing to say program the some a for types that technical types and should of with success. of than conversations population supply we're is the And to want we of enough have programs there So are very in earlier conversations that see I emphasize chain-related of in again, an sponsors really different science those the solution. we

Jacob Johnson

the make progress it. That XXXX. Got on all Congrats in sense.

Operator

Hewitt Our comes next question from Matt of Craig-Hallum Capital.

Matthew Hewitt

cadence guidance? from thinking early this might it means understand you're gross QX be off, relation QX Maybe us weighted? of that first and impact any COVID help margin and back-half the how year how your there should in we just Is Or year. about revenue to the the be thinking more cadence in about

Ryan Lake

Ryan. the Matt. for This Thanks question, is

but $XX to full in really the that our capture are million, good capabilities about $XX million year obviously marketplace. commercial just that I'd growth feel that giving long-standing we're market guidance, guidance robust history quarter-by-quarter well the with So feel We we to and the guidance. not generally, today, positioned say, and we in gave

legacy to expected revenue Our our in percentage or development low XX% XX%, and revenues non-legacy year to increase full increase the business IriSys single-digit business. assuming is

development And XX% backlog XX% rate especially or the is good I been overall, for the what backlog with And like XXXX. mean ending we revenue sign in non-legacy we of open the in year. portion, growth with during revenue have the business. able the the the customers, So we to proposals have really we line $XX think to of the for stronger that million in of pipeline never we have terms have, terms our we're has sight

exciting it's So for us.

bit So XXXX range. the We're taking incentive high, were XXXX. to your during remain with gross we received the other, the question to in a gross comment margins. I margins gross The regard credits is mid-XX% consideration tax to expecting into that think, margins

overall have hiring that $XX utilization So benefit then the and $XX gross revenues received projected margins And a just tax we credits anticipated XX% those COVID-related the million perspective, excluding credits, million to XXXX we're compared EBITDA. we're a incentive additional tax with increased more in during our seeing EBITDA higher incentive an terms that's credits. of to And we excluding that in 'XX, are roughly that the offsetting incentive increase projecting tax of XXXX. in EBITDA, about from than

puts takes the really there related credits cost offset well the and EBITDA is are revenue. of in inflation guidance as to we by nonrecurring and $XX with The some takes into of lean as so increased COVID-related million tax associated spend absorption incentive almost are So related and higher some hiring because or running that account in that really the XXXX.

Matthew Hewitt

maybe Is helpful. you segments? is a headcount of the then -- segments? I make by on some up to What feedback of I that all out each those is Or salesperson, is how -- selling That's provided. And it. X want they And different understand this team? to the split team sure sales kind correctly. follow-up that just team just X are Got for the that today

J. Enloe

matter expertise an Yes. offerings I conversations subject all would those on bringing BD detailed other expectation soon David. hired being it's absolutely then we gets happening in as bit more interact. and offerings, that with our our it that be spread to This across the and and the We're reps And are there's is of the scientific talent say held by Matt, within but folks. clients diversified as a sales little obviously, of any they technical. to

on our where several add clients we've been about of material GMP able opportunities are back to over couple to the services. clients front, years, clinical we've some the So existing talk these trial trial new now seen us past coming clinical to of

and it's label add-on. packaging distribution, and a So nice

tandem in sales combined are so And the those solution. working members to in bring cases,

Matthew Hewitt

then one Got and I'll it. maybe hop queue. one, And then last the into

that especially some I newer in the compared number as think contract, are of pretty would I but I where variation, mean, sign that? just at about tremendous a than typically at you once take are to opportunities a within of the of able much all get even a a a Regarding do development on But pipeline. tremendous those Or on into amount there's progress, revenues? do does today. deck August looking those side, some the -- you of contract. you your increase signed two? I your slide or we quickly in those How you big -- -- opportunities, longer quarter back mean, Obviously, to turn was the you're imagine started average,

Ryan Lake

the for question, Thanks Matt.

really generally, say, to it takes to on months quickly on would get the I availability about their average, but X started. depends how ready they're So it API and X yes, client,

Operator

Rains from comes question Christine William of Blair. next Our

Christine Rains

that? the Otsuka expansion any transfer, quarter. Congrats color And on on in the the updates tech just if I second beyond Do was some expect to you XXXX? product of get opportunities you any you still have seen hoping half there? commercial have production

Ryan Lake

Ryan. the for thanks question. is This Christine,

registration the the end half with the track by on XXXX. of still matches of we're completion with first the So expected

to they're, be on in 'XX, or expect in approval depends receive manufacturing think, 'XX really when I in quantities that's the commercial early back. anticipating either late We to

there all thereafter, when continue a that's kind of that strong but expectations. a build to and we So relationship with the Otsuka we're believe delivering very market their subsequent entering would be on

Christine Rains

potential are there is there? your and any portfolio. suppressed of are Is you It product seeing any my still Great. just comfortable stability That's there? hangs you volumes legacy with in script pretty like helpful. risks the second one fine? on seems And ADHD the Are like products. pre-pandemic core terms Or in And ADHD levels? you hypertension pretty upside then from seeing

Ryan Lake

Yes.

trend baseline looking the a boost, kind the show XX-week say pre-COVID, but at scripts, would pediatric and an below are levels would do I from just still that of end-of-year ADHD of got say. So volumes recovery I they

think we that's positively. trending So

overall SR, As bringing verapamil to Teva to of up the market. to them Teva steady has XX% and it relates about remain about continues capital picked actually and XX% market verapamil share,

we as that a view So positive.

saw, We deal also strategic they believe shift in attention. generics, you BioCorRx has been probably focus biosimilars biosimilars week and BD's a this business their on announced earlier and Beatrice with to that and complex purchase

for on for could for of is those us us said positive them product rationalization a and potential first what view be -- series and levels. an asset we either in least a was opportunity or number at as sales, So activities additional they of this by

Christine Rains

would Great. are how one you of of color for supply be your cost give chain wage inflationary but concern terms guidance, in are those pressures? How me. great. there just And any can in terms then one last saying to you say, heard you I baked more in XXXX

J. Enloe

let I mind is just -- me say top Certainly, is David, of us. it for this Christine. Yes. mean,

going And so is the and frankly, because side, some of real market and that's the competitive be company important on one there to the our scientific tenure embracing in costs, are staff, committed we the to with particularly clients. to that that's from we're the the remaining our competitive labor increased market in stronger-than-expected very respect our very advantages have, and quite are to manufacturing we something fact

stay are ahead to and those rising. So we're wages out obviously remain going and of competitive, that

expect to our to are clients for we raising need prices that to We going the performing of to and by our sorts subsidize receiving the up, be that being -- are expect clients our are we're our prices those as having that going able more we with program to discussions anticipate we're their prices not development while raised us. not services go to

have leadership inflationary operating as an something external of lot and company and really never everybody's expertise that environment, people other assertive a to very a nuances experienced before. spending which we're company understand on, about, business our a the frankly, So in it's time accessing being in team of

Operator

like I'd Sir? over call closing to time, David remarks. back the to turn Enloe this At for

J. Enloe

chain clients, and continued year for again particularly, our Thank achievements everybody ahead. and Many the team We supply an to you thanks for support all Recro XXXX. of participating other exceptional partners great to today service for excellent to Recro. and members your providers and our many to of look forward in

Operator

for This you participating. Thank conference today's concludes call.

now You disconnect. may

Societal CDMO (SCTL) 1 Mar 222021 Q4 Earnings call transcript