Recro Pharma, Inc. · Item 8.01 Other Events. On October 1, 2018, Recro Pharma, Inc. (the “Company”) issued a press release announcing the opening of an expanded 24,000 square

UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

FORM 8-K

CURRENT REPORTPursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 1, 2018

Recro Pharma, Inc.(Exact name of registrant as specified in its charter)

Pennsylvania 001-36329 26-1523233

(State or other jurisdiction ofincorporation or organization)

(CommissionFile Number)

(I.R.S. EmployerIdentification No.)

490 Lapp Road, Malvern, Pennsylvania 19355(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (484) 395-2470

Not Applicable(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant underany of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 8.01 Other Events.

On October 1, 2018, Recro Pharma, Inc. (the “Company”) issued a press release announcing the opening of an expanded 24,000 squarefoot GMP development and high potency product services facility in Gainesville, GA. A copy of the press release is filed as Exhibit 99.1to this Current Report on Form 8-K and is incorporated herein by reference.

On October 1, 2018, the Company updated information reflected in a slide presentation, which is attached as Exhibit 99.2 to this CurrentReport on Form 8-K and is incorporated herein by reference. Representatives of the Company will use the updated presentation invarious meetings with investors from time to time.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are being filed herewith: Exhibit

No. Document

99.1 Press release of Recro Pharma, Inc., dated October 1, 2018.

99.2 Investor Presentation of Recro Pharma, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.

Recro Pharma, Inc.

By: /s/ Gerri A. HenwoodName: Gerri A. HenwoodTitle: Chief Executive Officer

Date: October 1, 2018

Exhibit 99.1

Recro Announces Expansion of CDMO Service Capabilities

MALVERN, Pa., October 1, 2018 (GLOBE NEWSWIRE) — Recro Pharma, Inc. (NASDAQ:REPH), a revenue generating specialtypharmaceutical company focused on therapeutics for the hospital and other acute care settings, today announced the opening of anexpanded 24,000 square foot GMP development and high potency product services facility in Gainesville, GA.

The new site, which is near the existing 97,000 square foot, DEA-licensed CDMO facility, houses an expanded development spacefocused on creating unique oral dosage forms, solving formulation, process and analytical issues, as well as providing additionalcapacity for clinical trial supply manufacturing and related services. In addition, the expanded facility has specialized space dedicated tothe development and GMP manufacturing of high potency products. The new development facility is currently operational, and the highpotency GMP suite will be operational shortly.

“Pharmaceutical companies increasingly need partners with specialized expertise in addressing their formulation and manufacturingchallenges and this expansion of our CDMO facilities is in response to the increased demand we are seeing from our clients,” said GerriHenwood, President and Chief Executive Officer of Recro Pharma. “For several years the Recro team has demonstrated its expertise inGMP drug manufacturing and development, offering our clients the highest quality services and technical standards. We believe theseadditional facilities and capabilities will allow us to provide a broader range of high quality services, both to our existing customers, aswell as to new potential clients and partners.”

About Recro Pharma, Inc.

Recro Pharma is a specialty pharmaceutical company that operates through two business divisions, an Acute Care, hospital productdivision and a revenue-generating contract development and manufacturing, or CDMO division, located in Gainesville, GA. The AcuteCare division is primarily focused on developing innovative products for hospital and other acute care settings. The Company’s leadproduct candidate is a proprietary injectable form of meloxicam, a long-acting preferential COX-2 inhibitor. IV meloxicam hassuccessfully completed two pivotal Phase III clinical efficacy trials, a large double-blind placebo-controlled Phase III safety trial, fourPhase II clinical efficacy trials, as well as other safety studies. In May 2018, Recro received a complete response letter (CRL) from theFDA regarding IV meloxicam which it is currently seeking to resolve. As injectable meloxicam is in the non-opioid class of drugs, ifapproved, the Company believes it has the potential to overcome many of the issues associated with

commonly prescribed opioid therapeutics, including respiratory depression, constipation, excessive nausea and vomiting, as well ashaving no addictive potential while maintaining meaningful analgesic effects for relief of pain. The Company’s CDMO divisionleverages its formulation expertise to develop and manufacture pharmaceutical products using its proprietary delivery technologies andother manufacturing services for commercial and development-stage partners who commercialize or plan to commercialize theseproducts. These collaborations can result in revenue streams including royalties, profit sharing, research and development andmanufacturing fees, which support continued operations for its CDMO division.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements reflectRecro’s expectations about its future performance and opportunities that involve substantial risks and uncertainties. When used herein,the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target,” “intend” and “expect” and similar expressions, as they relateto Recro or its management, are intended to identify such forward-looking statements. These forward-looking statements are based oninformation available to Recro as of the date of this press release and are subject to a number of risks, uncertainties, and other factorsthat could cause Recro’s performance to differ materially from those expressed in, or implied by, these forward-looking statements.Recro assumes no obligation to update any such forward-looking statements. Factors that could cause Recro’s actual performance tomaterially differ from those expressed in the forward-looking statements set forth in this press release include, without limitation: theCompany’s ability to resolve the deficiencies identified by the FDA in the CRL for IV meloxicam; whether the FDA will accept andapprove the Company’s amended new drug application (NDA) for IV meloxicam and, if approved, the labeling under any such approval;if the FDA does not accept the Company’s amended NDA, the time frame otherwise associated with resolving the deficiencies identifiedby the FDA in the CRL and whether the FDA will require additional clinical studies to support the approval of IV meloxicam and thetime and cost of such studies; the Company’s ability to successfully launch and commercialize IV meloxicam, if approved; the length,cost and uncertain results and timing of the Company’s clinical trials, including the Company’s phase IIIb clinical trials and anyadditional clinical trials that the FDA may require in connection with IV meloxicam; the extent to which IV meloxicam, if approved, isaccepted by the medical community, including physicians, patients, health care providers and hospital formularies; the availability ofcoverage and adequate and timely reimbursement for IV meloxicam, if approved; the Company’s ability to raise future financing forcontinued product development, IV meloxicam commercialization and the payment of milestones; the Company’s ability to achieve itsfinancial goals, including financial guidance; the Company’s ability to pay its debt; regulatory developments in the United States andforeign countries; customer product performance and ordering patterns, the performance of third-party suppliers and manufacturers; andthe Company’s ability to obtain, maintain and successfully enforce adequate patent and other intellectual property protection. Theforward-looking statements in this press release should be considered together with the risks and uncertainties that may affect Recro’sbusiness and future results included in Recro’s filings with the Securities and Exchange Commission at www.sec.gov.

CONTACT:

Investor Relations Contact:Argot PartnersNatalie Wildenradt / Claudia Styslinger(212) [email protected]@argotpartners.com

Recro Pharma, Inc.Ryan D. Lake(484) [email protected]

Media Contact:Argot PartnersDavid Rosen(212) [email protected]

October 2018 Relieving pain…….Improving lives Exhibit 99.2

This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, among other things, relate to the deficiencies identified by the FDA in the complete response letter for IV meloxicam, our resubmission of an amended NDA for IV meloxicam and whether the FDA will accept and approve the amended NDA and the labeling under any such approval, if the FDA does not accept our amended NDA, the time frame otherwise associated with resolving the deficiencies identified by the FDA in the complete response letter and whether the FDA will require additional clinical studies to support the approval of IV meloxicam and the time and cost of such studies, our ability to resolve the deficiencies identified by the FDA in the complete response letter for IV meloxicam, development, launch and commercialization strategy for IV meloxicam, if approved, goals and expectations concerning IV meloxicam, future operations, prospects, plans and objectives of management. The words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases may be used to identify forward-looking statements in this presentation. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. These forward-looking statements should be considered together with the risks and uncertainties that may affect our business andfuture results included in our filings with the Securities and Exchange Commission at www.sec.gov. These forward-looking statements are based on information currently available to us, and we assume no obligation to update any forward-looking statements except as required by applicable law. Non-Promotion: This presentation is intended to be non-promotional and for investor discussion purposes only. The information provided herein contains references to IV meloxicam, an investigational product. Use of IV meloxicam has not been approved by the FDA. The safety and efficacy of the investigational use of IV meloxicam has not been determined. There is no guarantee that IV meloxicam will be approved for marketing by any regulatory agency. IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Forward Looking Statements

Company Highlights Specialty pharmaceutical company focused on hospital and related settings with late stage investigational product, IV Meloxicam, targeting management of moderate to severe pain Filed New Drug Application for IV Meloxicam in July 2017; Complete Response Letter May 2018; Type A Meeting July 2018; Meeting Minutes August 2018 NDA Resubmission made September 2018 Expanding IV Meloxicam IP Portfolio Multiple therapeutics in clinical development for hospital and related settings Revenue and cash flow positive contract development and manufacturing (CDMO) business 2018Q2YTD Revenue- $41.3M; EBITDA*- $17.5M 2017 Revenue- $71.8M; EBITDA*- $32.8M Cash position- $48.9M @ 6/30/18 $100 million credit facility secured in November 2017; $60 million drawn Experienced management team with significant development, regulatory and commercial experience *EBITDA is a non-GAAP financial measure. See reconciliation on last page of presentation. IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

Acute Care Clinical Stage Pipeline Investigational Product PC I II III Rights Meloxicam WW IV formulation Acute, post-operative pain Filed NDA/Resubmission Sept. 2018 IM formulation Acute pain Neuromuscular Blockers (NMB) (Anesthesia) WW IV Intermediate-action (RP1000) IV Ultra-short action (RP2000) NMB Reversal (Anesthesia) WW RP3000 Dexmedetomidine (“Dex”) WW, exc. Europe, Turkey, CIS Dex-IN (intranasal) Peri-procedural pain Cancer breakthrough pain IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

IV Meloxicam Overview FDA approved as an oral, preferential COX-2 inhibitor and used in a number of indications Proprietary non-opioid, long-acting IV form Incorporates Alkermes’ NanoCrystal® technology IV Meloxicam – long-acting, preferential COX-2 inhibitor for moderate to severe acute pain Clinical and safety data package complete NDA submitted to FDA, July 2017 Pre-Approval Inspections completed at two sites manufacturing IV Meloxicam CRL received May 2018, Type A Meeting held July 2018, Meeting Minutes received in August 2018 Following CRL working closely with regulatory experts to navigate path forward NDA Resubmission made September 2018 – the revised NDA included (among other items): Revised labeling addressing time to onset and duration of analgesic effect in the dosage and administration section of the product label and Additional information relating to extractable and leachable items, raised by the FDA Formulation IP (Orange Book Listable) issued through 2022 and additional methods of preparation IP issued through May 2030 Expect one of the May 2030 patents to be Orange Book listable, as a product by process patent IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. NanoCrystal® is a registered trademark of APIL

2015 2016 2017 2018/2019 IV Meloxicam Clinical Development Overview PK=pharmacokinetics; QTc=corrected QT Data on file. Recro Pharma, Inc. Phase 1 N1539-01 PK N1539-03 PK Rec-15-018 elderly with renal impairment Rec-15-019 QTc Phase 2 N1539-02 dental surgery N1539-04 hysterectomy N1539-05 laparoscopic surgery REC-15-014 bunionectomy Phase 3 REC-15-015 abdominoplasty REC-15-016 bunionectomy REC-15-017 major surgery IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Phase 3b REC-17-024 colorectal REC-17-025 total knee

Phase 3: Pivotal Efficacy Studies: Bunionectomy (n=201) Moderate to severe pain p = 0.0034 Study REC-15-016 Meloxicam IV is an investigational drug that has not been evaluated as safe or effective by FDA SPID48 (W2LOCF) SPID48=summed pain intensity difference from 0-48 hours; W2LOCF=2-hour windowed last observation carried forward IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

Phase 3: Pivotal Efficacy Studies: Abdominoplasty (n=219) Moderate to severe pain SPID24=summed pain intensity difference from 0-24 hours; W2LOCF=2-hour windowed last observation carried forward IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Study REC-15-015

Phase 3 Safety Study in Major Surgery IV Meloxicam or Placebo + Standard of Care Design 722 subjects undergoing major surgery with inpatient hospitalization for at least 24-48 hours Randomized, double-blind, placebo-controlled trial; IV meloxicam 30mg Evaluating the safety of IV Meloxicam in the setting of major surgery 31 centers Study drug administered as a bolus Once daily dosing for up to 7 doses Additional dose at time of discharge at the discretion of subject and primary investigator IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Study REC-15-017

Phase 3 Safety Study: Total Population Total Opioid Used (in morphine equivalents) * *p<0.05 Day 1

Phase 3 Safety Study: Orthopedic Surgeries Total Opioid Used (in morphine equivalents) 28.9% 25.5% *p<0.05 * * * Day 2 Day 3

Phase 3 Safety Study: Total Knee Replacement Total Opioid Used (in morphine equivalents) 41.0% 35.2% *p<0.01 * * * 58.9% 40.8% Day 1 Day 2 Day 3

Phase 3 Safety Study: >65 years & Mild Renal Impairment Total Opioid Used (in morphine equivalents) *p<0.05 Day 1 Day 2 Day 3

Integrated IV Meloxicam 30 mg Phase 3 Safety Summary n (%) of Subjects IV Meloxicam 30 mg Placebo Preferred Term N = 748 N = 393 Subjects with ≥1 AE 441 (59.0%) 253 (64.4%) Nausea 173 (23.1%) 118 (30.0%) Constipation 57 (7.6%) 24 (6.1%) Headache 41 (5.5%) 42 (10.7%) Vomiting 35 (4.7%) 33 (8.4%) Pruritus 29 (3.9%) 15 (3.8%) AE=adverse event Adverse events occurring in ≥ 3% of patients treated with IV Meloxicam 30 mg, from 3 placebo-controlled phase 3 trials IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

Next Steps for IV Meloxicam NDA resubmitted September 2018 NDA Resubmission included (among other items): Label changes to address the concerns that the FDA has expressed regarding time to onset and duration of analgesic effect Additional information with respect to extractables and leachables to address FDA concerns There can be no assurance that this approach will be acceptable to the FDA Notification of PDUFA Action Date expected to be announced approximately 30 days after filing Execute commercialization and launch plan following potential FDA approval Further expansion of IP portfolio IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

Go To Market Strategy

Opioids Dominate the IV Pain Market IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Sources: Truven Health Analytics 2014. 1. Shaffer EE, et al. Adv Ther. 2016;33:2211–2228. 73% of inpatients treated with IV analgesia received IV opioid monotherapy1

Incidence of and Risk Factors for Chronic Opioid Use Among Opioid-Naive Patients in the Post-operative Period In opioid-naive patients, many surgical procedures are associated with an increased risk of chronic opioid use in the post-operative period1 6%-10% of opioid naïve surgical patients will use opioids persistently2 Incidence of new persistent opioid use was similar between minor and major surgery, 5.9% and 6.5% respectively Incidence of new persistent opioid use in the nonoperative control group was only 0.4% IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. 1. Sun EC, et al: JAMA Intern Med. Published online July 11, 2016. 2. Brummett CM, Waljee JF, Goesling J, et al. New Persistent Opioid Use After Minor and Major Surgical Procedures in US Adults. JAMA Surg. 2017;e170504. doi:10.1001/jamasurg.2017.0504

Multiple Guidelines Recommend NSAIDs as Part of Multimodal Analgesia (MMA) IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Numerous clinical practice guidelines recommend multimodal approaches to pain management—including NSAIDs—to provide better pain control while reducing opioids and related adverse events *The American Academy of Orthopaedic Surgeons and The Joint Commission recommend MMA, but do not specifically recommend NSAIDs.

IV Meloxicam Receptivity: Anticipated Usage IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. 2. December 2017 – Blinded, Third Party Market Research, n=462. 1. January 2018 – Blinded, Third Party Market Research, n=205. In multiple market research surveys, the majority of HCPs surveyed said they would accept IV Meloxicam as a valuable addition upon approval to multimodal pain-management protocols. They estimated they would use the product in ~30% of their surgical cases1. Anticipated Change in Share in PACU Setting % of Surgeries2 Oral Opioids Fentanyl IV Opioids IV Ketorolac IV Ibuprofen IV Acetaminophen Local Injections Product X

Market Research Indicators of Success: Need To Demonstrate Clinical & Economic Value IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. CLINICAL VALUE May contribute to: Effectively treating pain and has reduced overall opioid consumption* Avoiding risks of analgesic-related AEs that lead to complications or prolong hospital stay Early patient mobilization so rehab begins within 24 hours Preventing avoidable readmissions due to surgical complications, adverse drug events or pain at the surgical site ECONOMIC VALUE May contribute to: Allowing ambulatory surgical centers to perform more complex procedures with higher reimbursements and discharge patients on the same day Allowing hospitals to speed up patient discharge, reduce inpatient admission and/or length of stay ECONOMIC CLINICAL Source: Blinded market research feedback on market dynamics. * The clinical benefit of the difference in opioid use was not evaluated. Influence Clinical Value Cost Economic Value

Target Opportunity Concentrated in ~2,000 Accounts IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. HOSPITAL INPATIENT ER HOPD ASC TOTAL ADDRESSABLE PROCEDURES 11m 6.9m 9m 2.2m ~29m CORE TARGET PROCEDURES TARGETED ACCOUNTS 3.7m 0.5m 7.2m 1.2m ~12.6m 1,475 HOSPITALS ~570 ASCs Source: Definitive, LexisNexis and Company Estimates. *Includes addressable procedures where greatest IV meloxicam use is anticipated. GI/ Colorectal General Surgery Orthopedic (Hip/Knee, Spine, other) Patient opportunity by setting of care

~100 Reps Provides 80% Coverage Of Targeted Specialties IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. Source: Definitive HC (2015-20161H) Number of Procedures (millions) Number of Hospitals 80% 1,475 Institutions + ~570 ASCS

Surgical Setting Coding & Reimbursement for Launch IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA. ASC Medicare patients Use C9399 Reimbursed at 80% of 95% of AWP Commercial patients Use J3490 Will be bundled with procedure or may be separately reimbursed based on the facility contract HOPD Medicare patients Use C9399 Reimbursed at 80% of 95% of AWP Commercial patients Use J3490 Will be bundled with procedure or may be separately reimbursed based on the facility contract Hospital Inpatient Medicare patients Use J3490 Reimbursed based on DRG Commercial patients Use J3490 Will be bundled and part of a case rate Reimbursement codes will be available from day 1 of launch.

Contract Development and Manufacturing (CDMO) Business Overview Gainesville

Gainesville CDMO Facility New dedicated development space operational October 2018, including high potency capabilities

CDMO Overview CDMO facility 97,000 + sq. ft. solid oral dosage manufacturing cGMP DEA licensed; ~190 employees Revenues include product sales, royalties and profit sharing Positive cash flow providing debt service and non-dilutive financing source for Company development and operating activities Service capabilities Formulation, process development and optimization Process scale-up Clinical supply and validation Commercial supply Ritalin LA Once daily ADHD treatment marketed by Novartis Focalin XR ADHD treatment marketed by Novartis Verapamil/Verelan CV/High blood pressure treatment marketed by Teva and Lannett Zohydro ER Extended release hydrocodone marketed by Pernix Abuse deterrent form launched

Strong CDMO Business Performance Revenues include product sales, royalties, profit sharing and R&D services 2018 Guidance- Revenues of approximately $70M, and EBITDA* of approximately $30M Additional capacity for new product opportunities Positive cash flow for debt service obligations, as well as cash flow to contribute to the funding of Company operating activities, including product development and commercialization. *EBITDA is a non-GAAP financial measure (see reconciliation on last page of presentation) CDMO Segment ($millions) 2017 (unaudited) Q22018 YTD (unaudited) Revenues $71.8 $41.3 CDMO Segment Operating Income $25.4 $13.9 EBITDA* $32.8 $17.5

$100 Million November 2017 Credit Facility Five-year, interest-only term loan at LIBOR +9.75%; Issuance of 348,664 warrants at $8.60/share Three tranches $60 million at closing $20 million upon FDA approval of IV Meloxicam subject to certain financial liquidity conditions $20 million available after Recro demonstrates early IV Meloxicam commercial traction Financial flexibility to aid our transformation into a commercial-stage enterprise Substantial reduction of our cost of capital Contributes toward funding for IV Meloxicam FDA approval $45 million milestone Interest-only structure allows for reinvestment of CDMO’s cash flows in value accretive commercial activities Repaid existing OrbiMed credit facility with payment of $31.7 million, plus transaction fees IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

Company Highlights Specialty pharmaceutical company focused on hospital and related settings with late stage investigational product, IV Meloxicam, targeting management of moderate to severe pain Filed New Drug Application for IV Meloxicam in July 2017; Complete Response Letter May 2018; Type A Meeting July 2018; Meeting Minutes August 2018 NDA Resubmission made September 2018 Expanding IV Meloxicam IP Portfolio Multiple therapeutics in clinical development for hospital and related settings Revenue and cash flow positive contract development and manufacturing (CDMO) business 2018Q2YTD Revenue- $41.3M; EBITDA*- $17.5M 2017 Revenue- $71.8M; EBITDA*- $32.8M Cash position- $48.9M @ 6/30/18 $100 million credit facility secured in November 2017; $60 million drawn Experienced management team with significant development, regulatory and commercial experience *EBITDA is a non-GAAP financial measure. See reconciliation on last page of presentation. IV Meloxicam is an investigational drug that has not been evaluated as safe or effective by FDA.

Reconciliation of Non-GAAP Financial Measures (unaudited) To supplement our financial results determined by U.S. generally accepted accounting principles ("GAAP"), we have also disclosed in the table below the following non-GAAP information for our Contract Development and Manufacturing Organization (CDMO): earnings before interest, taxes, depreciation and amortization ("EBITDA"). We believe this non-GAAP financial measure is helpful in understanding our Manufacturing Business as it is useful to investors in allowing for greater transparency of supplemental information used by management. EBITDA is used by investors, as well as management in assessing our performance. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, reported GAAP results. Further, Non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared. CDMO Business ($millions) Full Year 2017 Six Months Ended June 30, 2018 Full Year 2018 Estimate Operating Income $25.4 $13.9 $22.6 Depreciation $4.8 $2.3 $4.8 Amortization of intangible assets $2.6 $1.3 $2.6 EBITDA $32.8 $17.5 $30.0