Neos Therapeutics Gears Up for Secondary Offering

Health and Healthcare

Published: February 1, 2016 12:05 pm

Last Updated: January 13, 2020 1:49 pm

Neos Therapeutics Inc. (NASDAQ: NEOS) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its secondary offering. No pricing details were given in the filing, but the most recent closing price was $13.58 and the offering is valued up to $69 million. The offering is underwritten by UBS Investment Bank, BMO Capital Markets, RBC Capital Markets and JMP Securities.

This pharmaceutical company is focused on developing, manufacturing and commercializing products utilizing its proprietary modified-release drug delivery technology platform, which it already has used to develop one product and two product candidates for the treatment of attention deficit hyperactivity disorder (ADHD).

These product and product candidates are extended-release (XR), medications in patient-friendly, orally disintegrating tablets (ODT) or liquid suspension dosage forms. The company received approval from the U.S. Food and Drug Administration (FDA), for Adzenys XR-ODT, Neos’ amphetamine XR-ODT, on January 27, 2016.

Neos expects to resubmit a new drug application (NDA), for Cotempla XR-ODT, the methylphenidate XR-ODT product candidate, in the fourth quarter of 2016, following the completion of a bioequivalence bridging study. In addition, the company plans to submit an NDA for NT-0201, the amphetamine XR liquid suspension product candidate, in the fourth quarter of 2016.

According to Neos in the filing:

We believe our product and, if approved, our product candidates will address an unmet need by providing more patient- and caregiver-friendly dosing options not previously available to patients in the $10.7 billion market for ADHD-indicated medications.

The company expects to use the net proceeds from this offering to further develop and commercialize its pipeline. The remainder will be put toward working capital and general corporate purposes.

Shares of Neos were trading down almost 20% at $10.89, with a consensus analyst price target of $31.33 and a 52-week trading range of $8.91 to $28.99.

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