Why Neos Therapeutics Shares Are Hitting a New Low

By Chris Lange Updated Jan 12, 3:11PM EST · Published Feb 3, 1:50PM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Why Neos Therapeutics Shares Are Hitting a New Low — © Thinkstock

[cnxvideo id=”625484″ placement=”ros”]Neos Therapeutics Inc. (NASDAQ: NEOS) saw its shares sink to a new 52-week low after the company announced that it had priced its secondary offering of common stock. Neos priced its 5.0 million shares at $5 each, with an overallotment option for an additional 750,000 shares. At this price, the entire offering is valued up to $28.75 million. The offering is expected to close on February 8.

Cowen and BMO Capital Markets are acting as joint-book running managers, and JMP Securities is acting as a lead manager for the offering.

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 its approved product Adzenys XR-ODT and two product candidates for the treatment of attention deficit hyperactivity disorder (ADHD).

[nativounit]

The approved product and two product candidates are extended-release (XR) medications in patient-friendly, orally disintegrating tablets (ODT), or oral suspension dosage forms.

Neos received approval from the U.S. Food and Drug Administration (FDA), for Adzenys XR-ODT, its amphetamine XR-ODT, on January 27, 2016, and began the commercialization of this product on May 16, 2016.

In July 2016, the firm announced that it had completed the bridging study demonstrating that the Cotempla XR-ODT to-be-marketed product was bioequivalent to the clinical trial material, and in December 2016, Neos announced the resubmission of its NDA for Cotempla XR-ODT. Additionally, in November 2016, it announced the submission of an NDA for NT-0201, an amphetamine XR oral suspension.

The company intends to use the proceeds from this offering to further develop its pipeline and fund its studies, as well as paying down its debt. The remainder will be used for working capital and general corporate purposes.

Shares of Neos were last seen down 14% at $4.97 on Friday, with a consensus analyst price target of $21.00 and a 52-week trading range of $4.90 to $11.75.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.