Health and Healthcare
Why Neos Therapeutics Is Holding Out Against PDL BioPharma
Published:
Keep in mind that, excluding Monday’s move, Neos has vastly outpaced the broad markets and the health care sector with its stock up 72% year to date.
Neos came public on Monday and said that its board had unanimously rejected the October 26 unsolicited proposal from PDL BioPharma to acquire all the outstanding shares of Neos for $10.25 per share in cash.
The company noted that PDL’s October proposal is identical in all material respects to proposals received in June, July and September from PDL, which were also reviewed and unanimously rejected by the Neos board.
Even further, the board affirmed its previous determinations that PDL’s proposal undervalues Neos and does not reflect Neos’s strategic value and future prospects for continued growth and value creation.
Vipin K. Garg, Ph.D., president and CEO of Neos, commented:
We are successfully executing the Company’s strategy and believe we are well positioned to deliver enhanced value to Neos shareholders in both the near- and long-term. PDL’s proposal is opportunistic and its interest underscores Neos’ growth and value creation prospects as an independent company. We believe many of Neos’ largest shareholders support this view. While the Board is confident in Neos’ strategic direction, we are committed to serving the best interest of all Neos shareholders and remain open to considering all options to deliver on the Board and management’s value creation objectives.
Shares of Neos were last seen up about 5.5% at $10.60, with a consensus analyst price target of $17.33 and a 52-week trading range of $4.85 to $10.90.
PDL shares were trading down about 2% to $2.98. The 52-week range is $1.93 to $3.77, and the consensus price target is $3.50.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.