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.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
