M&A

Neos considering offers after rejecting PDL’s $300M bid: Reuters

Neos Therapeutics $NEOS may be asking for a bidding war after rejecting a takeover offer from PDL BioPharma that came in last week. A source familiar with the matter told Reuters Tuesday Neos will consider offers from other potential buyers.

It’s the fourth time Neos has jilted PDL. Neos, a maker of attention deficit disorder treatments based out of Texas, received identical offers from PDL in June, July and September of this year. Each one offered to buy Neos for $300 million.

Neos sells two ADD drugs, Adzenys XR-ODT and Cotempla XR-ODT, in addition to its ADHD compound that’s in late-stage clinical trials.

The rejection makes sense, considering analysts at Cowen and Co estimate that Neos will eventually garner sales of around $300 million per year in the ADHD market alone.

PDL’s offer amounts to a purchase price of $10.25 per share. Analysts at JP Morgan estimate Neos’ fair value is closer to $30 per share.

“After a comprehensive review, conducted in consultation with its financial and legal advisors, the Neos board affirmed its previous determinations that PDL’s proposal undervalues Neos, does not reflect Neos’ strategic value and future prospects for continued growth and value creation, and is not in the best interests of the company or Neos shareholders,” Neos said in a statement.

Neos’ stock jumped about 38 percent on the news of the buyout offer, climbing from $7.30 per share to $10.05 by market close Thursday. Since rejecting the bid, the stock has remained high. The stock closed at $10.40 per share at today’s market close.


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