Neos Therapeutics to consider other offers after PDL snub -sources
(Corrects last paragraph to late afternoon trading on Tuesday, from Monday)
By Carl O'Donnell
Oct 31 (Reuters) - U.S. drugmaker Neos Therapeutics Inc , which this week rejected a fourth takeover offer by PDL Biopharma Inc, will consider offers from other potential buyers, according to people familiar with the matter.
Neos, a developer of attention deficit disorder treatments, rejected, as inadequate, a nearly $300 million all-cash bid from PDL that was more than a 40 percent premium to its market value.
Neos will work with investment bank Jefferies LLC to explore its options and discuss a deal with other potential acquirers, the sources said. PDL could clinch a deal if it were to offer a higher price, the sources added, cautioning that there was no certainty of any transaction.
The sources asked not to be identified because the deliberations are confidential. Neos and PDL each declined to comment.
PDL BioPharma, based in Incline Village, Nevada, owns a portfolio of companies, products, royalty agreements and debt facilities across the biotech, pharmaceutical and medical devices sectors.
Neos currently markets two attention deficit disorder treatments, Adzenys XR-ODT and Cotempla XR-ODT. The latter was launched in September and is still ramping up sales.
It has another compound, also for ADHD, that is in the late stages of clinical research and is expected to launch in the U.S. early next year, assuming regulatory approval.
The compounds come in so-called alternative dosage forms, such as disintegrating tablets and liquids, that target a relatively small patient population that does not react well to mainstream dosages.
Cowen and Co estimates that Neos will eventually gain a roughly 30 percent share of the alternative dosage market for ADHD medicines, garnering sales of around $300 million per year.
Jason Butler, an equity researcher at JP Morgan, has argued that Neos' fair value is around $30 per share. In late afternoon trading on the Nasdaq on Tuesday, Neos shares were down 6.3 percent at $9.60. Over the past year, the shares traded between $10.90 and $4.85. (Reporting by Carl O'Donnell in New York; Editing by Steve Orlofsky)
