Is The Turnaround At Neos Therapeutics All Done?

NEOS is a junior biotech that is recuperating from a near-debt, er, near-death experience, from too much debt.

They market 3 generic products aimed at ADHD that have novel delivery systems–that’s their competitive edge. Now sales are increasing, cash burn is decreasing, they got funding and…is it time to buy this company ?


Trading Symbols:                                         NEOS
Share Price Today:                                      $1.50
Shares Outstanding:                                   50 million
Market Capitalization:                                 $75 million
Net Debt:                                                    $20 million
Enterprise Value:                                        $95 million
2019 Consensus Revenue Estimate:         $67 million
EV/Sales                                                    1.4x
2020 Consensus Revenue Estimate:         $86 million
EV/Sales                                                    1.1x


Neos Therapeutics (NEOS – NASDAQ) is focused on drug delivery – they are like another stock I highlighted in an earlier blog – Opiant Pharmaceuticals (OPNT – NASDAQ). 

Like Opiant, Neos takes already approved drugs and repackages them with a better delivery system that makes patients more likely to take their meds.

The indication that Neos is tackling is attention deficit disorder (ADHD).

Their products are known treatments: amphetamines and methylphenidate. 

What Neos does that is novel is put these active ingredients into easier to administer forms: extended release (XR) medication, orally disintegrating tablets (ODT) and liquid suspension (OR) dosing.

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This article was written by Keith Schaefer, Editor/Publisher. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this ...

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