Neos Therapeutics, a Dallas-area maker of extended-release formulations for ADHD that disintegrate in the mouth, announced that it aims to raise $60 million on the Nasdaq in an IPO planned for next week. The company expects to sell 4 million shares at $14 to $16 a pop.
Last month, the company filed with the SEC to raise up to $69 million via IPO.
Neos has filed two New Drug Applications with the FDA for orally disintegrating tablets, one containing the generic drug methylphenidate (used in Ritalin and other meds), and the other a generic stimulant known as amphetamine, which is marketed as Adderall.
Neos filed an NDA for the methylphenidate-based candidate (dubbed Cotempla XR-ODT) in January, and for its amphetamine-based candidate in 2013. The company told Xconomy that the amphetamine-based candidate is bioequivalent to Shire's ($SHPG) Adderall XR. A third candidate in clinical development is an extended-release version of amphetamine, but in a liquid formulation.
Like Adderall XR (or extended release), the company's amphetamine-based orally disintegrating tablet is taken once daily. One advantage of both candidates is that they disintegrate in the mouth without swallowing due to the company's unique delivery platform. Neos says that many pediatric and even adult patients have difficulty swallowing, which sometimes results in noncompliance or discontinuation of current medications.
Neos' delivery platform consists of a drug-loaded resin microparticle wrapped within a polymer coating. The company uses an ion-exchange process to create new salt forms of existing drugs, according to its website.
As part of a legal settlement with Shire agreed to last year, Neos will pay the established rare-disease specialist royalty on sales of its amphetamine orally disintegrating tablet until the expiration of certain patents.
In February, the company completed a $20.6 million funding round with participation from Presidio Partners, Crabtree Partners, CAC, Delaware Street Capital, Burrill Life Sciences Capital Fund III and Essex Capital, among others.
Since 2012, Neos has been manufacturing a generic extended-release medication that uses its drug delivery platform to treat symptoms of allergy and cold. The company had sales of $1 million last fiscal year, according to Renaissance Capital.