Neos is getting an enormous boost, even if it didn't ask for it.
Shares of pharmaceutical company Neos Therapeutics Inc. (NEOS) - Get Report surged over 38% in mid-morning trading Thursday, Oct. 26, after the company confirmed it received an unsolicited buyout proposal from PDL BioPharma Inc. (PDLI) - Get Report .
According to Neos, PDL aims to purchase all outstanding Neos shares for $10.25 each in an all-cash deal. That would value the deal at about $287.8 million.
PDL attempted to strike the same deal with Neos in June, but the Neos board of directors unanimously rejected the offer. Following that, PDL tried again in July with the same $10.25 per-share offer. At that time, Neos and PDL entered into a confidentiality agreement under which PDL affirmed to Neos that it "saw even greater value in the company as a result of the information shared." Despite that affirmation, PDL continued with its $10.25 per-share offer.
Again in July, the Neos board unanimously declined the offer, deciding PDL's deal "substantially undervalued" Neos. Neos said its board will review this proposal again to determine its best course of action.
Texas-based Neos focuses its production, development and manufacturing efforts on extended release drugs. PDL operates in the acquisition and management side of biopharma, maintaining a portfolio of companies, products, royalty agreements and debt facilities in the sector.
PDL stock was lower 5.47% to $3.03 in mid-morning trading Thursday.
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