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Aytu BioScience and Neos Therapeutics Announce Definitive Merger Agreement, Creating a Combined $100M Revenue(1) Specialty Pharmaceutical Company
Merger accelerates transformation to profitability, with estimated annualized cost synergies of $15M beginning FY 2022Aytu adds Neos' established, multi-brand
About this update from Aytu Biopharma, Inc.
[{"type":"text","content":"Merger accelerates transformation to profitability, with estimated annualized cost synergies of $15M beginning FY 2022Aytu adds Neos' established, multi-brand ADHD portfolio, enhancing Aytu's footprint in pediatrics and expanding its presence in adjacent specialty care segments Opportunity to leverage and further enhance Neos RxConnect, a best-in-class patient support program, for Aytu's product portfolio of best-in-class prescription therapeutics and consumer health products Companies to host joint conference call today at 8:30 am ET ENGLEWOOD, CO and GRAND PRAIRIE, TX / ACCESSWIRE / December 10, 2020 / Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company focused on commercializing novel products that address significant patient needs, and Neos Therapeutics, Inc. (NASDAQ:NEOS), a commercial-stage pharmaceutical company developing and manufacturing central nervous system-focused products, today announced that they have entered into a definitive merger agreement pursuant to which Neos will merge with a wholly owned subsidiary of Aytu in an all-stock transaction.Transaction DetailsUpon the effectiveness of the merger (the \"Merger\"), Neos stockholders will be entitled to receive 0.1088 shares of common stock of Aytu for each share of Neos common stock held, after taking into account the one-for-ten reverse split of Aytu's common stock that was effected on December 8, 2020. The transaction will result in Neos stockholders owning approximately 30% of the fully diluted common shares of Aytu. The all-stock transaction is valued, on a fully diluted basis, at approximately $44.9 million based on the 10-day volume weighted average price of Aytu stock for the period ended December 9, 2020.The boards of directors of both companies have approved the transaction.Strategic Rationale and Financial Benefits of the TransactionThe combined entity will have an increased footprint in the prescription pediatric market, an established, growing multi-brand ADHD portfolio addressing the $8.5 billion ADHD market and significant combined revenue scale. For the 12-month period ending September 30, 2020, Neos generated $57.0 million in revenues. On a combined pro-forma basis for this same period, Aytu and Neos' aggregate net revenue is over $100 million. In addition, this Merger facilitates operational and commercial synergies that can ...