Neos Therapeutics Inc. (NASDAQ: NEOS) stock showed a rise of 1.72% in the last trading close, while NEOS stock price rises by 10.17% during pre-market. The rise in NEOS stock is might be due to the news of a merger between Neo Therapeutics and Aytu Biosciences that has been circulating. Neos Therapeutics is a pharmaceutical company that deals with the development and manufacturing of central nervous system (CNS)-focused products. On the other hand, Aytu Biosciences is also a pharmaceutical company but focuses on the commercialization of novel products that cater to the unmet needs of patients. Currently, AYTU is marketing the prescription products that address large primary care and pediatric markets.
The important meetings of stockholders of both companies related to the merger was set happen on 18 March that was yesterday. The results of that meeting have not yet been released but there are high chances of it to be the reason behind the rise in NEOS stock.
In that meeting, stockholders of both NEOS and AYTU were eligible to receive notice of vote in their respective company’s meeting. It was already announced that if the stockholders approve this merger and it also get the waiver of the other conditions then at the closing of this merger both Neos and Aytu will be together renamed as Aytu Biopharma Inc. and on Nasdaq Capital market its common stock will be traded under the symbol of AYTU.
At the successful closing of NEOS and AYTU merger, the stockholders of Neos will get 0.1088 Aytu shares that will value the all-stock transaction at approximately $44.9 million. Upon recently checked values, the NEOS shares were trading 63.8% higher at $1.9 in pre-market on Thursday whereas for AYTU share, they were trading at 23.1% higher rate at $11.89.
Response of other companies
The two very reputable firms the one is ‘Glass, Lewis & Co” and the other is “Institutional Shareholder Services Inc.” recommended the NEOS stockholders to vote “FOR” the merger. Both these companies are independent proxy advisory firms.