Deerfield Management Discloses Stake In Recently Public Neos Therapeutics Inc (NEOS)

A huge gamble

The financial reports submitted by Neos Therapeutics Inc (NASDAQ:NEOS) for the years 2013 and 2014 shows losses of $19 and $20.8 million respectively. In 2014,  revenues fell to $758,000 from the $1.04 million reported in the previous year. According to its balance sheet as of March 31, 2015, the company has $26.1 million cash holdings and total assets of $54.6 million. It is also important to note that the company faces a huge downside risk since its ADHD medication has not yet been approved by the Food and Drug Administration (FDA). In its S-1 filing with the SEC, Neos Therapeutics reports:

If the FDA does not conclude that our product candidates satisfy the requirements for the 505(b)(2) regulatory approval pathway, or if the requirements for approval of any of our product candidates under Section 505(b)(2) are not as we expect, the approval pathway for our product candidates will likely take significantly longer, cost significantly more and encounter significantly greater complications and risks than anticipated, and in any case may not be successful.

Disclosure: none.