Neos Therapeutics, Inc. (NEOS) is a commercial-stage pharma company that uses a unique delivery mechanism to deliver treatments in the ADHD space. The company has 3 approved products:
- Adzenys XR-ODT® (amphetamine), an extended-release orally disintegrating tablet.
- Cotempla XR-ODT® (methylphenidate), also an extended-release orally disintegrating tablet.
- Adzenys-ER®(amphetamine), an extended-release oral suspension.
With losses mounting and substantial debt repayments ahead of it, NEOS made a strategic decision to shift to more profitable business channels and market segmentation so that it could essentially ditch those channels that weren't making enough for them and double down with sales efforts on the ones that were profitable. The end result in Q2 2019 was prescriptions growth that was near flatline but total revenues increasing 38% due to a higher revenue per pack or, as it were, average selling price for a 30-day supply.
Average net price per pack (30-day supply) of Adzenys XR-ODT was $117 for the three months ended June 30, 2019, as compared to $95 for the same period in 2018. For Cotempla XR-ODT, the average net price per pack (30-day supply) was $127 for the three months ended June 30, 2019, as compared to $89 for the same period in 2018.
In the latest quarter, sales and marketing expense dropped 37% compared to the prior year's 2nd quarter. The net result was a decline in operating loss from $13.3 million to $2.4 million year on year.
Adzenys XR-ODT
Adzenys XR-ODT was launched in mid 2016 and it is an amphetamine that targets patients, children and adults, above the age of 6. This drug has exclusivity until 2025. Actavis Labs filed with the FDA for a generic version of this drug and NEOS entered into an agreement where Actavis is granted the right to manufacture and sell its generic version in 2025. This particular drug generated $7.2 million in
