Insys Therapeutics, a Phoenix-based drug development company focused on pain and oncology, will swallow Chicago-area biopharmaceutical developer NeoPharm Inc. (OTC:NEOL.PK) through a reverse merger worth an initial $135 million in stock.

The submission of the new drug application is “a major milestone” for NeoPharm, which posted operating losses of a combined $90 million in the three most recent years for which financial data was made public.