Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) has seen a remarkable surge in its stock price, catapulting by 34.86% to $5.46 per share at last check during the current session. This surge follows the rejection of a takeover bid, propelling VNDA shares on an upward trajectory.
In a statement released by Vanda Pharmaceuticals (VNDA), it has been disclosed that Future Pak, LLC has been keen on acquiring all Vanda shares since March 2024, having submitted numerous unsolicited proposals. The latest offer, dated April 1, presented a price range of $7.25 to $7.75 per share.
Following a meticulous review conducted in adherence to its fiduciary duties, Vanda’s Board of Directors, alongside its independent financial and legal advisors, has unanimously concluded that these Conditional Proposals are not aligned with the best interests of Vanda Pharmaceuticals and its shareholders.
The Board perceives these Conditional Proposals as opportunistic attempts to procure the company’s shares at a markdown to Vanda Pharmaceuticals’ intrinsic value, potentially leading to a significant value transfer to Future Pak, to the detriment of VNDA shareholders.
This includes an estimated $6.751 per share in cash and marketable securities. The latest proposal from Future Pak offers a premium of only 7% to 15% over this cash balance, assigning minimal value to Vanda Pharmaceuticals’ substantial revenue stream and pipeline.
Subsequently, in a separate announcement, Vanda Pharmaceuticals has implemented a temporary stockholder rights plan to safeguard the interests of shareholders and optimize value for all stockholders. The Rights Plan has taken effect immediately. The Rights Plan is designed to empower shareholders to realize the full value of their investment in Vanda Pharmaceuticals.
The Rights Plan will also decrease the likelihood of any entity, individual, or group gaining control of the company through open-market accumulation without offering all shareholders an appropriate control premium or affording the Board adequate opportunity to make informed decisions and take actions that align with the best interests of all shareholders.
