Vanda Pharma Adopts Limited Duration Stockholder Rights Plan; Stock Up

(RTTNews) - Vanda Pharmaceuticals Inc. (VNDA), Wednesday announced its decision to adopt a limited duration stockholder rights plan, effective immediately, in response to Future Pak's unsolicited takeover proposal made on April 1.

The Rights Plan, expiring on April 16, 2025, intends to protect the rights of all current and future stockholders by blocking any entity, person or group from acquiring Vanda without paying an appropriate control premium to stockholders, or giving an opportunity to the Board to make an informed judgement.

Earlier, Vanda had declined Future Pak's offer to takeover the company for $7.25 - $7.75 per share, saying that it significantly undervalued the company in light of its robust clinical development pipeline, expanding commercial presence, significant cash balance and long-term future growth prospects.

Currently, Vanda's stock is rising 36.30 percent, to $5.49 on the Nasdaq.