Vanda Pharma Rejects Future Pak's Takeover Proposals; Stock Climbs

(RTTNews) - Shares of Vanda Pharmaceuticals Inc. (VNDA) were gaining more than 36 percent in pre-market activity on the Nasdaq on Wednesday after the company confirmed that it received several unsolicited takeover proposals from Future Pak, LLC since March 2024.

The most recent proposal from April 1 offered $7.25 - $7.75 per share, subject to certain terms and conditions. However, Vanda Board of Directors reviewed and rejected all the conditional proposals, saying that they significantly undervalue the company.

In reaching its conclusions, the Board considered Vanda's robust clinical development pipeline, expanding commercial presence, significant cash balance and long-term future growth prospects, among other things.

According to the Board, the conditional proposals are opportunistic attempts to purchase the company's shares at a discount to Vanda's intrinsic value. It would transfer significant value to Future Pak at the expense of Vanda shareholders, including approximately $6.751 per share in cash and marketable securities.

Future Pak's latest unsolicited proposal provides a mere 7 - 15 percent premium to such cash balance, it said.

Future Pak, a privately-held contract maker and packager of pharmaceutical and nutraceutical products, confirmed its proposal to acquire Vanda, and noted that its proposal implies a premium of 79 percent to 91.4 percent to Vanda's closing price of $4.05 as of April 16.

Vanda urged its shareholders not to take any action at this time.

In pre-market activity on the Nasdaq, Vanda shares are currently trading at $5.41, up 33.58 percent.