Vanda Pharmaceuticals rejects Future Pak’s acquisition offer


Vanda Pharmaceuticals Inc. (Nasdaq: VNDA) has officially declined the latest acquisition proposal from Future Pak, LLC (FP), citing substantial undervaluation and significant risk. The offer, ranging from $7.25 to $7.75 per share in cash, coupled with certain Contingent Value Rights (CVRs), was unanimously rejected by Vanda’s Board of Directors after thorough consultations with independent financial and legal advisors.

Board Evaluates Unsolicited Proposal

The decision followed a comprehensive review of Vanda’s current operations, including its promising clinical development pipeline, growing commercial presence, and strong financial standing. The Board highlighted the speculative nature of the CVRs, emphasizing the risks associated with achieving the commercial milestones proposed by FP’s management. According to the Board, this unsolicited bid is viewed as another opportunistic attempt to capture the company’s shares at a price below Vanda’s true market value.

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Vanda’s Position and Future Prospects

Under the leadership of CEO Mihael Polymeropoulos, MD, Vanda continues to focus on the development and commercialization of innovative therapies aimed at addressing significant unmet medical needs. With a history dating back to its 2003 founding by Polymeropoulos in partnership with Care Capital LLC and Bio*One Capital, Vanda is at the forefront of integrating new technologies such as genetics and genomics into drug discovery and patient care.

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Recent Advances in Vanda’s Pipeline

Further underscoring its robust pipeline, Vanda recently announced positive results from its second Phase III study of tradipitant in motion sickness, conducted under real-world conditions on boats along the U.S. coastal waters. These results confirmed the efficacy of tradipitant in preventing motion sickness-related vomiting, showcasing Vanda’s capability to bring new, effective treatments to market.

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Shareholder Recommendations

As of now, Vanda’s Board advises shareholders to take no action, reaffirming their confidence in the company’s strategic plan to drive significant long-term growth and create substantial value, far surpassing the terms offered by FP.

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