After a revised takeover bid, Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) is currently witnessing a surge in its share price on the market. As of the last check during the current session, VNDA shares have escalated by 16.63% to reach $5.64.
Vanda Pharmaceuticals (VNDA) has officially acknowledged receipt of an altered unsolicited proposition from Future Pak, LLC, aimed at acquiring the Company. The revised offer comprises a cash offer ranging from $7.25 to $7.75 per share, along with certain Contingent Value Rights ("CVRs").
This updated proposition comes subsequent to Vanda's evaluation and dismissal of a prior unsolicited bid from Future Pak, which proposed acquiring the Company within the same price range of $7.25 to $7.75 per share.
In adherence to its fiduciary obligations, and in collaboration with its autonomous financial and legal advisors, Vanda's Board of Directors will meticulously scrutinize and assess the revised unsolicited proposition.
Earlier today, Future Pak announced to revise its offer for all outstanding common stock shares of Vanda, potentially increasing the value by approximately $4.37 per share compared to the preceding proposal unveiled on April 17, 2024.
This augmented offer, contingent on the full activation of the CVRs, represents a premium of 140% to 150% over Vanda's closing share price of $4.84 on May 6, 2024, and a premium of 187% to 199% over the Company's unaffected share price of $4.05 on April 16, 2024, the day preceding Future Pak's initial public announcement regarding its intentions to acquire Vanda.
Future Pak escalated its consideration in a bid to facilitate progress for Vanda, proposing a potential framework for CVRs that could substantially elevate the total consideration. The company has endeavored to adopt a constructive approach by offering additional value contingent upon favorable performance in the commercial sector, alongside substantial value stemming from the monetization of the pipeline.
The revised offer now includes value associated with Fanapt and Tradipitant, with these supplementary components furnishing substantial benefits for Vanda shareholders through enhanced participation and establishing a solid foundation for constructive dialogue with Future Pak.