(Reuters) – Vanda Pharmaceuticals said on Wednesday that it has rejected takeover offers from UK-based Cycle Pharmaceutical and a revised bid from contract manufacturer Future Pak, adding that both offers undervalue the U.S. drugmaker.
This is the third time Vanda has rejected a buyout offer from Future Pak. After its first offer from Future Pak in April, Vanda adopted a shareholder rights plan, known as a “poison pill”, to reduce the chances of a hostile takeover.
The plan is adopted to prevent any entity from acquiring a stake of more than 10% without the board’s approval.
Last week, Future Pak raised the cash portion of its buyout offer as part of a final attempt to acquire Vanda. It raised the portion to $8.50-$9.00 per share alongside previously proposed contingent value rights amounting to about $4.27 per share.
Cycle Pharma’s buyout offer from earlier this month for $8 per share in cash would value Vanda at $466 million.
Vanda’s board on Wednesday rejected both the offers, stating that, “both substantially undervalue Vanda and are not in the best interests of the Company and its shareholders”.
(Reporting by Gursimran Kaur in Bengaluru; Editing by Rashmi Aich)
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