Board Determines Offers Undervalue Company’s Robust Growth Prospects
Vanda Pharmaceuticals (VNDA) has confirmed receiving multiple unsolicited acquisition proposals from Future Pak, LLC (“Future Pak”) since March 2024. The most recent proposal, dated April 1, offered $7.25 – $7.75 per share, subject to certain conditions.
After careful review by the Vanda Board of Directors (the “Board”), along with independent financial and legal advisors, the Board unanimously concluded that the offers are not in the best interests of the Company and its shareholders. The Board believes the proposals significantly undervalue Vanda, considering its robust clinical development pipeline, expanding commercial presence, significant cash balance, and long-term growth prospects.
Despite Future Pak’s attempts, the Board maintains confidence in Vanda’s resilient business model, diverse product portfolio, history of top-line growth, and durable cash flow. The Conditional Proposals are deemed opportunistic and would transfer significant value from shareholders to Future Pak at the expense of Vanda’s intrinsic value.
With Future Pak’s latest proposal offering only a modest premium to Vanda’s cash balance, shareholders are advised to take no action at this time.
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