On Wednesday, Vanda Pharmaceuticals Inc. ( VNDA ) confirmed that, since March 2024, it had received several unsolicited proposals from Future Pak LLC to acquire all of Vanda’s outstanding shares. 

The most recent proposal offered $7.25 – $7.75 per share, subject to certain terms and conditions.

The current proposal implies a premium of 79.0% to 91.4% to Vanda’s closing price of $4.05 as of April 16, 2024.

The Vanda Board of Directors concluded that the offers were not in the company’s and its shareholders’ best interests, as it significantly undervalued the company.

Vanda said it had established a resilient business with a diverse product set, a history of top-line growth, and durable cash flow.

The Board believes the Conditional Proposals are opportunistic attempts to purchase the company’s shares at a discount to Vanda’s intrinsic value and would transfer significant value to Future Pak at the expense of Vanda shareholders, including approximately $6.751 per share in cash and marketable securities. 

Earlier this month, the FDA approved Vanda’s Fanapt (iloperidone) tablets for the acute treatment of manic or mixed episodes associated with bipolar I disorder in adults, sending shares 30% higher.

The company says Future Pak’s latest unsolicited proposal provides a mere 7–15% premium to such cash balance, ascribing very little value to the company’s significant revenue stream and pipeline.

Future Pak is a privately held contract manufacturer and packager of pharmaceutical and nutraceutical products. 

In its letters to Vanda, Future Pak has also expressed a willingness to explore various ways to improve its proposal that could provide Vanda shareholders additional upside beyond the stated cash consideration. 

Future Pak would not require a financing contingency in connection with a transaction and has the full support of its strategic financial partner, Colbeck Capital Management.

Read Next: Vanda Pharmaceuticals Acquires Rights To Multiple Sclerosis Drug From Johnson & Johnson’s Company.

Price Action: VNDA shares are up 33.8% at $5.41 on the last check Wednesday.