11:08 AM EDT, 04/17/2024 (MT Newswires) -- Vanda Pharmaceuticals ( VNDA ) said Wednesday its board has adopted a rights plan to protect stockholder interests and maximize value for them.

The stockholder rights plan is effective immediately and set to expire April 16, 2025.

The company said the move is in response to a recent unsolicited acquisition proposal made by Future Pak. Vanda said its board determined that the proposal was not in the best interests of the company and its stockholders.

The proposal "significantly undervalues the company in light of its robust clinical development pipeline, expanding commercial presence, significant cash balance and long-term future growth prospects," it said.

Vanda said the rights will become exercisable if any person, entity or group acquires beneficial ownership of 10% or more of its stock in a transaction not approved by its board.

The company's shares were up about 38% in recent trading.