Cycle Pharmaceuticals Maintains Acquisition Offer for Vanda – Despite Regulatory Challenges

Cycle Pharmaceuticals, based in the United Kingdom, reaffirmed its acquisition offer for Vanda Pharmaceuticals on Monday. The offer amounts to $488 million, despite the U.S. pharmaceutical company recently facing a regulatory setback for its gastrointestinal medication. In June, Vanda rejected offers from Cycle Pharma as well as a revised proposal from contract manufacturer Future Pak. Despite these rejections, Cycle remains committed to its offer of $8 per share, representing an 80% premium over the last traded stock price. The offer comes at a time when Vanda's shares have fallen by 4.5% following the U.S. Food and Drug Administration's (FDA) decision not to approve the aforementioned medication. In April, Vanda implemented a so-called "poison pill" strategy for shareholder defense to complicate hostile takeovers. The company has three approved products: the sleep aid Hetlioz, Fanapt for the treatment of bipolar disorder I, and Ponvory for the treatment of multiple sclerosis. Cycle Pharma emphasized in a statement that it is ready to promptly collaborate with Vanda's management to reach an agreement that offers a compelling premium and immediate monetary value for all Vanda shareholders. Vanda itself has not yet commented in response to a Reuters inquiry. Currently, Vanda's stock is up by 12.3% to $4.99.