Illustration photo shows various medicine pills in their original packaging in Brussels, Belgium August 9, 2019. REUTERS/Yves Herman/Illustration/File Photo Purchase Licensing Rights, opens new tab Oct 14 (Reuters) – UK-based Cycle Pharmaceuticals on Monday reaffirmed its offer to buy Vanda Pharmaceuticals (VNDA.O), opens new tab in a deal that values the US drugmaker at $488 million, despite a regulatory setback for its stomach condition drug in September.
Vanda in June rejected takeover offers from Cycle Pharma and a revised bid from contract manufacturer Future Pak. WHY IT’S IMPORTANT
Cycle has proposed to acquire Vanda for $8 per share, an 80% premium to Vanda’s last closing price. The potential offer follows a 4.5% decline in Vanda’s shares after the U.S Food and Drug Administration declined to approve its drug for a stomach condition that disrupts digestion. CONTEXT
Vanda in April adopted a shareholder rights plan, known as a "poison pill", to reduce the likelihood of a hostile takeover.
Vanda has three approved products, sleep disorder treatment Hetlioz, Fanapt for bipolar I disorder and Ponvory to treat multiple sclerosis. KEY QUOTE
"We stand ready to work immediately with Vanda’s board and management team to reach an agreement that would provide a compelling premium and certain cash value today for all Vanda shareholders," Cycle Pharma said in a statement.
Vanda did not immediately respond to a Reuters request for comment. MARKET REACTION
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