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Cycle Pharmaceuticals reaffirms proposal to acquire Vanda Pharmaceuticals

Cycle Pharmaceuticals reaffirms proposal to acquire Vanda Pharmaceuticals

In This Article: https://www.tipranks.com/news/the-fly/cycle-pharmaceuticals-reaffirms-proposal-to-acquire-vanda-pharmaceuticals Cycle Pharmaceuticals reaffirmed its proposal to acquire all of the issued and outstanding shares of Vanda Pharmaceuticals for an all-cash consideration…

Wednesday, Oct 16

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https://www.tipranks.com/news/the-fly/cycle-pharmaceuticals-reaffirms-proposal-to-acquire-vanda-pharmaceuticals Cycle Pharmaceuticals reaffirmed its proposal to acquire all of the issued and outstanding shares of Vanda Pharmaceuticals for an all-cash consideration of $8.00 per Vanda share. Cycle said it is making its renewed proposal public for the benefit of Vanda shareholders in light of the Vanda board’s continued refusal to engage following the receipt of multiple premium proposals, Vanda’s recent failure to receive FDA approval for tradipitant, following a failed Phase 3 trial that missed its primary endpoint, and the Vanda board’s recent entrenchment efforts that disenfranchise its shareholders. Cycle’s proposal represents a 80% premium to Vanda’s share price at the close of business on October 11, compared to a 58% premium to Vanda share on June 5, the day prior to the public disclosure of Cycle’s initial offer. Cycle’s proposal represents a fully diluted equity value of $488M. On September 23, Cycle delivered a letter to the board of directors of Vanda reiterating its interest in pursuing a transaction. On September 30, Vanda responded that the Vanda board was reviewing the proposal, noting that they needed an additional two weeks to evaluate the proposal and respond. On October 3, 2024, despite the active proposal from Cycle, Vanda’s Board amended and restated its bylaws, which included further entrenching modifications related to both annual and special stockholder meetings and the nomination of directors, as well as the Vanda Board’s ability to postpone, reschedule or cancel any such meetings and restrict stockholder business or director nominees […]

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