D.C.-based Vanda Pharmaceuticals has shut down a bidding war for the company, saying both offers are bids to buy the company for significantly less than it is worth.
Vanda has two commercial drugs approved for treating schizophrenia, bipolar disorder and sleeping disorders, and is developing novel treatments for jet lag, sea sickness and stage fright.
Earlier this month, U.K. drugmaker Cycle Pharmaceuticals made an unsolicited offer of $466 million for all of Vanda’s outstanding shares. That was followed days later by a sweetened acquisition offer from Michigan-based Future Pak for $524 million.
Vanda Pharmaceuticals said its board has reviewed both offers and rejected them.
“The proposals are opportunistic attempts to purchase the company’s shares at a discount to Vanda’s intrinsic value,” Vanda said in a statement. “The board and management team remain confident that Vanda’s robust revenue, strong cash position and efficient operations position the company well for significant long-term growth far in excess of the bids.”
Vanda had $62.5 million in revenue in its most recent quarter, and a net income of $3.3 million, compared to a net loss of $6.4 million in the same quarter a year ago. It ended the quarter with $502 million in cash, 15% more than a year earlier.
Earlier this year, the Food and Drug Administration expanded approved use of its schizophrenia drug, Fanapt, as a treatment for bipolar 1 disorder. It is also preparing regulatory submissions for treatments for insomnia and gastroparesis.
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