Vanda Pharmaceuticals announced on Wednesday that it has rejected acquisition offers from UK's Cycle Pharmaceutical and contract manufacturer Future Pak, stating that both proposals undervalue the American pharmaceutical company.
This marks the third time Vanda has turned down an acquisition bid from Future Pak. Since receiving Future Pak's first offer in April this year, Vanda has adopted a shareholder rights plan, commonly known as a "poison pill," to reduce the risk of a hostile takeover.
The plan aims to prevent any entity from acquiring more than 10% of the shares without board approval.
Last week, in its final acquisition attempt, Future Pak raised the cash portion of its offer to between $8.50 and $9.00 per share and maintained the previously offered contingent value rights of approximately $4.27 per share.
Cycle Pharma made a $8 per share cash acquisition offer earlier this month, valuing the company at $466 million.
On Wednesday, Vanda's board rejected both proposals, stating, "Both severely undervalue Vanda and are not in the best interests of the company and its shareholders."
