(Reuters) – Vanda Pharmaceuticals Inc on Wednesday said it is rejecting a takeover proposal from Future Pak, a privately-held contract manufacturer and packager of pharmaceuticals, as it significantly undervalues the company.
Shares of Vanda jumped 24% to $5.02 in early trading.
However, the stock was below Future Pak’s proposed cash consideration offer of $7.25 to $7.75 per share – a 79% to 92% premium to Vanda’s last closing price of $4.05.
The Washington, DC-based drugmaker said it had concluded that the proposal was not in the company’s best interest.
In its letters to Vanda, Future Pak said it was willing to explore ways to further improve the offer to provide shareholders additional upside beyond the stated cash consideration.
(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid)
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