(Reuters) – Vanda (NASDAQ: ) Pharmaceuticals said on Wednesday it rejected an offer from UK-based Cycle Pharmaceuticals and a revised bid from contract manufacturer Future Pak, adding that both drugs undermined the American drugmaker.
This is the third time Vanda has turned down a purchase offer from Future Pak. After its first offer from Future Pak in April, Vanda adopted a shareholder rights program, known as the “poison pill”, to reduce the chances of a hostile takeover.
This plan was adopted to prevent any entity from acquiring more than 10% stake without the approval of the board.
Last week, Future Pak raised the cash component of its takeover offer as part of a last-ditch effort to acquire Vanda. It raised the stake to $8.50-$9.00 per share and rights at a previously proposed potential value of $4.27 per share.
Cycle Pharma’s buyout offer earlier this month of $8 per share would value Vanda at $466 million.
On Wednesday Vanda’s board rejected both requests, saying, “both are detrimental to Vanda and not in the best interests of the Company and its shareholders”.
