Vanda Pharmaceuticals Confirms Receipt of Economically Identical Unsolicited, Non-Binding Proposal from Cycle Group Holdings Ltd.
Vanda Pharmaceuticals confirmed receipt of a second unsolicited, non-binding proposal from Cycle Group Holdings to acquire the company for $8.00 per share in cash. This proposal, received on September 23, 2024, is economically identical to the previously rejected offer from May 24, 2024. Vanda's Board of Directors unanimously determined that the proposal substantially undervalues the company and is not in the best interests of Vanda and its stockholders.
The Board evaluated all aspects of Vanda's business, including its clinical development pipeline, expanding commercial presence, and significant cash balance. They concluded that the proposal is an opportunistic attempt to purchase shares at a discount to Vanda's intrinsic value. The Board and management remain confident in Vanda's growth profile and long-term value creation potential, which they believe far exceeds the consideration offered by Cycle Group.
Vanda Pharmaceuticals ha confermato di aver ricevuto una seconda proposta non richiesta e non vincolante da Cycle Group Holdings per acquisire la società a 8,00 $ per azione in contante. Questa proposta, ricevuta il 23 settembre 2024, è economicamente identica all'offerta precedentemente rifiutata del 24 maggio 2024. Il Consiglio di Amministrazione di Vanda ha determinato all'unanimità che la proposta sottovaluta sostanzialmente la società e non è nel miglior interesse di Vanda e dei suoi azionisti.
Il Consiglio ha valutato tutti gli aspetti del business di Vanda, inclusi il suo pipeline di sviluppo clinico, la crescente presenza commerciale e un significativo equilibrio di cassa. Hanno concluso che la proposta è un tentativo opportunistico di acquistare azioni a un prezzo inferiore al valore intrinseco di Vanda. Il Consiglio e la direzione rimangono fiduciosi nel profilo di crescita di Vanda e nel potenziale di creazione di valore a lungo termine, che ritengono superi di gran lunga la considerazione offerta da Cycle Group.
Vanda Pharmaceuticals confirmó la recepción de una segunda propuesta no solicitada y no vinculante de Cycle Group Holdings para adquirir la compañía por 8,00 $ por acción en efectivo. Esta propuesta, recibida el 23 de septiembre de 2024, es económicamente idéntica a la oferta previamente rechazada del 24 de mayo de 2024. La Junta Directiva de Vanda determinado unánimemente que la propuesta subestima sustancialmente a la compañía y no está en el mejor interés de Vanda y sus accionistas.
La Junta evaluó todos los aspectos del negocio de Vanda, incluida su cartera de desarrollo clínico, presencia comercial en expansión y un saldo de efectivo significativo. Concluyeron que la propuesta es un intento oportunista de comprar acciones a un precio inferior al valor intrínseco de Vanda. La Junta y la gerencia se mantienen confiados en el perfil de crecimiento de Vanda y el potencial de creación de valor a largo plazo, que creen que supera con creces la consideración ofrecida por Cycle Group.
반다 제약이 사이클 그룹 홀딩스의 두 번째 비공식적이고 비구속적인 인수 제안서를 접수했다고 확인했습니다. 이 제안은 주당 8.00달러 현금으로 회사를 인수하는 내용입니다. 2024년 9월 23일에 접수된 이 제안은 2024년 5월 24일에 거절된 이전 제안과 경제적으로 동일하다고 합니다. 반다의 이사회는 전원 일치로 이 제안이 회사를 상당히 과소평가하고 있으며 반다와 주주들의 최선의 이익이 아니다고 판단했습니다.
이사회는 반다의 비즈니스 모든 측면을 평가했습니다. 여기에는 임상 개발 파이프라인, 확장하고 있는 상업적 존재 및 상당한 현금 잔고가 포함되어 있습니다. 그들은 이 제안이 반다의 본질적인 가치보다 할인된 가격에 주식을 구매하고자 하는 기회주의적 시도라고 결론지었습니다. 이사회와 경영진은 반다의 성장 프로필과 장기적인 가치 창출 잠재력에 대한 자신감을 유지하고 있으며, 이는 사이클 그룹이 제안한 고려사항을 훨씬 초과하는 것으로 믿고 있습니다.
Vanda Pharmaceuticals a confirmé avoir reçu une deuxième proposition non sollicitée et non contraignante de Cycle Group Holdings pour acquérir la société pour 8,00 $ par action en espèces. Cette proposition, reçue le 23 septembre 2024, est économiquement identique à l'offre précédemment rejetée du 24 mai 2024. Le conseil d'administration de Vanda a déterminé à l'unanimité que la proposition sous-estime considérablement la société et n'est pas dans le meilleur intérêt de Vanda et de ses actionnaires.
Le conseil a évalué tous les aspects de l'activité de Vanda, y compris son pipeline de développement clinique, sa présence commerciale en expansion et son solde de trésorerie important. Ils ont conclu que la proposition est une tentative opportuniste d'acheter des actions à un prix inférieur à la valeur intrinsèque de Vanda. Le conseil et la direction restent confiants dans le profil de croissance de Vanda et le potentiel de création de valeur à long terme, qu'ils estiment largement supérieur à la contrepartie proposée par Cycle Group.
Vanda Pharmaceuticals bestätigte den Erhalt eines zweiten unverbindlichen, nicht angeforderten Angebots von Cycle Group Holdings zur Übernahme des Unternehmens für 8,00 $ pro Aktie in bar. Dieses Angebot, das am 23. September 2024 eingegangen ist, ist wirtschaftlich identisch mit dem zuvor am 24. Mai 2024 abgelehnten Angebot. Der Vorstand von Vanda hat einstimmig festgestellt, dass das Angebot das Unternehmen substanziell unterbewertet und nicht im besten Interesse von Vanda und seinen Aktionären ist.
Der Vorstand bewertete alle Aspekte von Vandas Geschäft, einschließlich seiner klinischen Entwicklungspipeline, der wachsenden kommerziellen Präsenz und der erheblichen Barreserve. Sie kamen zu dem Schluss, dass das Angebot ein opportunistischer Versuch ist, Aktien zu einem Preis unter dem inneren Wert von Vanda zu kaufen. Der Vorstand und das Management bleiben zuversichtlich in Bezug auf Vandas Wachstumsprofil und das Potenzial zur Wertschöpfung auf lange Sicht, das ihrer Meinung nach das von Cycle Group angebotene Entgelt bei weitem übersteigt.
- Strong cash position
- Expanding commercial presence
- Confidence in long-term value creation potential
- Unsolicited acquisition proposal at $8.00 per share
- Board's perception of company undervaluation by the offer
Insights
This unsolicited bid from Cycle Group at
The Board's confidence in Vanda's growth profile and pipeline is noteworthy. Key assets include Hetlioz for Non-24-Hour Sleep-Wake Disorder and Fanapt for schizophrenia. The company's expanding commercial presence and efficient operations could indeed drive long-term value beyond the offer price.
However, investors should consider that Vanda's stock has been trading below
The Board's rejection of Cycle Group's unsolicited, non-binding proposal raises several legal considerations. Firstly, the Board appears to have fulfilled its fiduciary duty by carefully reviewing the proposal with independent advisors. This process is important in protecting the company against potential shareholder lawsuits alleging breach of fiduciary duty.
The repeated rejection of economically identical offers demonstrates the Board's consistent valuation stance. However, this could potentially attract activist investor attention or lead to a hostile takeover attempt. The Board's emphasis on the company's intrinsic value and future prospects serves as a preemptive defense against such scenarios.
Importantly, the Board's decision not to pursue the proposal doesn't preclude future negotiations or a potential sale. It merely indicates that the current offer is deemed inadequate. This leaves the door open for improved offers while maintaining the company's negotiating position.
Board Has Determined That Latest Proposal Is Not in the Best Interests of the Company or Stockholders
Cycle Group's second proposal was received by Vanda on September 23, 2024. The terms of Cycle Group's proposal are economically identical to the previously evaluated and rejected indication of interest received from Cycle Group on May 24, 2024. Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, Vanda's Board of Directors carefully reviewed the second proposal and unanimously determined that it substantially undervalues Vanda and is not in the best interests of the Company and its stockholders. Accordingly, the Board has determined not to pursue the proposal.
The Vanda Board again evaluated all aspects of Vanda's business and compared Vanda's prospects for creating stockholder value to the unsolicited proposal. The Board concluded that the latest proposal from Cycle Group is another opportunistic attempt to purchase the Company's shares at a discount to Vanda's intrinsic value. As part of this process, the Board updated its analysis of the Company's clinical development pipeline, expanding commercial presence and significant cash balance.
The Board and management team remain confident that Vanda's growth profile, strong cash position and efficient operations position the Company well for significant long-term value creation far in excess of the consideration offered by Cycle Group.
There is no action for stockholders to take at this time.
About Vanda Pharmaceuticals Inc.
Vanda is a leading global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. For more on Vanda Pharmaceuticals Inc., please visit www.vandapharma.com and follow us on X @vandapharma.
Cautionary Note Regarding Forward Looking Statements
Various statements in this press release, including, but not limited to, statements regarding the Board's review and evaluation of Cycle Group's proposal are "forward-looking statements" under securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are based upon current expectations and assumptions that involve risks, changes in circumstances and uncertainties. Therefore, no assurance can be given that the results or developments anticipated by Vanda will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Vanda. Forward-looking statements in this press release should be evaluated together with the various risks and uncertainties that affect Vanda's business and market, particularly those identified in the "Cautionary Note Regarding Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Vanda's most recent Annual Report on Form 10-K, as updated by Vanda's subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the
All written and verbal forward-looking statements attributable to Vanda or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Vanda cautions investors not to rely too heavily on the forward-looking statements Vanda makes or that are made on its behalf. The information in this press release is provided only as of the date of this press release, and Vanda undertakes no obligation, and specifically declines any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Vanda Corporate Contact:
Kevin Moran
Senior Vice President, Chief Financial Officer and Treasurer
Vanda Pharmaceuticals Inc.
202-734-3400
pr@vandapharma.com
Jim Golden / Jack Kelleher / Dan Moore
Collected Strategies
VANDA-CS@collectedstrategies.com
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SOURCE Vanda Pharmaceuticals Inc.
FAQ
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