Vanda Pharmaceuticals Rejects Cycle’s Second Takeover Bid Amid FDA Rejection of Tradipitant

Second Rejection:
Vanda Pharmaceuticals has rejected a second takeover bid from Cycle Pharmaceuticals, valuing the company at $8 per share, or $488 million.

FDA Rejection:
The rejection comes after the FDA denied approval for Vanda’s drug tradipitant, proposed for treating gastroparesis.

Undervaluation:
Vanda’s board believes the offer “substantially undervalues” the company and is not in the best interests of its stockholders.

Previous Attempt:
Cycle previously attempted to acquire Vanda in June 2024 with a similar offer of $8 per share.

Vanda’s Confidence:
Vanda remains confident in its growth potential, driven by a strong cash position and efficient operations, which it believes will deliver long-term value exceeding Cycle’s offer.

Cycle’s Perspective:
Cycle argues that its offer represents an 80% premium to Vanda’s share price at the close of business on October 11, 2024.