Future Pak confirms proposal to acquire Vanda Pharmaceuticals for $7.25-$7.75

Future Pak announced that it has submitted three proposals since February to acquire all of the outstanding shares of common stock of Vanda Pharmaceuticals, and confirms that its most recent proposal to acquire Vanda for cash consideration of $7.25-$7.75 per share remains open for Vanda and its Board of Directors to consider. The current proposal implies a premium of 79.0% to 91.4% to Vanda’s closing price of $4.05 as of April 16. In its letters to Vanda, Future Pak has also expressed a willingness to explore various ways to further improve its proposal that could provide Vanda shareholders additional upside beyond the stated cash consideration. Building on this proposal, whether through structural enhancements, such as Contingent Value Rights, or a potential increase in cash consideration, would require engagement with and information from Vanda. To date Vanda has provided neither, despite Future Pak’s attempts to engage with the company and three previous written proposals containing offers to deliver 76.4% to 97.4% premiums to the then prevailing Vanda stock price. Future Pak would not require a financing contingency in connection with a transaction and has the full support of its strategic financial partner, Colbeck Capital Management.