Vanda rejects unsolicited acquisition proposal from Future Pak

Vanda Pharmaceuticals confirmed that, since March, it received several unsolicited proposals from Future Pak, to acquire all of the outstanding shares of Vanda. The most recent proposal from April 1 offered $7.25 – $7.75 per share, subject to certain terms and conditions. The Vanda Board of Directors in consultation with its independent financial and legal advisors, consistent with its fiduciary duties, carefully reviewed the Conditional Proposals and unanimously concluded that they are not in the best interests of the Company and its shareholders, as they significantly undervalue the Company. The Board believes the Conditional Proposals are opportunistic attempts to purchase the Company’s shares at a discount to Vanda’s intrinsic value and would transfer significant value to Future Pak at the expense of Vanda shareholders, including approximately $6.751 per share in cash and marketable securities. Future Pak’s latest unsolicited proposal provides a mere 7%-15% premium to such cash balance, ascribing therefore very little value to the Company’s significant revenue stream and pipeline.