Cycle Pharmaceuticals a rapidly growing pharmaceutical company focused on treatments for the underserved rare disease patient community, have confirmed that it made a proposal to the Board of Directors of Vanda Pharmaceuticals, Inc on May 24, 2024 to acquire 100% of Vanda’s issued and outstanding shares for a cash consideration of $8.00 per Vanda share, representing a total cash consideration of $466 million.
Cycle’s proposal represents:
- Immediate and certain cash value for all Vanda shareholders;
- A 98% premium above Vanda’s closing share price on April 16, 2024, the day prior to the public disclosure of the initial offer by Future Pak LLC of $4.05 per share;
- A 63% premium above Vanda’s closing share price on May 23, 2024, the day before Cycle submitted its proposal to the Vanda Board;
- An all-cash upfront offer exceeding the cash portion of Future Pak’s revised proposal for Vanda on May 7, 2024; and
- A 58% premium above Vanda’s closing share price on June 5, 2024.
Cycle has substantial cash on hand, and both of Cycle’s financial advisors are highly confident that, following limited due diligence, committed financing will be put in place for the transaction. Cycle will obtain fully underwritten, binding commitment letters for any debt financing prior to signing a definitive merger agreement, which will not contain any financing contingency.
