Vanda Stock Soars Over 15% As Cycle Pharma Reaffirms Buyout Deal: Bullish Retail Wants More

Shares of Vanda Pharmaceuticals, Inc. ($VNDA) surged over 15% on Monday, with the ticker ranking among the top 10 trending symbols on Stocktwits.

UK-based Cycle Pharmaceuticals reaffirmed its proposal to acquire all issued and outstanding shares of Vanda for an all-cash consideration of $8 per share. The offer values Vanda at a fully diluted equity value of $488 million.

Cycle made its renewed proposal public, citing Vanda’s board’s continued refusal to engage, and what it described as “entrenchment efforts” aimed at disenfranchising shareholders.

Cycle said its proposal offers an 80% premium to Vanda’s closing price on Friday and a 58% premium compared to its price on June 5, when the initial offer was first made public.

“In short, it is clear that Vanda’s Board is not acting in the best interests of shareholders,” Cycle said in a statement.

Vanda had not issued a public response at the time of writing.

It also highlighted the Vanda board’s recent failure to secure FDA approval for tradipitant after the drug missed its primary endpoint in clinical trials to treat symptoms in gastroparesis.

On Stocktwits, retail sentiment for VNDA turned ‘extremely bullish,’ with many investors demanding a higher offer than the current $8 per share.

One user even suggested management buy back shares if they believe the company is undervalued.

Vanda reportedly owns the commercial rights to three drugs treating conditions like a rare sleep disorder, schizophrenia, and multiple sclerosis. Cycle, meanwhile, has six drugs on the market addressing rare metabolic and immunological conditions, as well as multiple sclerosis.

VNDA stock, with a market capitalization exceeding $250 million, is up more than 14% this year.

Read next: SoFi Stock Surges On $2B Fortress Loan Deal, Retail Excitement Builds
 

Share

·

Add us on