Cycle Pharmaceuticals, a UK-based company, has maintained its offer to acquire Vanda Pharmaceuticals, a US-based biopharmaceutical firm, for $8.00 per share. This proposal values Vanda at approximately $488 million, representing an 80% premium over Vanda's closing share price on October 11, 2024. Despite the attractive premium, Vanda's board has rejected the offer, citing that it undervalues the company.

Vanda Pharmaceuticals, known for its innovative therapies addressing unmet medical needs, has faced recent challenges, including the FDA's rejection of its drug tradipitant for a stomach condition. This setback has not deterred Cycle Pharma, which remains confident in the potential synergies and value creation from the acquisition.

Cycle Pharma's proposal is not new; it follows a previous offer made in June 2024, which was also rejected by Vanda. The board of Vanda has consistently argued that the offers do not reflect the company's intrinsic value, considering its robust pipeline and commercial presence.

The ongoing negotiations highlight the strategic importance of Vanda's portfolio, which includes approved drugs like Hetlioz and Fanapt. Cycle Pharma's persistence underscores its strategy to expand its footprint in the rare disease market, leveraging Vanda's established products.

Despite the board's rejection, Cycle Pharma has urged Vanda's shareholders to express their views on the proposal, emphasizing the immediate and certain cash value it offers. The situation remains dynamic, with potential implications for both companies' strategic directions and market positions.