Vanda Pharmaceuticals: I Believe That The Bidding War Is Not Over

Edward Vranic, CFA
6.54K Followers
(7min)

Summary

  • Vanda Pharmaceuticals Inc. received and then refused two takeover bids that were well above current market prices.
  • Vanda currently trades below net cash despite having significant revenue and operations.
  • Vanda has disgruntled shareholders who may find creative ways to maximize shareholder value, despite a recent AGM failing to oust the unpopular Board of Directors and an existing poison pill.
  • Retail shareholders can buy Vanda for less than the company's cash value, getting the potential benefit from the actions of activist shareholders for free.

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Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) is a takeover target. The company received an $8.00 per share bid from Cycle Pharmaceuticals. It also received an upwards-revised bid of $8.50 to $9.00 from Future Pak, that included up to $260 million of

This article was written by

6.54K Followers
I am a private investor based out of Toronto, Canada and I have been investing since 2003. After 8 years in Corporate Finance with a Canadian Telecom company I have decided to dedicate myself full-time to the capital markets. I write on Seeking Alpha to demonstrate my financial analysis and writing skills across a variety of industries and to take advantage of any story-based trading opportunity that may arise. My passion and greatest depth of knowledge is on Canadian small cap stocks and I consider my blog posts to be some of my best work. I am interested in any freelance opportunities that may arise outside of Seeking Alpha on Canadian or American listed stocks. Currently challenging myself to do a high volume of quality analysis.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VNDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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