Rare disease-focused pharma firm Cycle Pharmaceuticals has offered to acquire Nasdaq-listed Vanda Pharmaceuticals for $466m in an all-cash deal.

Under the proposal, the UK-based Cycle Pharmaceuticals intends to pay $8 per share to Vanda Pharmaceuticals’ shareholders.

Vanda Pharmaceuticals is a US-based biopharmaceutical company engaged in developing and commercialising drugs to address high unmet medical needs. The company’s products include Hetlioz (tasimelteon) for sleep-wake disorder, Fanapt (iloperidone) for schizophrenia, and Ponvory (ponesimod) for multiple sclerosis.

Cycle Pharmaceuticals, on the other hand, specialises in rare metabolic, immunological, and neurological genetic conditions.

It has six drugs available in the US market which include Nityr tablets, Sajazir injection, Javygtor tablets and powder, Tascenso Odt, Tiopronin delayed-release tablets, and Ormalvi tablets.

The UK-based firm’s offer reflects a 98% premium over Vanda Pharmaceuticals’ closing share price on 16 April 2024, which is the day before the public disclosure of the initial offer by Future Pak of $4.05 per share.

Cycle Pharmaceuticals’ bid is also a 63% premium above the closing share price of Vanda Pharmaceuticals on 23 May 2024, which is the day prior to the former’s submission of the proposal.

According to Cycle Pharmaceuticals, it has an extensive US operational and distribution footprint, which makes it a strong strategic fit for Vanda Pharmaceuticals’ commercialised therapies and clinical development pipeline.

Cycle Pharmaceuticals stated: “Given our familiarity with Vanda, its brands and our extensive knowledge of the industry, we believe we can efficiently and quickly complete our diligence.

“Once we receive access to the required information, we believe that we can complete our due diligence within two-three weeks and reach a definitive agreement shortly thereafter.”

Vanda Pharmaceuticals said that its board of directors would assess the expression of interest to ascertain the most suitable course of action for the benefit of the company and its shareholders.