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Good solid pharma with profit!
Vanda Pharma posts 4Q profit as costs decline
Vanda Pharmaceuticals reports 4th-quarter profit on lower sales and compensation expenses
On Thursday February 10, 2011, 10:55 am
ROCKVILLE, Md. (AP) -- Vanda Pharmaceuticals Inc. said Thursday it turned a profit in the fourth quarter on reduced expenses, including lower costs related to its schizophrenia drug Fanapt.
The company reported net income of $2.2 million, or 8 cents per share. A year earlier Vanda lost $9.2 million, or 34 cents per share. Its revenue grew to $7.3 million from $4.5 million on greater revenue from licensing agreements.
Analysts expected a loss of 14 cents per share and $7.6 million in revenue, according to estimates compiled by FactSet.
The Food and Drug Administration approved Fanapt in May 2010. Vanda said its cost of goods sold decreased in the most recent quarter, with total operating expenses halved to $7 million.
Novartis AG markets Fanapt in the U.S. and Canada, and most of Vanda's revenue derives from a $200 million payment from the Swiss drugmaker that Vanda is recording gradually. It recorded $6.8 million in revenue from that payment during the fourth quarter of 2010, along with $511,000 in royalty revenue from Fanapt sales.
In 2010 the company earned $7.2 million, or 25 cents per share, reversing its 2009 loss of $35.9 million, or $1.33 per share. Revenue jumped to $35.2 million from $4.5 million.
Shares of Vanda Pharmaceuticals rose 62 cents, or 8.9 percent, to $7.61 in morning trading.
4:01PM Vanda Pharma Initiates Phase III clinical study aimed at resetting the body clock (VNDA) 6.36 +0.01 : Co announced it has initiated a Phase III clinical trial to evaluate tasimelteon in patients with non-24-hour sleep wake disorder, a condition experienced primarily by totally blind individuals that results in abnormal night sleep patterns and chronic daytime sleepiness.
Vanda Pharmaceuticals (VNDA)
EV/Rev = -1.31
Current share price: $6.15
Vanda is one of the few biotechs I follow that is actually trading below it's cash value. Vanda's primary product is fanapt - an atypical treatment for schizophrenia. Vanda has a licencing agreement with Novartis (NVS) for the sales of Fanapt. Vanda is fresh of a 52-week low of $6.20 and Fanapt sales have been, well, abysmal. The company reported only 4,000 total prescriptions of the schizophrenia drug in June - but it was only launched in January and they are hoping for further increases in sales. Vanda's revenue has largely come in the form of milestone payments from Novartis with Fanapt's royalties reaching only $1.5 million for the quarter.
Along with a potential increase in Fanapt sales, whether or not Vanda is a good buy relies largely on revenues realized from it's pipeline. Vanda is currently developing an injectable formulation of Fanapt that may add to their bottom line. Vanda is also developing Tasimelteon for the treatment of Non-24-Hour Sleep/Wake Disorder in blind individuals. Tasimelteon has reported positive phase III trials for improvement of sleep onset in this patient population. The company expects to file a new drug application (NDA) for Tasimelteon with the FDA in 2011.
Vanda is covered by three research analysts with an average 'buy' rating and an average one year price target of $13.50/share.
http://seekingalpha.com/article/222299-five-potential-small-cap-biotech-bargains?source=yahoo
Vanda Pharmaceuticals Reports Second Quarter 2010 Results
http://finance.yahoo.com/news/Vanda-Pharmaceuticals-Reports-prnews-839670169.html?x=0&.v=1
VNDA may be worth a trade here at its current cash level & the large short position:
Total Cash (mrq): 202.42M
Total Cash Per Share (mrq): 7.26
Total Debt (mrq): 0.00
Total Debt/Equity (mrq): N/A
Current Ratio (mrq): 6.15
Book Value Per Share (mrq): 0.96
Avg Vol (3 month)3: 580,981
Avg Vol (10 day)3: 319,962
Shares Outstanding5: 27.88M
Float: 27.22M
% Held by Insiders1: 14.13%
% Held by Institutions1: 83.40%
Shares Short (as of Jun 15, 2010)3: 4.15M
Short Ratio (as of Jun 15, 2010)3: 10.30
Short % of Float (as of Jun 15, 2010)3: 15.00%
Shares Short (prior month)3: 4.38M
Vanda Pharmaceuticals Downgrade: Why I Don't Buy It
Vanda Pharmaceuticals (VNDA) received a downgrade from Madison Williams last week to "reduce" from "buy."
Analyst David Moskowitz cited a physicians survey conducted by Madison Williams as the reason behind the downgrade, according to publicly released information. The survey of psychiatrists concluded that Novartis (NVS) was doing an "abysmal" job at handling Fanapt's commercial launch, which took place earlier this year.
With the downgrade, Madison also lowered their price target for VNDA to $7 from $19.
While not discounting this "survey" entirely, it sounds a bit bogus to me since the $21 million in sales posted by Novartis in the quarterly report is hardly an "abysmal" number, especially considering that Fanapt was not on the market for the full first quarter. As for the psychiatrists questioned in the survey, I'd have to wonder if it was a random scientific poll of opinions, or just a smattering of phone calls and emails to contacts in the rolodex sitting on David Moskowitz's desk.
I've never been a fan of surveys or polls, especially this type where the public has no idea who or what was asked and in what pretense.
The price target to seven dollars is also a questionable target, in my opinion, based on the fact that Vanda is sitting on over $200 million in the bank and has just turned its first-ever quarterly profit.
It's also hard to judge the potential of Fanapt based on just one quarter (that wasn't a full quarter) of sales numbers, especially when Novartis is involved - it's not like these guys are new to the game. I'd put more faith in the seven dollar number if the sales numbers don't grow to much more than the $21 million number over the next quarter or two, but even then it'll be too premature to call it a dead-beat drug.
The timing of this downgrade is curious as well, as it seemed to coincide with a rise in the number of shares sold short, as if those "in the know" knew it was coming.
The one piece of information that became apparent from Vanda's quarterly report that could have scared off some investors is the royalty number of ten percent that Novartis pays to Vanda - roughly in line with what Titan Pharmaceuticals (TTNP.pk) will receive.
Other than that, to see shares of VNDA trading for just over eight dollars when things are picking up for the company just doesn't add up - unless you're of the mind that a 'tree shake' is taking place and someone wants your shares.
This is one of those opportunities where the shorts will play their games and the small investor has a chance to take advantage of those games by buying-in for an attractive price.
What's even more attractive right now, however, is TTNP.PK falling to $1.20 - and in a similar fashion to VNDA-- there's real no reason for that drop either, other than it looks like someone else wants to pick up as many shares as they can while dropping the price.
Of course, this is all just my opinion - each investor should do his or her own DD.
Disclosure: Long TTNP, no position VNDA.
http://seekingalpha.com/article/203322-vanda-pharmaceuticals-downgrade-why-i-don-t-buy-it
Biotech Busts And Breakthroughs
The markets keep getting tougher. Vanda Pharmaceuticals ( VNDA - news - people ), (its 20% decline during the month puts it second-to-worst on our losers list) is facing an unsuccessful launch of its schizophrenia drug Fanapt, according to Madison Willliams analyst David Moskowitz. Merck's ( MRK - news - people ) new entrant, Saphris, is soaking up all the demand, while Novartis ( NVS - news - people ), which markets Fanapt, seems to be putting little weight behind the product.
http://www.forbes.com/2010/05/01/biotech-busts-breakthroughs-business-healthcare-april-2010.html?partner=yahootix
Biotech Calendar: Key Dates for May
Vanda Pharmaceuticals(VNDA) first-quarter earnings, including update on commercial launch of the schizophrenia drug Fanapt.
http://www.thestreet.com/_yahoo/story/10742806/1/biotech-calendar-key-dates-for-may.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Fanapt First Quarter Sales Bode Well for Vanda, Novartis
Vanda Pharmaceuticals (VNDA) and marketing partner Novartis (NVS) announced the commercial launch of Vanda's schizophrenia drug Fanapt in early January, and this week Novartis released first quarter sales results for the product that at one point was issued a non-approvable letter from the FDA.
According to a Novartis media release dated April 20th, Fanapt raked in a total of $21 million for the quarter, a solid start for a new drug entering a $14-$20 billion market.
While the VNDA share price went largely unchanged on the news, the $21 million in Fanapt revenue generated by Novartis should come as an encouraging sign for things to come, because it puts a projected first year of $100 million well within reach. That wouldn't be too bad a take for first year sales at all and would beat a lot of skeptical market sentiment about the potential of the product.
It's also conceivable that the powerhouse influence of the Novartis name, combined with the fact that many schizophrenia patients switch medications often, could even have Fanapt surpass the $100 million mark in first year sales.
Due to an existing marketing agreement, Vanda will receive a cut of the Fanapt revenue from Novartis, while Titan Pharmaceuticals (TTNP.PK) will also receive an 8% take on all sales up to $200 million and a 10% take on sales above that mark.
As the milestone payments and royalty revenues start rolling in for Vanda, the company looks to submit its sleep-aid drug Tasimelteon for FDA marketing approval at some point in 2011.
With Fanapt sales underway at a respectable pace and with the company holding a notice of allowance from the US Patent Office regarding an injectible form of Fanapt, the future looks brighter every day for Vanda Pharmaceuticals. A share price of close to twenty dollars is highly likely at some point during this year, in my opinion, especially if Novartis can build on the existing momentum of first quarter Fanapt sales.
An outright buyout of Vanda by a larger pharma is also possible-- in my opinion-- most likely by Novartis, who has already invested a significant amount in Vanda Pharmaceuticals and Fanapt.
Disclosure: No positions.
http://seekingalpha.com/article/199981-fanapt-first-quarter-sales-bode-well-for-vanda-novartis
4:01PM Vanda Pharma announces U.S. patent allowance for a long-acting injectable formulation of fanapt in the U.S. (VNDA) 10.29 -0.08 : Co announced that the U.S. Patent and Trademark Office has issued a notice of allowance for its patent application of a microsphere, long-acting injectable formulation of its antipsychotic product, Fanapt (iloperidone). When issued, this U.S. patent will expire on October 30, 2022, and in addition, the U.S. Patent and Trademark Office has granted a patent term adjustment of 300 days, leading to an effective expiration date of August 26, 2023.
7:35AM Vanda Pharma reports Q4 results (VNDA) 10.63 : Vanda Pharma reports Q4 earnings of ($0.34) vs ($0.16) First Call consensus; revs of $4.55 mln vs $3.34 mln First Call consensus. Co reports that their primary objective over the next quarter is to conserve cash while supporting the Fanapt launch. In addition, the Company intends to engage in discussions with several foreign regulatory agencies to review their filing requirements with respect to Fanapt(TM). Vanda also plans to continue the clinical, regulatory and commercial evaluation of tasimelteon. Although Vanda incurred transaction-related costs of approximately $6.0 million in the fourth quarter of 2009, which included financial advisor fees, consulting fees, legal expenses and employee bonuses, and $2.0 million in Fanapt inventory costs, Vanda's fixed overhead costs are expected to be ~$10.0 mln to $12.0 mln annually. Vanda will recognize revenue of $26.8 million in 2010 for the amortization of the deferred upfront payment received from Novartis.
Competitive Schizophrenia Market
Companies:Eli Lilly Co.Novartis AgVanda Pharmaceuticals, Inc. By Zacks Equity Research , On Tuesday January 12, 2010, 1:42 pm EST
Recently, Novartis (NYSE: NVS - News) launched Fanapt (iloperidone) in the U.S. Its twice daily tablets are for the treatment of schizophrenia in adults. Fanapt received approval from the US Food and Drug Administration (FDA) in May 2009.
Clinical trials have shown that Fanapt improved symptoms in schizophrenic patients compared to a placebo therapy. The most common adverse drug reactions were dizziness, dry mouth, fatigue, nasal congestion, orthostatic hypotension, somnolence, tachycardia and weight gain.
Under an agreement with Vanda Pharmaceuticals (NasdaqGM: VNDA - News), Novartis acquired exclusive commercialization rights to Fanapt in the U.S. and Canada in October 2009. In addition, Novartis has the rights to develop and commercialize an injectable form of the drug for these markets. Vanda will receive an upfront payment of $200 million as well as the potential to receive milestone payments of up to $265 million. Vanda also will receive royalties on the US and Canadian net sales of Fanapt.
In December 2009, Eli Lilly (NYSE: LLY - News) received FDA approval for Zyprexa Relprevv (olanzapine), the new extended-release injectable version of its blockbuster drug Zyprexa for the treatment of schizophrenia in adults. With respect to treatment option, the approval is significant as the Zyprexa Relprevv injection maintains therapeutic drug levels for up to four weeks, when the disease relapses following irregular intake of prescribed medications. Long-acting treatments play a beneficial role since non-adherence to medication is a big problem for the patients.
Schizophrenia is a chronic, severe and disabling mental disorder affecting 2.4 million Americans or about 1.1% of the adult population in the U.S. While there is no cure for the disease, proper medication can keep it in check. As per estimates, the global schizophrenia market was valued at $15.9 billion in 2008 which is expected to reach $17.2 billion by 2015.
Vanda Pharmaceuticals Reports Third Quarter 2009 Results
Press Release
Source: Vanda Pharmaceuticals Inc.
On 7:00 am EST, Monday November 2, 2009
Companies:Vanda Pharmaceuticals, Inc.
ROCKVILLE, Md., Nov. 2 /PRNewswire-FirstCall/ -- Vanda Pharmaceuticals Inc. (Vanda) (Nasdaq: VNDA - News), a biopharmaceutical company focused on the development and commercialization of clinical-stage products for central nervous system disorders, today announced financial and operational results for the third quarter ended September 30, 2009.
Vanda reported a net loss of $7.7 million for the third quarter of 2009, compared to $12.4 million for the second quarter of 2009 and $10.9 million for the third quarter of 2008. Total expenses for the third quarter of 2009 were $7.7 million, compared to $12.4 million for the second quarter of 2009 and $11.2 million for the third quarter of 2008. Research and development (R&D) expenses for the third quarter of 2009 were $2.1 million, compared to $7.2 million for the second quarter of 2009 and $3.8 million for the third quarter of 2008. The decrease in R&D expenses in the third quarter of 2009 relative to the second quarter of 2009 is primarily due to the regulatory consulting fees accrued in the second quarter as a result of the approval of Fanapt(TM) (iloperidone) by the U.S. Food and Drug Administration (FDA). The decrease in R&D expenses in the third quarter of 2009 relative to the third quarter of 2008 is primarily due to the completion of the Phase III clinical trial of tasimelteon in chronic primary insomnia in 2008.
As of September 30, 2009, Vanda's cash, cash equivalents, and marketable securities totaled approximately $20.7 million. As of September 30, 2009, a total of approximately 27.2 million shares of Vanda common stock were outstanding. Net loss per common share for the third quarter of 2009 was $0.28, compared to $0.46 for the second quarter of 2009 and $0.41 for the third quarter of 2008.
OPERATIONAL HIGHLIGHTS
On October 12, 2009, Vanda entered into an amended and restated sublicense agreement with Novartis Pharma AG (Novartis). The parties had originally entered into a sublicense agreement on June 4, 2004 pursuant to which Vanda obtained certain worldwide exclusive licenses from Novartis relating to Fanapt(TM). The agreement is subject to, and will become effective upon, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), which is expected by the end of 2009.
Pursuant to the agreement, Novartis will have exclusive commercialization rights to all formulations of Fanapt(TM) in the U.S. and Canada. Except for two post-approval studies started by Vanda prior to the execution date of the agreement, which Vanda is obligated to complete, Novartis will be responsible for the further clinical development activities in the U.S. and Canada, including the development of a long-acting injectable (or depot) formulation of Fanapt(TM).
Pursuant to the terms of the agreement, Vanda will be entitled to an upfront payment of $200 million, which it expects to receive within 30 days after the effective date of the agreement. Vanda will be eligible for additional payments totaling up to $265 million upon the achievement of certain commercial and development milestones for Fanapt(TM) in the U.S. and Canada. Vanda will also receive royalties, which, as a percentage of net sales, are in the low double-digits, on net sales of Fanapt(TM) in the U.S. and Canada. In addition, Vanda will no longer be required to make any future milestone payments with respect to sales of Fanapt(TM) or any future royalty payments with respect to sales of Fanapt(TM) in the U.S. and Canada.
Vanda retains exclusive rights to Fanapt(TM) outside the U.S. and Canada and Vanda will have exclusive rights to use any of Novartis' data for Fanapt(TM) for developing and commercializing Fanapt(TM) outside the U.S. and Canada. At Novartis' option, the parties will enter into good faith discussions relating to the co-commercialization of Fanapt(TM) outside of the U.S. and Canada or, alternatively, Novartis will receive a royalty on net sales of Fanapt(TM) outside of the U.S. and Canada.
Vanda continued the clinical, regulatory and commercial evaluation for tasimelteon, a MT1/MT2 melatonin agonist, currently in Phase III stage of development.
FINANCIAL DETAILS
Operating Expenses. Third quarter 2009 R&D expenses of $2.1 million consisted primarily of $0.5 million of salaries and benefits, $0.7 million of non-cash stock based compensation costs for R&D personnel, $0.2 million for the carcinogenicity study and $0.2 million in consulting fees. This compares to $7.2 million for the second quarter of 2009 and $3.8 million for the third quarter of 2008. The decrease in R&D expenses in the third quarter of 2009 relative to the second quarter of 2009 is primarily due to the regulatory consulting fees accrued in the second quarter as a result of the approval of Fanapt(TM) by the FDA. The decrease in R&D expenses in the third quarter of 2009 relative to the third quarter of 2008 is primarily due to the completion of the Phase III clinical trial of tasimelteon in chronic primary insomnia in 2008.
General and administrative (G&A) expenses of $5.3 million for the third quarter of 2009 consisted primarily of $0.4 million of salaries and benefits and $2.6 million of non-cash stock based compensation costs for G&A personnel, as well as $0.5 million of legal fees, $0.7 million of commercial costs and $0.2 million of insurance costs. This compares to $5.0 million for the second quarter of 2009 and $7.4 million for the third quarter of 2008. The decrease in G&A expenses in the third quarter of 2009 relative to the third quarter of 2008 is primarily due to lower stock-based compensation and commercial expenses.
Employee stock-based compensation expense recorded in the third quarter of 2009 totaled $3.3 million. Of these non-cash charges, $0.7 million was recorded as R&D expense and $2.6 million was recorded as G&A expense. For the second quarter of 2009 and the third quarter of 2008, total stock-based compensation expense was $2.8 million and $3.6 million, respectively. The increase in stock-based compensation expense in the third quarter of 2009 relative to the second quarter of 2009 is the result of the issuance of additional non-qualified stock options in 2009. The decrease in stock-based compensation expense in the third quarter of 2009 relative to the third quarter of 2008 is primarily due to a lower stock-based compensation expense resulting from the workforce reduction in the fourth quarter of 2008.
Cash and marketable securities decreased by $8.3 million during the third quarter of 2009. Changes included $7.7 million of net losses, increases of $0.5 million in inventory, decreases in accrued expenses and accounts payable of $2.9 million, increases in prepaid expenses of $1.5 million, offset by $3.9 million in non-cash depreciation, amortization, and stock-based compensation expense and $0.4 million in proceeds from the exercise of stock options.
Vanda's cash, cash equivalents and marketable securities as of September 30, 2009 totaled approximately $20.7 million, compared to approximately $46.5 million as of December 31, 2008.
Net loss for the third quarter of 2009 was $7.7 million, compared to a net loss of $12.4 million for the second quarter of 2009 and a net loss of $10.9 million for the third quarter of 2008.
Net loss per common share for the third quarter of 2009 was $0.28, compared to $0.46 for the second quarter of 2009 and $0.41 for the third quarter of 2008.
FINANCIAL GUIDANCE
Vanda is currently concentrating its efforts on the transition of the commercialization and development rights to Fanapt(TM) in the U.S. and Canada to Novartis and expects to work closely on the joint steering committee to assist in the anticipated commercial launch of Fanapt(TM) in the first quarter of 2010. The transition includes all regulatory, manufacturing and post-marketing commitments requested by the FDA. Under the terms of the agreement with Novartis, except for two small post-approval studies started by Vanda prior to the execution date of the agreement, which Vanda is obligated to complete, Novartis will be responsible for the further clinical development activities in the U.S. and Canada, including the development and commercialization of a depot formulation of Fanapt(TM). In addition, the Company will also evaluate the regulatory path and commercial opportunity for Fanapt(TM) outside the U.S. and Canada. Vanda will also continue the clinical, regulatory and commercial evaluation for tasimelteon. The Company intends to operate on a reduced spending plan with its fixed overhead costs expected to be approximately $2.5 million to $3 million per quarter.
CONFERENCE CALL
Vanda has scheduled a conference call for today, Monday, November 2, 2009, at 10:00 AM ET. During the call, Mihael H. Polymeropoulos, M.D., President and CEO, and Stephanie Irish, Acting CFO, will discuss quarterly results and other corporate activities. Investors can call 1-800-901-5247 (domestic) and 1-617-786-4501 (international) prior to the 10:00 AM start time and ask for the Vanda Pharmaceuticals conference call hosted by Dr. Polymeropoulos (participant passcode 46702701). A replay of the call will be available Monday, November 2, 2009, at 1:00 PM ET and will be accessible until Monday, November 9, 2009, at 5:00 PM ET. The replay call-in number is 1-888-286-8010 for domestic callers and 1-617-801-6888 for international callers. The access number is 87052099.
The conference call will be broadcast simultaneously on the company's Web site, http://www.vandapharma.com. Investors should click on the Investor Relations tab and are advised to go to the Web site at least 15 minutes early to register, download, and install any necessary software. The call will also be archived on the Vanda Web site for a period of 30 days, through December 2, 2009.
Details tomorrow.
I'd say VNDA hit it's lowest and best chance for "shorty" to cover. Now the value should show it's head. I think the drop was shorts and day traders wanting a buyout. I was very happy with the news myself because NVS will make a great partner and I'm a holder of TTNP from under .05 :) and I didn't want a buyout. I wish success for all three companies and feel value will be realized in the next year, then we can talk buyouts at MUCH MUCH HIGHER PPS! :)
I am scratching my head over this one
Guess the shorts won this battle? What! Or is it just closing the gap and getting it over and done with?
Congrats to us all. NVS, VNDA and TTNP longs, holders and profit takers :) I'm glad I've never shorted, bad day for any of them that didn't have it covered. You win some and you lose some.
Vanda Pharmaceuticals Enters into an Exclusive License Agreement for the Commercialization and Development of Fanapt(TM) in the U.S. and Canada for the Treatment of Schizophrenia
Press Release
Source: Vanda Pharmaceuticals Inc.
On 6:00 pm EDT, Monday October 12, 2009
Companies:Vanda Pharmaceuticals, Inc.
ROCKVILLE, Md., Oct. 12 /PRNewswire-FirstCall/ -- Vanda Pharmaceuticals Inc. (Nasdaq: VNDA - News) announced today that it has entered into an agreement with Novartis Pharma AG to commercialize and develop Fanapt(TM) (iloperidone), Vanda's anti-psychotic, in the U.S. and Canada. Fanapt(TM) was approved by the U.S. Food and Drug Administration on May 6, 2009 for the acute treatment of schizophrenia in adults. Fanapt((TM)) is a mixed dopamine D2 / serotonin 5HT2A receptor antagonist. The U.S. anti-psychotic market is approximately $14 billion.
Under the terms of the agreement, which amended and restated a prior agreement among the parties, Novartis will have exclusive commercialization rights to Fanapt(TM) for the U.S. and Canada. Novartis will be responsible for the further clinical development activities in these territories, including the development and commercialization of a long-acting injectable (or depot) formulation of Fanapt(TM). Vanda will retain rights to commercialize Fanapt(TM) oral and depot formulations outside the U.S. and Canada. At Novartis' option, the parties will enter into good faith discussions relating to an agreement for the co-commercialization of Fanapt(TM) outside of the U.S. and Canada or, alternatively, Novartis will receive a royalty on net sales.
Under the agreement, Vanda will receive an upfront payment of $200 million and will be eligible for additional payments totaling up to $265 million upon the achievement of certain development and commercial milestones for Fanapt(TM) in the U.S. and Canada. Vanda will also receive royalties on the U.S. and Canadian net sales of Fanapt(TM). The consummation of the transaction is subject to the receipt of customary regulatory approvals, which are expected by the end of 2009.
"I am very excited about our agreement with Novartis, as we now have one of the premier pharmaceutical companies in the world to commercialize the oral formulation and further develop and commercialize the depot formulation of Fanapt(TM) in the U.S. and Canada," said Mihael H. Polymeropoulos, M.D., Vanda's Chief Executive Officer. "This agreement allows Vanda to utilize current and future data generated by Novartis on the oral and depot formulations to pursue regulatory approvals outside the U.S. and Canada."
Cowen and Company, LLC acted as financial advisor to Vanda.
Bullish Case for Vanda Loses Steam
ROCKVILLE, Md. (TheStreet) -- In June, I spoke with two health care hedge fund analysts who laid out the bull and bear case on Vanda Pharmaceuticals(VNDA Quote) after the company surprised everyone by receiving regulatory approval for its schizophrenia drug Fanapt.
More from Adam Feuerstein Biotech Mailbag: Myriad PharmaFDA Approves Allos Lymphoma Drug: BioBuzzDendreon Investor Meeting: Provenge Sales Guidance for Six Months 2010Onyx Pharma CEO Mum While Stock Sinks: BioBuzzOnyx Breast Cancer Drug Continues to Dazzle: BioBuzzSpectrum Heeds Biotech's Golden Rule: BioBuzzBioCryst and the Financially Limber Analyst: BioBuzzDendreon Hot Going into Thursday's Investor Meeting: BioBuzzCell Thera Tries Bait-and-Switch With OpaxioNexavar Side Effect Affects Onyx Trading: BioBuzz Market Activity VNDA DOWNThe big debate back then -- and still today -- is whether Vanda will be acquired by a large drug company seeking an easier path into the competitive but lucrative schizophrenia treatment market. Well, it's been three months since I wrote that story. At the suggestion of a reader, I contacted the same two analysts again to see if their respective bull and bear positions in Vanda had changed, and if so, why.
Sure enough, "Mr. Bull" sold his position in Vanda and is no longer as bullish.
"I simply can't understand why they [Vanda] have not been bought at this point. Seems that if it hasn't happened by now, it's not going to happen, particularly at a huge premium," he told me, via email.
"Mr. Bear" is still growling, although he covered his short position. Which means he growls from the sideline, I guess.
"I'm not short anymore, but I still feel the same away. Fanapt is a me-too drug with no differentiation that will not do well in this [schizophrenia treatment] market," he told me during a recent phone call.
If he's so sure, why not remain short Vanda?
"We covered because I heard talk of Novartis(NVS Quote) being interested in Vanda, but that was back in July," he said, adding that since that time, he's become reasonably confident that Novartis has decided against buying Vanda and he doesn't believe it has any other suitors.
Vanda 2Q loss narrows on lower expenses
Vanda Pharmaceuticals' 2Q loss narrows on lower compensation, commercial expense, misses views
On Monday August 10, 2009, 7:59 am EDT
Companies:Vanda Pharmaceuticals, Inc.
ROCKVILLE, Md. (AP) -- Development-stage biotechnology company Vanda Pharmaceuticals Inc. said Monday its second-quarter loss narrowed on lower expenses.
The company lost $12.4 million, or 46 cents per share, compared with a loss of $13.5 million, or 51 cents per share, during the year-ago period. Vanda did not report revenue in either quarter.
Analysts polled by Thomson Reuters expected a loss of 41 cents per share.
Operating expenses fell 11 percent to $12.4 million, mainly on lower compensation and commercial costs.
The company makes treatments for central nervous system disorders. In May, the Food and Drug Administration approved the company's schizophrenia drug Fanapt. The company expects to begin marketing the drug later in 2009.
Chronic bronchitis is also known as chronic obstructive pulmonary disease.
Do you still feel bad for those who bought an 100% increase on thier investment?
Interesting post, thanks for the infromation.
I have taken mine and moved on, so whether VNDA does succeed or not, is not of concern to me anymore.
All the best and GLTY
I am a Psychiatrist who prescribes a lot of antipsychotic meds. The biggest obstacle to treatment is the side effects of meds. In my opinion Zyprexa by Lilly works the best but it causes the most weight gain, high cholesterol, high triglycerides and has risks of diabetes. Risperdal and Seroquel have less risk but they don't work as well - Risperdal causes high Prolactin levels and galactorrhea. Seroquel causes a lot of sedation which is sometimes a good thing but often interferes with daily functioning. Clozaril is another option but it causes weight gain and requires weekly blood tests to watch for low WBC.
Options that don't cause weight gain, etc are supposedly Geodon and Abilify but they only work about 50% of the time and many pts need additional antipsychotics. Recently we have seen more weight gain on Abilify.
What I'm getting at is that Psychiatrists and patients are waiting for an antipsychotic that works and doesn't cause weight gain. It is not just for Schizophrenia. Once it is approved we will use it for Bipolar patients who are manic, Dementia with psychosis and substance abused with psychosis. We have a lot of people getting older and getting psychotic in nursing homes and a lot of young people unfortunately doing meth on a daily basis until they get psychotic.
Of course there's some risk that Fanapt won't work or may cause some yet unknown serious side effect. In my opinion it's worth the risk. Buy VNDA and WAVX and I guarantee 1 or both will triple in the next year or your money back - not the money you invest, just the money you paid for this advice.
Vanda Pharmaceuticals: A Biotech Stock Worth Watching
During Tuesday's broad market rally, the action of a few stocks caught my attention and are worth watching for at least the rest of the week.
Vanda Pharmaceuticals (VNDA):
Vanda Pharmaceuticals, producer of the schizophrenia drug Fanapt that was recently approved in the US by the Food and Drug Administration, received a positive analysis and a $20 'fair value' price target from the investment website Morningstar.
The Fanapt approval sparked a major rally in the Vanda stock from right around one dollar, where it traded before the surprise approval, to close above thirteen bucks on Tuesday. A year earlier the FDA had refused to approve Fanapt, then known as Iloperidone, until more data on the drug became available.
Morningstar also indicated that they believe, since the antipsychotic market is a fluid one, that Fanapt will eventually become a billion dollar drug before patent expiration in 2016. The worst selling drug in that market is Pfizer's (PFE) Geodon, which rakes in $1 billion annually.
With the positive momentum already rolling with the Vanda stock, a $20 price target was not a risky bet on Morningstar's part, and after some consolidation in the current trading range, VNDA should march upwards towards that mark. Should first year sales exceed initial expectations, a price higher than that $20 mark is highly possible.
Vanda is set to launch the product by fourth quarter this year.
VNDA is worth watching right now because the company has received a lot of press lately, and in the trading volatility, any drop to ten dollars would make for a terrific buying opportunity.
Don't expect as quick a ride to twenty, however, as was the ride to ten.
Disclosure: VFC has no shares of VNDA.
We will close in green today... Let see how shorties can hold the shares over the weekend.
That is excellent news for VNDA and its shareholders!!...
Too bad some poster was saying this was going to drop like a rock.... he even guaranteed it.
Vanda said it expects to start shipping the drug later this year. The company said it will consider a partnership in bringing Fanapt to market, but will look at other options as well.
In a note to clients, Natixis Bleichroeder analyst Corey Davis said the decision was "one of the most surprising moves we've seen out of the FDA thisyear." He said Fanapt should have patent protection until 2016 or 2017, and doctors may be willing to switch patients on other drugs over to Fanapt.
He also wrote that Fanapt "arguably has one of the most benign safety profiles of all the (atypical antipsychotic drugs) out there," comparing it treatments like risperidone. Davis upgraded Vanda stock to "buy" from "hold," and lifted his price target to $12 per share from $1.
LOL... good one chewy...
"GUARANTEED TO DROP LIKE A ROCK"...
... lol... my sides are splittin.. genious.
you guys actually listened to jackson?
I hope your' joking. Never ever listen to people on the BB's. Specially not one that claims he is not trading the stock, yet is calling you a fool for holding.
Well it dropped over 30% after that, so give it up buddy.
You missed out makin' money, so deal with it.
LOL....
(Jackson227 wrote;)
I've never shorted a share of anything in my life, but if you're long, then you just wait and see what happens.
This thing is going to drop like a ton of bricks.
GUARANTEED.
Way to go. Way to seize the opportunity!
Happy trading!
you might want to adopt a new method to posting your opinion, as you obviously don't know what you are talking about...lol
If you bought when you were telling everyone to sell, you would have made some serious coin.
You might want to consider adopting a new method of trading instead of hiding behind the "he told me to" philosophy.
Actually I was right.
Those that sold at 9-10 were the smart ones.
It pulled back 30% after that run giving people more than ample opportunity to buy back in.
I will not be careful about what I post, and you have a weak argument.
Too bad for you if you missed the last gains.
hahaha
Elcheepo you should always follow your gut. That way you take the praise or the blame however things turn out.
Having said that I too decided not to drop some loot in VNDA after seeing Jacksons posts. That'll teach me.LOL!
TIP to check out for you GXPI may be headed for .0065. Today Ran from .002 to .0046 and pulled back to .0035. ready for next leg up. Check it out and follow your gut!
Ya, but boy, you were really, really wrong...
Perhaps you should be more careful what you post,,, as you never know.
Surf, I can't reply as I don't have a paid membership... I am just expressing my opinion, much like jackson did about VNDA.
That's what you get for making decisions based on what other say.
Any way you break it down, this stock is way overpriced, and if you think it is a good deal, buy more and see how it treats you.
Wow, were you ever wrong...
too bad I took your advise and sold.
I guess I should never listen to these boards as you don't know what agenda a person may have.
I am out 10's of thousands for listening....
I was wrong.
Very surprised to see it continuing to go up.
Still WAY overvalued though.
Have a great day!
OT and BTW.... dump your winnin's into OSIR.
Isn't it amazing.... the gaps always get filled.
Good tech read JT!
Whatever you say.
I'm not buying
point being it's not tanking as you suggested.
Not really. If you're buying right now your a bagholder.
The smart people sold between 9 and 10 and moved on.
The move is done.
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http://www.vandapharma.com/
http://www.vandapharma.com/development.html
http://finance.yahoo.com/q/ks?s=VNDA
Vanda is developing important new medicines to improve the lives of patients. We use new technologies, including genetics and genomics, to inform our drug discovery, our clinical trials, and our commercial positioning of our compounds. We are working to advance the science of developing new medicines and to use novel approaches to deliver these new medicines to patients.
Our CEO, Mihael Polymeropoulos, MD, founded Vanda in 2003. Previously, he founded and ran the Novartis global Pharmacogenetics department, one of the industry leaders. Prior to that he worked for many years at the National Institute of Mental Health and the National Human Genome Research Institute, where he did pioneering work in gene mapping. He founded Vanda in partnership with Care Capital LLC, the prominent biopharmaceuticals-focused investment firm, and Bio*One Capital, an investment arm of the Singapore government with a focus on new biomedical enterprises.
Vanda has assembled an experienced team and a stable of clinical stage compounds to deliver on its vision.
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