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.
surf's up......crikey
