Stephanie R. Irish
Acting Chief Financial Officer
Vanda Pharmaceuticals Inc.
Vanda Pharmaceuticals Reports Fourth Quarter
and Full Year 2009 Results
February 16, 2010 Vanda Pharmaceuticals Inc. (Vanda) (NASDAQ:
), 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 fourth quarter and full year ended December 31, 2009.
Vanda reported a net loss of $9.2 million for the fourth quarter of 2009, compared to $7.7 million
for the third quarter of 2009 and $7.5 million for the fourth quarter of 2008. Total revenue for
the fourth quarter of 2009 was $4.5 million, consisting of $2.6 million in upfront licensing
revenue and $1.9 million in product revenue for inventory sold to Novartis Pharma AG (Novartis).
The remaining $197.4 million in deferred revenue relating to the $200.0 million upfront payment
received from Novartis pursuant to the Fanapt (iloperidone) license agreement will be recognized
ratably ($2.2 million per month) through May 2017. Total expenses for the fourth quarter of 2009
were $13.8 million, compared to $7.7 million for the third quarter of 2009 and $7.7 million for the
fourth quarter of 2008. Research and development (R&D) expenses for the fourth quarter of 2009
were $2.3 million, compared to $2.1 million for the third quarter of 2009 and $3.6 million for the
fourth quarter of 2008. For the full year of 2009, total expenses were $40.5 million, compared to
$52.8 million for 2008. Total 2009 R&D expenses were $13.9 million, compared to $23.9 million
As of December 31, 2009, Vandas cash, cash equivalents, and marketable securities totaled
approximately $205.3 million. As of December 31, 2009, a total of approximately 27.6 million
shares of Vanda common stock were outstanding. Net loss per common share for the fourth quarter of
2009 was $0.34, compared to $0.28 for the third quarter of 2009 and $0.28 for the fourth quarter of
2008. For the full year of 2009, net loss per common share was $1.33, compared to $1.92 for the
full year of 2008.
During the fourth quarter of 2009, Vanda focused its efforts on the successful transition to
Novartis of commercial, regulatory and manufacturing documents, materials and supplies relating to
Fanapt. On January 11, 2010, Vanda announced that Novartis Pharmaceuticals