For Immediate Release
Stephanie R. Irish
Acting Chief Financial Officer
Vanda Pharmaceuticals Inc.
Vanda Pharmaceuticals Reports Fourth Quarter and Full Year 2008 Results
February 11, 2009 Vanda Pharmaceuticals Inc. (NASDAQ: VNDA
biopharmaceutical company focused on the development and commercialization of clinical-stage
product candidates for central nervous system disorders, today announced financial and operational
results for the fourth quarter ended December 31, 2008.
Vanda reported a net loss of $7.5 million for the fourth quarter of 2008, compared to $10.9 million
for the third quarter of 2008 and $20.7 million for the fourth quarter of 2007. Total expenses for
the fourth quarter of 2008 were $7.7 million, compared to $11.2 million for the third quarter of
2008 and $22.0 million for the fourth quarter of 2007. Research and development (R&D) expenses for
the fourth quarter of 2008 were $3.6 million, compared to $3.8 million for the third quarter of
2008 and $12.6 million for the fourth quarter of 2007. The decrease in R&D expenses in the fourth
quarter of 2008 relative to the third quarter of 2008 is primarily due to the decrease in
stock-based compensation expense for R&D personnel due to the cancellation of unvested options.
The decrease in R&D expenses in the fourth quarter of 2008 relative to the fourth quarter of 2007
is attributable to lower clinical trial costs in 2008 compared to costs from trials conducted in
2007. For the full year of 2008, total expenses were $52.8 million, compared to $80.0 million for
2007. Total 2008 R&D expenses were $23.9 million compared to $47.2 million during 2007.
As of December 31, 2008, Vandas cash, cash equivalents, and marketable securities totaled
approximately $46.5 million. As of December 31, 2008, a total of approximately 26.7 million shares
of Vanda common stock were outstanding. Net loss per common share for the fourth quarter of 2008
was $0.28, compared to $0.41 for the third quarter of 2008 and $0.78 for the fourth quarter of
On November 6, 2008, Vanda submitted a Complete Response to the not approvable action letter that
the Company received from the U.S. Food and Drug Administration (FDA) on July 25, 2008 regarding
iloperidone. The FDA has indicated that it has accepted the Complete Response for review and has
set a new target action date of May 6, 2009.
Page 1 of 8