WASHINGTON, Nov. 7, 2013
/PRNewswire/ -- Vanda Pharmaceuticals Inc. (Vanda) (NASDAQ:
VNDA), a biopharmaceutical company focused on the development and
commercialization of products for the treatment of central nervous
system disorders, today announced financial and operational results
for the third quarter ended September 30,
2013.
Key Highlights:
- On July 29, 2013 Vanda
announced that the U.S. Food and Drug Administration (FDA) accepted
the filing of and granted priority review classification to Vanda's
New Drug Application (NDA) for tasimelteon, a circadian regulator
for the treatment of Non-24-Hour Disorder (Non-24) in the totally
blind.
- The FDA has scheduled a Peripheral and Central Nervous
System Drugs Advisory Committee Meeting on November 14, 2013, for the review of Vanda's NDA
for tasimelteon, proposed trade name HETLIOZ™, for
the treatment of Non-24.
- The FDA determined the action target date under the
Prescription Drug User Fee Act (PDUFA-V) for tasimelteon to be
January 31, 2014.
- On August 7, 2013 Vanda
completed the public offering of 4.68 million shares of common
stock resulting in net proceeds of $48.6
million.
- Vanda recorded third quarter 2013 revenue of $8.7 million including royalties of $2.0 million. Fanapt® prescriptions, as
reported by IMS, were approximately 43,600 for the third quarter of
2013. This represents a 13% increase over third
quarter 2012 prescriptions and a 5% increase over second quarter
2013 prescriptions.
THIRD QUARTER 2013 REPORTED RESULTS
Total revenues for the third quarter of 2013 were $8.7 million, compared to $8.3 million for the same period in 2012.
Third quarter 2013 revenues included $2.0 million in Fanapt® royalties
received from Novartis as compared to royalties of $1.5 million for the third quarter of 2012.
Total operating expenses for the third quarter of 2013 were
$14.1 million, compared to
$13.7 million for the third quarter
of 2012. Third quarter 2013 research and development expenses
of $8.0 million includes $3.5 million in milestones associated with the
FDA acceptance of the tasimelteon filing. The primary driver
of the lower research and development expenses in the third quarter
of 2013 as compared to $10.2 million
in the third quarter of 2012 was the completion of the tasimelteon
Non-24 and Major Depressive Disorder efficacy studies.
General and administrative expenses of $5.7 million for the third quarter of 2013 were
$2.6 million higher than the third
quarter of 2012 and reflect the increased commercial activity in
preparation for a potential tasimelteon commercial launch in
the United States.
Vanda recorded a net loss of $5.4
million for the third quarter of 2013, compared to a net
loss of $5.3 million for the same
period in 2012. Diluted net loss per share for the third
quarter of 2013 was $0.17, compared
to a diluted net loss per share of $0.19 for the third quarter of 2012.
Cash, cash equivalents and marketable securities (Cash)
increased by $38.5 million to
$142.2 million as of September 30, 2013, primarily as a result of the
sale of common stock in Vanda's public offering in August
2013.
Year to Date
September 30, 2013 Key Financial Figures1
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Nine Months
Ended
|
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September
30
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September
30
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($ in thousands,
except per share amounts)
|
2013
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2012
|
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Change
($)
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Change
(%)
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|
Total
revenues
|
$
25,096
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$
24,807
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$
289
|
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1%
|
Research &
development expenses
|
21,968
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|
34,829
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|
(12,861)
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(37%)
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General &
administrative expenses
|
14,743
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|
10,657
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|
4,086
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38%
|
Non-cash stock-based
compensation2
|
3,321
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|
3,171
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150
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5%
|
Net loss
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(12,632)
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(21,295)
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8,663
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41%
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Diluted net loss per
share
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$
(0.43)
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$
(0.75)
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$
0.32
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43%
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Third
Quarter 2013 Key Financial Figures1
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Three Months
Ended
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September
30
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June
30
|
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($ in thousands,
except per share amounts)
|
2013
|
|
2013
|
|
Change
($)
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|
Change
(%)
|
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|
|
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|
Total
revenues
|
$
8,709
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|
$
8,319
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$
390
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5%
|
Research &
development expenses
|
8,026
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|
5,982
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|
2,044
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34%
|
General &
administrative expenses
|
5,711
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|
5,074
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|
637
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13%
|
Non-cash stock-based
compensation2
|
1,539
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|
830
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|
709
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85%
|
Net loss
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(5,380)
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(3,079)
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(2,301)
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(75%)
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Diluted net loss per
share
|
$
(0.17)
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$
(0.11)
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$
(0.06)
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(55%)
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Select Cash Flow
Data1
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Nine Months
Ended
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September
30
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September
30
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($ in
thousands)
|
2013
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2012
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Net cash provided by
(used in)
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Operating
activities
|
$ (27,439)
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$ (31,068)
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Investing
activities
|
31,421
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|
47,660
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|
Financing
activities
|
49,418
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|
-
|
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Select
Balance Sheet Data1
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September
30
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June
30
|
|
September
30
|
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|
($ in
thousands)
|
2013
|
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2013
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2012
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Total cash and
marketable securities
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$
142,172
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$
103,633
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$
134,404
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(1)
Unaudited
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(2) Non-cash stock-based compensation is allocated to
both Research & development and General & administrative
expenses
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OPERATIONAL HIGHLIGHTS
On July 29, 2013, Vanda announced
that the FDA accepted the filing of and granted a priority review
classification to Vanda's NDA for tasimelteon, a circadian
regulator for the treatment of Non-24 in the totally blind.
Currently, there is no approved treatment for Non-24 and
tasimelteon has the potential to address this unmet medical need.
The FDA has scheduled a Peripheral and Central Nervous System
Drugs Advisory Committee Meeting on November
14, 2013, for the review of Vanda's NDA for tasimelteon,
proposed trade name HETLIOZ™, for the treatment of
Non-24. The FDA determined the action target date under the
Prescription Drug User Fee Act (PDUFA-V) for tasimelteon to be
January 31, 2014.
Vanda recorded third quarter 2013 revenue of $8.7 million including $6.7 million in licensing revenue related to the
amortization of the upfront payment received from Novartis for U.S.
and Canadian commercial rights to Fanapt® and Fanapt® royalties of
$2.0 million. Fanapt®
prescriptions, as reported by IMS, were approximately 43,600 for
the third quarter of 2013. This represents a 13% increase
over third quarter 2012 prescriptions and a 5% increase versus
second quarter 2013 prescriptions.
2013 FINANCIAL GUIDANCE
2013 expenses are expected to reflect lower research and
development spending as compared to 2012 and an increase in
commercial spending. Reflecting the recent public offering
and year to date expenditures, Vanda now expects that it will end
the year with between $130.0 and $135.0
million in Cash. Total 2013 operating expenses are
expected to be between $50.0 and $55.0
million and decrease in Cash, excluding the impact of the
recent public offering, is expected to be between $35.0 and $40.0 million.
CONFERENCE CALL
Vanda has scheduled a conference call for today, Thursday, November 7, 2013, at 10:00 AM ET. During the call, Vanda's
management will discuss the third quarter 2013 financial results
and other corporate activities. Investors can call
1-888-895-5271 (domestic) and 1-847-619-6547 (international) and
use passcode 35919679. A replay of the call will be available
beginning Thursday, November 7, 2013
at 12:00 PM ET and will be accessible
until Thursday, November 14, 2013, at
5:00 PM ET. The replay call-in
number is 1-888-843-7419 for domestic callers and 1-630-652-3042
for international callers. The access number is 35919679.
The conference call will be broadcast simultaneously on Vanda's
website, www.vandapharma.com. Investors should click on the
Investor Relations tab and are advised to go to the website at
least 15 minutes early to register, download, and install any
necessary software or presentations. The call will also be
archived on Vanda's website for a period of 30 days.
ABOUT VANDA PHARMACEUTICALS INC.:
Vanda Pharmaceuticals Inc. is a biopharmaceutical company
focused on the development and commercialization of products for
the treatment of central nervous system disorders. For more
on Vanda, please visit www.vandapharma.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Various statements in this release are "forward-looking
statements" under the securities laws. Words such as, but not
limited to, "believe," "expect," "anticipate," "estimate,"
"intend," "plan," "project," "target," "goal," "likely," "will,"
"would," and "could," or the negative of these terms and similar
expressions or words, identify forward-looking statements.
Forward-looking statements are based upon current expectations that
involve risks, changes in circumstances, assumptions and
uncertainties. Important factors that could cause actual
results to differ materially from those reflected in the company's
forward-looking statements include, among others: Vanda's failure
to obtain, or any delay in obtaining, regulatory approval for
tasimelteon for the treatment of Non-24-Hour Disorder or to comply
with ongoing regulatory requirements; the costs and effects of
current or potential litigation and other factors that are
described in the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" sections
of Vanda's annual report on Form 10-K for the fiscal year ended
December 31, 2012 which is on file
with the SEC and available on the SEC's website at www.sec.gov and
Vanda's quarterly report on Form 10-Q for the quarter ended
September 30, 2013 to be filed with
the SEC. In addition to the risks described above and in
Vanda's annual report on Form 10-K and quarterly reports on Form
10-Q, other unknown or unpredictable factors also could affect
Vanda's results. There can be no assurance that the actual
results or developments anticipated by Vanda will be realized or,
even if substantially realized, that they will have the expected
consequences to, or effects on, Vanda. Therefore, no
assurance can be given that the outcomes stated in such
forward-looking statements and estimates will be achieved.
All written and verbal forward-looking statements attributable
to Vanda or any person acting on its behalf are expressly qualified
in their entirety by the cautionary statements contained or
referred to herein. Vanda cautions investors not to rely too
heavily on the forward-looking statements Vanda makes or that are
made on its behalf. The information in this release is
provided only as of the date of this release, and Vanda undertakes
no obligation, and specifically declines any obligation, to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
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VANDA
PHARMACEUTICALS INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
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Three Months
Ended
|
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Nine Months
Ended
|
|
|
|
|
|
September
30
|
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September
30
|
|
September
30
|
|
September
30
|
($ in thousands,
except per share amounts)
|
2013
|
|
2012
|
|
2013
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2012
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Revenues:
|
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Licensing
agreement
|
$
|
6,753
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$
|
6,753
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$
|
20,037
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$
|
20,037
|
|
Royalty
revenue
|
|
|
1,956
|
|
|
1,535
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|
5,059
|
|
|
4,770
|
|
|
Total
revenues
|
|
8,709
|
|
|
8,288
|
|
|
25,096
|
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|
24,807
|
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|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
8,026
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|
|
10,159
|
|
|
21,968
|
|
|
34,829
|
|
General and
administrative
|
|
5,711
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|
3,147
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|
14,743
|
|
|
10,657
|
|
Intangible asset
amortization
|
|
377
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|
|
377
|
|
|
1,118
|
|
|
1,118
|
|
|
Total operating
expenses
|
|
14,114
|
|
|
13,683
|
|
|
37,829
|
|
|
46,604
|
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Loss from
operations
|
|
(5,405)
|
|
|
(5,395)
|
|
|
(12,733)
|
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|
(21,797)
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|
Other
income
|
|
25
|
|
|
69
|
|
|
101
|
|
|
502
|
Loss before tax
benefit
|
|
(5,380)
|
|
|
(5,326)
|
|
|
(12,632)
|
|
|
(21,295)
|
|
Tax
benefit
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Net loss
|
$
|
(5,380)
|
|
$
|
(5,326)
|
|
$
|
(12,632)
|
|
$
|
(21,295)
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Net loss per
share:
|
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|
|
|
|
|
|
|
|
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|
|
Basic
|
$
|
(0.17)
|
|
$
|
(0.19)
|
|
$
|
(0.43)
|
|
$
|
(0.75)
|
|
Diluted
|
$
|
(0.17)
|
|
$
|
(0.19)
|
|
$
|
(0.43)
|
|
$
|
(0.75)
|
|
|
|
|
|
|
|
|
|
|
|
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|
Shares used in
calculations of net loss
|
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per share:
|
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|
|
|
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|
|
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|
Basic
|
|
31,332,993
|
|
|
28,226,743
|
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|
29,363,162
|
|
|
28,226,743
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|
Diluted
|
|
31,332,993
|
|
|
28,226,743
|
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29,363,162
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|
28,226,743
|
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|
|
|
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|
VANDA
PHARMACEUTICALS INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
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|
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($ in
thousands)
|
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|
|
|
September 30,
2013
|
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December 31,
2012
|
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ASSETS
|
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Current
assets:
|
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Cash and cash
equivalents
|
|
|
$
|
142,172
|
|
$
|
88,772
|
|
|
Marketable
securities
|
|
|
|
-
|
|
|
31,631
|
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|
Accounts
receivable
|
|
|
|
1,956
|
|
|
1,168
|
|
|
Prepaid expenses and
other current assets
|
2,412
|
|
|
3,967
|
|
|
Restricted cash,
current
|
|
|
|
530
|
|
|
430
|
|
|
|
Total current
assets
|
|
|
|
147,070
|
|
|
125,968
|
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Property and
equipment, net
|
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|
|
2,106
|
|
|
2,348
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|
Intangible asset,
net
|
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|
|
5,414
|
|
|
6,532
|
|
Restricted cash,
non-current
|
|
|
|
500
|
|
|
600
|
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|
|
Total
assets
|
|
|
$
|
155,090
|
|
$
|
135,448
|
|
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LIABILITIES AND
STOCKHOLDERS' EQUITY
|
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Current
liabilities:
|
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|
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Accounts
payable
|
|
|
$
|
369
|
|
$
|
287
|
|
|
Accrued
liabilities
|
|
|
|
4,532
|
|
|
5,187
|
|
|
Deferred rent,
current
|
|
|
|
215
|
|
|
-
|
|
|
Deferred revenues,
current
|
|
|
|
26,789
|
|
|
26,789
|
|
|
|
Total current
liabilities
|
|
|
|
31,905
|
|
|
32,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent,
non-current
|
|
|
|
2,945
|
|
|
3,005
|
|
|
Deferred revenues,
non-current
|
|
|
70,238
|
|
|
90,275
|
|
|
|
Total
liabilities
|
|
|
|
105,088
|
|
|
125,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
33
|
|
|
28
|
|
|
Additional paid-in
capital
|
|
|
|
353,708
|
|
|
300,974
|
|
|
Accumulated other
comprehensive income
|
|
-
|
|
|
10
|
|
|
Accumulated
deficit
|
|
(303,739)
|
|
|
(291,107)
|
|
|
|
Total stockholders'
equity
|
|
50,002
|
|
|
9,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
155,090
|
|
$
|
135,448
|
|
|
|
|
|
|
|
|
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|
|
INVESTOR CONTACT:
Chad Rubin
Vice President
The Trout Group
(646) 378-2947
crubin@troutgroup.com
SOURCE Vanda Pharmaceuticals Inc.