Vanda Pharmaceuticals Reports Second Quarter 2013 Results

Jul 31, 2013, 06:55 ET from Vanda Pharmaceuticals Inc.

WASHINGTON, July 31, 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 second quarter ended June 30, 2013.

Key Highlights:

  • On July 29, 2013 Vanda announced that the U.S. Food and Drug Administration (FDA) accepted the filing 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 determined the action target date under Prescription Drug User Fee Act (PDUFA-V) to be January 31, 2014.  The FDA has also tentatively scheduled an advisory committee meeting to discuss the tasimelteon application on November 14, 2013.
  • Full year 2013 decrease in cash, cash equivalents and marketable securities (Cash) is expected to be between $45.0 and $50.0 million, consistent with prior guidance.
  • Vanda recorded second quarter 2013 revenue of $8.3 million including royalties of $1.6 millionFanapt® prescriptions, as reported by IMS, were approximately 41,400 for the second quarter of 2013.  This represents a 11% increase over second quarter 2012 prescriptions and a 7% increase over first quarter 2013 prescriptions.

SECOND QUARTER 2013 REPORTED RESULTS

Total revenues for the second quarter of 2013 were $8.3 million, compared to $8.4 million for the same period in 2012.  Second quarter 2013 revenues included $1.6 million in Fanapt® royalties received from Novartis as compared to royalties of $1.7 million for the second quarter of 2012.

Total operating expenses for the second quarter of 2013 were $11.4 million, compared to $16.5 million for the second quarter of 2012.  The primary driver of the lower expenses in the second quarter of 2013 was the completion of the tasimelteon Non-24 and Major Depressive Disorder efficacy studies.

Vanda recorded a net loss of $3.1 million for the second quarter of 2013, compared to a net loss of $8.0 million for the same period in 2012.  Diluted net loss per share for the second quarter of 2013 was $0.11, compared to a diluted net loss per share of $0.28 for the second quarter of 2012.

Cash, cash equivalents and marketable securities (Cash) decreased by $7.3 million in the second quarter of 2013, compared to decreases of $12.5 million in the second quarter of 2012 and $9.5 million in the first quarter of 2013.  Vanda's Cash as of June 30, 2013 totaled $103.6 million.  

Year to Date June 30, 2013 Key Financial Figures1

 

Six Months Ended

June 30

June 30

($ in thousands, except per share amounts)

2013

2012

  Change ($)

Change (%)

Total revenues

$         16,387

$         16,519

$             (132)

(1%)

Research & development  expenses

13,942

24,670

(10,728)

(43%)

General & administrative expenses

9,032

7,510

1,522

20%

Non-cash stock-based compensation2

1,782

2,595

(813)

(31%)

Net loss

(7,252)

(15,969)

8,717

55%

Diluted net loss per share

$            (0.26)

$            (0.57)

$             0.31

54%

 

Second Quarter 2013 Key Financial Figures1

 

Three Months Ended

June 30

March 31

($ in thousands, except per share amounts)

2013

2013

  Change ($)

Change (%)

Total revenues

$           8,319

$           8,068

$              251

3%

Research & development  expenses

5,982

7,960

(1,978)

(25%)

General & administrative expenses

5,074

3,958

1,116

28%

Non-cash stock-based compensation2

830

952

(122)

(13%)

Net loss

(3,079)

(4,173)

1,094

26%

Diluted net loss per share

$            (0.11)

$            (0.15)

$             0.04

27%

 

Select Cash Flow Data1

Six Months Ended

June 30

June 30

($ in thousands)

2013

2012

Net cash provided by (used in)

Operating activities

$        (17,168)

$        (20,904)

Investing activities

31,428

27,369

Financing activities

601

-

 

Select Balance Sheet Data1

June 30

March 31

June 30

($ in thousands)

2013

2013

2012

Total cash and marketable securities

$       103,633

$       110,932

$       144,701

(1) Unaudited

(2) Non-cash stock-based compensation is allocated to both Research & development and General & administrative expenses

 

OPERATIONAL HIGHLIGHTS  

On July 29, 2013, Vanda announced that the FDA accepted the filing 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 determined the action target date under Prescription Drug User Fee Act (PDUFA-V), to be January 31, 2014.  The FDA has also tentatively scheduled an advisory committee meeting to discuss the tasimelteon application on November 14, 2013.

Vanda continues to expand its activities in support of Non-24 disease awareness and education with professional, advocacy and patient groups.  In June 2013, Vanda presented data from the SET and RESET studies at the 27th Annual Meeting of the Associated Professional Sleep Societies, SLEEP 2013, and the 95th Annual Endocrine Society Meeting, ENDO 2013.   

Vanda recorded second quarter 2013 revenue of $8.3 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 $1.6 million.  Fanapt® prescriptions, as reported by IMS, were approximately 41,400 for the second quarter of 2013.  This represents a 11% increase over second quarter 2012 prescriptions and a 7% increase versus first quarter 2013 prescriptions.  

AFFIRMS 2013 FINANCIAL GUIDANCE

Consistent with prior guidance, 2013 expenses are expected to reflect lower research and development spending as compared to 2012 and an increase in commercial spending.

  • Full year 2013 decrease in Cash is expected to be between $45.0 and $50.0 million, compared to $47.5 million for 2012.
  • Total 2013 operating expenses are expected to be between $57.0 and $62.0 million.  This includes Fanapt® intangible asset amortization of $1.5 million and $4.0 to $6.0 million of non-cash stock based compensation.   Total 2012 operating expenses were $61.0 million.
  • 2013 operating expense guidance includes $3.5 million in milestone payments due upon the acceptance by the FDA of a tasimelteon NDA submission and assumes $4.0 to $5.0 million in NDA filing-related expenses.

CONFERENCE CALL

Vanda has scheduled a conference call for today, Wednesday, July 31, 2013, at 10:00 AM ET.  During the call, Vanda's management will discuss the second quarter 2013 financial results and other corporate activities.  Investors can call 1-888-895-5479 (domestic) and 1-847-619-6250 (international) and use passcode 35347357.  A replay of the call will be available beginning Wednesday, July 31, 2013 at 12:00 PM ET and will be accessible until Wednesday, August 7, 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 35347357.

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.  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. 

 

VANDA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended

Six Months Ended

June 30

June 30

June 30

June 30

($ in thousands, except per share amounts)

2013

2012

2013

2012

Revenues:

Licensing agreement

$

6,678

$

6,678

$

13,284

$

13,284

Royalty revenue

1,641

1,700

3,103

3,235

Total revenues

8,319

8,378

16,387

16,519

Operating expenses:

Research and development

5,982

12,490

13,942

24,670

General and administrative

5,074

3,601

9,032

7,510

Intangible asset amortization

372

372

741

741

Total operating expenses

11,428

16,463

23,715

32,921

Loss from operations

(3,109)

(8,085)

(7,328)

(16,402)

Other income

30

78

76

433

Loss before tax benefit

(3,079)

(8,007)

(7,252)

(15,969)

Tax benefit

-

-

-

-

Net loss

$

(3,079)

$

(8,007)

$

(7,252)

$

(15,969)

Net loss per share:

Basic

$

(0.11)

$

(0.28)

$

(0.26)

$

(0.57)

Diluted

$

(0.11)

$

(0.28)

$

(0.26)

$

(0.57)

Shares used in calculations of net loss

per share:

Basic 

28,377,254

28,226,743

28,361,340

28,226,743

Diluted

28,377,254

28,226,743

28,361,340

28,226,743

 

 

VANDA PHARMACEUTICALS INC.

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

($ in thousands)

June 30, 2013

December 31, 2012

ASSETS

Current assets:

Cash and cash equivalents

$

103,633

$

88,772

Marketable securities

-

31,631

Accounts receivable

1,641

1,168

Prepaid expenses and other current assets

2,651

3,967

Restricted cash, current

430

430

Total current assets

108,355

125,968

Property and equipment, net

2,208

2,348

Intangible asset, net

5,791

6,532

Restricted cash, non-current

600

600

Total assets

$

116,954

$

135,448

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

1,167

$

287

Accrued liabilities

3,770

5,187

Deferred rent, current

209

-

Deferred revenues, current

26,789

26,789

Total current liabilities

31,935

32,263

Deferred rent, non-current

3,002

3,005

Deferred revenues, non-current

76,991

90,275

Total liabilities

111,928

125,543

Stockholders' equity:

Common stock

28

28

Additional paid-in capital

303,357

300,974

Accumulated other comprehensive income

-

10

Accumulated deficit

(298,359)

(291,107)

Total stockholders' equity

5,026

9,905

Total liabilities and stockholders' equity

$

116,954

$

135,448

 

COMPANY CONTACT:   Jim Kelly  Senior Vice President & Chief Financial Officer  Vanda Pharmaceuticals Inc.  (202) 734-3428  jim.kelly@vandapharma.com

SOURCE Vanda Pharmaceuticals Inc.



RELATED LINKS

http://www.vandapharma.com