SAN DIEGO and WASHINGTON, July 3, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP announce that a shareholder of Vanda Pharmaceuticals, Inc. (NasdaqGM: VNDA) securities has filed a complaint in the U.S. District Court for the District of Columbia against the company and certain of its officers and directors. The complaint alleges that defendants violated the Securities Exchange Act of 1934 between December 18, 2012 and June 18, 2013 (the "Class Period").
Vanda is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. The company's product portfolio includes tasimelteon, which is currently in clinical development for "Non-24," a neurological sleep disorder that affects proportionately more totally blind individuals than sighted.
Vanda Is Accused of Making False and Misleading Statements Regarding Results of Its Clinical Trial for Tasimelteon
Throughout the Class Period, defendants made false and/or misleading statements and failed to disclose material adverse facts about the results of the clinical trial for tasimelteon. Specifically, defendants made false and/or misleading statements and failed to disclose that: (i) the company made multiple changes in the primary endpoint over the course of the trials; (ii) the company eliminated nighttime total sleep as the primary endpoint in its studies as there was no discernible difference in efficacy and safety in nighttime total sleep between those patients deemed to have Non-24 and those patients with a normal sleep cycle; and (iii) the company made a change in a new primary endpoint just one month before study results were published that has allegedly never been used before in sleep-drug clinical trials, nor was it endorsed by the U.S. Federal Drug Administration.
Vanda Stock Price Falls Dramatically on Question of Validity of Clinic Trial for Tasimelteon
On June 19, 2013, The Street published an article casting doubt on the quality and efficacy of Vanda's clinical trial procedure and test data for tasimelteon. In addition to the issues listed above, the article states that Vanda was forced to cut patient enrollment in the clinical trials in half because an insufficient number of totally blind patients with Non-24 could not be identified, and that ultimately less than 5% of the patients enrolled in the trials suffered from Non-24 according to the "textbook definition" of the disease.
On this news, Vanda shares declined $2.41 per share or more than 22%, to close at $8.51 per share on June 19, 2013.
If you invested in Vanda and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
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SOURCE Robbins Arroyo LLP