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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2013	Oct. 31, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	VNDA
Entity Registrant Name	Vanda Pharmaceuticals Inc.
Entity Central Index Key	0001347178
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,190,106

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 142,172	$ 88,772
Marketable securities		31,631
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
Property and equipment, net	2,106	2,348
Intangible asset, net	5,414	6,532
Restricted cash, non-current	500	600
Total assets	155,090	135,448
Current liabilities:
Accounts payable	369	287
Accrued liabilities	4,532	5,187
Deferred rent, current	215
Deferred revenue, current	26,789	26,789
Total current liabilities	31,905	32,263
Deferred rent, non-current	2,945	3,005
Deferred revenue, non-current	70,238	90,275
Total liabilities	105,088	125,543
Commitments and contingencies (Notes 10 and 13)
Stockholders' equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized and none issued and outstanding
Common stock, $0.001 par value; 150,000,000 shares authorized; 33,190,106 and 28,241,743 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	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

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2013	Dec. 31, 2012
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	33,190,106	28,241,743
Common stock, shares outstanding	33,190,106	28,241,743

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:
Licensing agreement	$ 6,753	$ 6,753	$ 20,037	$ 20,037
Royalty revenue	1,956	1,535	5,059	4,770
Total revenues	8,709	8,288	25,096	24,807
Operating expenses:
Research and development	8,026	10,159	21,968	34,829
General and administrative	5,711	3,147	14,743	10,657
Intangible asset amortization	377	377	1,118	1,118
Total operating expenses	14,114	13,683	37,829	46,604
Loss from operations	(5,405)	(5,395)	(12,733)	(21,797)
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)
Net loss per share:
Basic	$ (0.17)	$ (0.19)	$ (0.43)	$ (0.75)
Diluted	$ (0.17)	$ (0.19)	$ (0.43)	$ (0.75)
Shares used in calculations of net loss per share:
Basic	31,332,993	28,226,743	29,363,162	28,226,743
Diluted	31,332,993	28,226,743	29,363,162	28,226,743

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net loss	$ (5,380)	$ (5,326)	$ (12,632)	$ (21,295)
Other comprehensive income (loss):
Change in net unrealized gain (loss) on marketable securities		18	(10)	2
Tax provision on other comprehensive income (loss)
Other comprehensive income (loss), net of tax		18	(10)	2
Comprehensive loss	$ (5,380)	$ (5,308)	$ (12,642)	$ (21,293)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-Number 210
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-Paragraph 19
-Article 5

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-Section 04
-Paragraph 20
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+ Details

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2013 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2012		28,241,743
Beginning balance at Dec. 31, 2012	$ 9,905	$ 28	$ 300,974	$ 10	$ (291,107)
Net proceeds from public offering of common stock (in shares)	4,680,000	4,680,000
Net proceeds from public offering of common stock	$ 48,552	$ 5	48,547
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		317,883
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	$ 1,062		1,062
Shares withheld upon settlement of restricted stock units (in shares)	(49,520)	(49,520)
Shares withheld upon settlement of restricted stock units	$ (196)		(196)
Employee and non-employee stock-based compensation expense	3,321		3,321
Net loss	(12,632)				(12,632)
Other comprehensive loss, net of tax	(10)			$ (10)
Ending balance (in shares) at Sep. 30, 2013		33,190,106
Ending balance at Sep. 30, 2013	$ 50,002	$ 33	$ 353,708		$ (303,739)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities
Net loss	$ (12,632)	$ (21,295)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property and equipment	321	528
Employee and non-employee stock-based compensation expense	3,321	3,171
Amortization of discounts and premiums on marketable securities	121	416
Amortization of intangible asset	1,118	1,118
Landlord contributions for tenant improvements		1,826
Changes in assets and liabilities:
Accounts receivable	(788)	83
Prepaid expenses and other assets	1,555	(401)
Accounts payable	82	94
Accrued liabilities	(655)	3,372
Other liabilities	155	57
Deferred revenue	(20,037)	(20,037)
Net cash used in operating activities	(27,439)	(31,068)
Cash flows from investing activities
Purchases of property and equipment	(79)	(2,010)
Purchases of marketable securities		(49,967)
Proceeds from sales of marketable securities		2,497
Maturities of marketable securities	31,500	97,140
Net cash provided by investing activities	31,421	47,660
Cash flows from financing activities
Net proceeds from public offering of common stock	48,552
Tax obligations paid in connection with settlement of restricted stock units	(196)
Proceeds from exercise of stock options	1,062
Net cash provided by financing activities	49,418
Net increase in cash and cash equivalents	53,400	16,592
Cash and cash equivalents
Beginning of period	88,772	87,923
End of period	$ 142,172	$ 104,515

Business Organization and Presentation

9 Months Ended

Sep. 30, 2013

Business Organization and Presentation

1. Business Organization and Presentation

Business organization

Vanda Pharmaceuticals Inc. (Vanda or the Company) is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. Vanda commenced its operations in 2003. Vanda’s product portfolio includes tasimelteon, a product for the treatment of circadian rhythm sleep disorders, which is currently in clinical development for Non-24-Hour Disorder (Non-24) and for which a New Drug Application (NDA) is under review by the U.S. Food and Drug Administration (FDA), Fanapt^®, a product for the treatment of schizophrenia, the oral formulation of which is currently being marketed and sold in the U.S. by Novartis Pharma AG (Novartis), and VLY-686, a small molecule neurokinin-1 receptor (NK-1R) antagonist.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2012 included in the Company’s annual report on Form 10-K. The financial information as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The condensed consolidated balance sheet data as of December 31, 2012 was derived from audited financial statements but does not include all disclosures required by GAAP.

The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The financial information included herein should be read in conjunction with the consolidated financial statements and notes in the Company’s annual report on Form 10-K for the year ended December 31, 2012.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent accounting pronouncements

On January 1, 2013, Vanda adopted changes issued by the Financial Accounting Standards Board (FASB) for the reporting of amounts reclassified out of accumulated other comprehensive income. The changes require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. Adoption of these changes did not have a material impact on the condensed consolidated financial statements.

In July 2013, the FASB issued Accounting Standard Update (ASU) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. The Company does not expect that the new standard will have a material impact on the condensed consolidated financial statements.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

Earnings per Share

9 Months Ended

Sep. 30, 2013

Earnings per Share

2. Earnings per Share

Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying Restricted Stock Units (RSUs), but only to the extent that their inclusion is dilutive.

The following table presents the calculation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2013 and 2012:


	Three Months Ended						Nine Months Ended
(in thousands, except for share and per share amounts)	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
Numerator:
Net loss	$	(5,380	)	$	(5,326	)	$	(12,632	)	$	(21,295	)

Denominator:
Weighted average shares of common stock outstanding, basic		31,332,993			28,226,743			29,363,162			28,226,743
Stock options and restricted stock units related to the issuance of common stock		—			—			—			—

Weighted average shares of common stock outstanding, diluted		31,332,993			28,226,743			29,363,162			28,226,743

Net loss per share:
Basic	$	(0.17	)	$	(0.19	)	$	(0.43	)	$	(0.75	)

Diluted	$	(0.17	)	$	(0.19	)	$	(0.43	)	$	(0.75	)

Anti-dilutive securities excluded from calculations of diluted net loss per share:
Stock options and restricted stock units		3,801,651			5,150,778			4,556,838			5,184,757

The Company incurred net losses for the three and nine months ended September 30, 2013 and 2012 causing inclusion of any potentially dilutive securities to have an anti-dilutive effect, resulting in dilutive loss per share and basic loss per share attributable to common stockholders being equivalent.

Marketable Securities

9 Months Ended

Sep. 30, 2013

Marketable Securities

3. Marketable Securities

The Company did not hold any available-for-sale marketable securities as of September 30, 2013.

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2012:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	14,439	$	3	$	—	$	14,442
Corporate debt		17,182		7		—		17,189

	$	31,621	$	10	$	—	$	31,631

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Measurements

4. Fair Value Measurements

Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

•

Level 1 — defined as observable inputs such as quoted prices in active markets

•

Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable

•

Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions

The Company did not hold any marketable securities as of September 30, 2013. Marketable securities classified in Level 1 and Level 2 at December 31, 2012 consist of available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of investments classified in Level 2 also is determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities include certificates of deposit, commercial paper and corporate notes that use as their basis readily observable market parameters.

As of September 30, 2013, the Company did not hold any assets that are required to be measured at fair value on a recurring basis.

As of December 31, 2012, the Company held certain assets that are required to be measured at fair value on a recurring basis, as follows:


	Fair Value Measurements at Reporting Date Using
(in thousands)	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-sale securities	$	31,631	$	14,442	$	17,189	$	—

The Company also has financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash and cash equivalents, accounts receivable, restricted cash, accounts payable and accrued liabilities, the carrying value of which materially approximate their fair values.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2013

Prepaid Expenses and Other Current Assets

5. Prepaid Expenses and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets as of September 30, 2013 and December 31, 2012:


(in thousands)	September 30, 2013		December 31, 2012
Prepaid insurance	$	303	$	155
Other prepaid expenses and vendor advances		2,099		3,479
Inventory		—		57
Accrued interest income		10		276

Total prepaid expenses and other current assets	$	2,412	$	3,967

Intangible Asset

9 Months Ended

Sep. 30, 2013

Intangible Asset

6. Intangible Asset

The following is a summary of the Company’s intangible asset as of September 30, 2013:


			September 30, 2013
(in thousands)	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Fanapt^®		8	$	12,000	$	6,586	$	5,414

The following is a summary of the Company’s intangible asset as of December 31, 2012:


			December 31, 2012
(in thousands)	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Fanapt^®		8	$	12,000	$	5,468	$	6,532

In May 2009, the Company announced that the FDA had approved the New Drug Application (NDA) for Fanapt^®. As a result of this approval, the Company met a milestone under its original sublicense agreement with Novartis which required the Company to make a license payment of $12.0 million to Novartis. The $12.0 million is being amortized on a straight-line basis over the remaining life of the U.S. patent for Fanapt^®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that provides patent protection for drug compounds for a period of five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt^® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt^® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent; if, however, the pediatric extension is not granted, the intangible asset will be amortized over a shorter period.

The intangible asset is being amortized over its estimated useful economic life using the straight-line method. Amortization expense was $0.4 million for the three months ended September 30, 2013 and 2012 and $1.1 million for the nine months ended September 30, 2013 and 2012. The Company capitalized and began amortizing the asset immediately following the FDA approval of the NDA for Fanapt^®.

The following is a summary of the future intangible asset amortization schedule as of September 30, 2013:


(in thousands)	Total		Remainder of 2013		2014		2015		2016		2017
Intangible asset	$	5,414	$	377	$	1,495	$	1,495	$	1,495	$	552

Accrued Liabilities

9 Months Ended

Sep. 30, 2013

Accrued Liabilities

7. Accrued Liabilities

The following is a summary of the Company’s accrued liabilities as of September 30, 2013 and December 31, 2012:


(in thousands)	September 30, 2013		December 31, 2012
Accrued research and development expenses	$	2,082	$	3,900
Accrued consulting and other professional fees		1,060		386
Compensation and employee benefits		1,304		127
Accrued lease exit liability (refer to note 10)		59		453
Other accrued expenses		27		321

Total accrued liabilities	$	4,532	$	5,187

Deferred Revenue

9 Months Ended

Sep. 30, 2013

Deferred Revenue

8. Deferred Revenue

The following is a summary of changes in total deferred revenue for the nine months ended September 30, 2013:


(in thousands)	Balance at Beginning of Period		Reduction from Licensing Revenue Recognized		Balance at End of Period
Nine months ended September 30, 2013	$	117,064	$	20,037	$	97,027

The following is a summary of changes in total deferred revenue for the nine months ended September 30, 2012:


(in thousands)	Balance at Beginning of Period		Reduction from Licensing Revenue Recognized		Balance at End of Period
Nine months ended September 30, 2012	$	143,853	$	20,037	$	123,816

The Company entered into an amended and restated sublicense agreement with Novartis in October 2009, pursuant to which Novartis has the right to commercialize and develop Fanapt^® in the U.S. and Canada. Under the amended and restated sublicense agreement, the Company received an upfront payment of $200.0 million in December 2009. The Company and Novartis established a Joint Steering Committee (JSC) following the effective date of the amended and restated sublicense agreement. The Company concluded that the JSC constitutes a deliverable under the amended and restated sublicense agreement and that revenue related to the upfront payment will be recognized ratably over the term of the JSC; however, the delivery or performance has no term as the exact length of the JSC is undefined. As a result, the Company deems the performance period of the JSC to be the life of the U.S. patent of Fanapt^®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that provides patent protection for drug compounds for a period of five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt^® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt^® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent. Revenue related to the upfront payment will be recognized ratably from the date the amended and restated sublicense agreement became effective (November 2009) through the expected life of the U.S. patent for Fanapt^® (May 2017).

Income Taxes

9 Months Ended

Sep. 30, 2013

Income Taxes

9. Income Taxes

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The fact that the Company has historically generated net operating losses (NOLs) serves as strong evidence that it is more likely than not that deferred tax assets will not be realized in the future. Therefore, the Company has a full valuation allowance against all deferred tax assets as of September 30, 2013 and December 31, 2012. Changes in ownership may limit the amount of NOL carryforwards that can be utilized in the future to offset taxable income.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies

10. Commitments and Contingencies

Operating leases

The following is a summary of the minimum annual future payments under operating leases as of September 30, 2013:


	Cash payments due by period
(in thousands)	Total		Remainder of 2013		2014		2015		2016		2017		After 2017
Operating leases	$	11,007	$	316	$	1,052	$	1,079	$	1,106	$	1,133	$	6,321

The minimum annual future payments for operating leases consists of the lease for office space for the Company’s headquarters located in Washington, D.C., which expires in 2023.

In July 2011, the Company entered into an office lease with Square 54 Office Owner LLC (the Landlord) for its current headquarters, consisting of 21,400 square feet at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. (the Lease). Under the Lease, rent payments were abated for the first 12 months, and the Landlord will provide the Company with an allowance of $1.9 million for leasehold improvements. As of September 30, 2013, the Company had received the full allowance. Subject to the prior rights of other tenants in the building, the Company has the right to renew the Lease for five years following the expiration of its original term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The Lease may be terminated early by the Company or the Landlord upon certain conditions.

As a result of the Company’s relocation from its former headquarters office space in Rockville, Maryland to Washington, D.C., the Company provided notice in the fourth quarter of 2011 to the landlord that it was terminating the Rockville lease effective June 30, 2013. As a result, the Company recognized an expense of $0.7 million in the year ended December 31, 2011 related to a lease termination penalty, of which $0.6 million was included as research and development expense in the consolidated statement of operations for the year ended December 31, 2011 and $0.1 million was included as general and administrative expense in the consolidated statement of operations for the year ended December 31, 2011. In the first quarter 2012, the Company ceased using the Rockville, Maryland location and, as a result, recognized additional rent expense of $0.8 million, of which $0.6 million was included as research and development expense in the consolidated statement of operations for the year ended December 31, 2012 and $0.2 million was included as general and administrative expense in the consolidated statement of operations for the year ended December 31, 2012. The rent expense of $0.8 million for the year ended December 31, 2012, consisted of a lease exit liability of $1.3 million for the remaining lease payments net of the reversal of the deferred rent liability of $0.5 million related to the Rockville lease.

The following is a summary of the Company’s lease exit activity for the nine months ended September 30, 2013, the year ended December 31, 2012 and the year ended December 31, 2011:


(in thousands)	Balance at Beginning of Period		Costs Incurred and Charged to Expense			Costs Paid or Otherwise Settled		Balance at End of Period
Nine months ended September 30, 2013	$	453	$	(10	)	$	384	$	59
Year ended December 31, 2012		740		1,220			1,507		453
Year ended December 31, 2011		—		740			—		740

Rent expense under operating leases, including lease exit costs, was $0.3 million and $0.2 million for the three months ended September 30, 2013 and 2012, respectively. Rent expense under operating leases, including lease exit costs, was $0.8 million and $1.8 million for the nine months ended September 30, 2013 and 2012, respectively.

Consulting fees

The Company has engaged a regulatory consultant to assist the Company’s efforts to prepare, file and obtain FDA approval of an NDA for tasimelteon. As a result of the FDA acceptance of the NDA filing for tasimelteon for the treatment of Non-24, the Company made a milestone payment of $0.5 million to the regulatory consultant during the three months ended September 30, 2013. The payment was included as research and development expense in the consolidated statement of operations for the three and nine months ended September 30, 2013. Pursuant to the agreement and subject to certain conditions, the Company would be obligated to make a milestone payment of $2.0 million in the event the tasimelteon NDA is approved by the FDA. In addition to consulting fees and milestone payments, the Company is obligated to reimburse the consultant for ordinary and necessary business expenses incurred in connection with the engagement. The Company may terminate the engagement at any time upon prior notice; however, subject to certain conditions, the Company would remain obligated to make the milestone payment if the milestone is achieved following such termination.

Guarantees and indemnifications

The Company has entered into a number of standard intellectual property indemnification agreements in the ordinary course of its business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual from the date of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Since inception, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain conditions.

License agreements

The Company’s rights to develop and commercialize its products and product candidates are subject to the terms and conditions of licenses granted to the Company by other pharmaceutical companies.

Tasimelteon. In February 2004, the Company entered into a license agreement with Bristol-Myers Squibb (BMS) under which the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize tasimelteon. In partial consideration for the license, the Company paid BMS an initial license fee of $0.5 million. Pursuant to the license agreement, the Company would be obligated to make future milestone payments to BMS of up to $37.0 million in the aggregate. The Company made a milestone payment to BMS of $1.0 million under the license agreement in 2006 relating to the initiation of its first Phase III clinical trial for tasimelteon. The Company made a milestone payment of $3.0 million during the three months ended September 30, 2013 relating to the FDA acceptance of the NDA filing for tasimelteon in the treatment of Non-24. The payment was included as research and development expense in the consolidated statement of operations for the three and nine months ended September 30, 2013. The Company will incur milestone obligations of $8.0 million in the event that the tasimelteon NDA is approved by the FDA and $25.0 million in the event that sales of tasimelteon reach a certain agreed upon sales threshold. Additionally, the Company would be obligated to make royalty payments based on net sales of tasimelteon which, as a percentage of net sales, are in the low teens. The Company is also obligated under the license agreement to pay BMS a percentage of any sublicense fees, upfront payments and milestone and other payments (excluding royalties) that the Company receives from a third party in connection with any sublicensing arrangement, at a rate which is in the mid-twenties. The Company is obligated to use commercially reasonable efforts to develop and commercialize tasimelteon and to meet certain milestones in initiating and completing certain clinical work.

Under the license agreement, the Company was required to enter into a development and commercialization agreement with a third party for tasimelteon. If the Company had not entered into such an agreement with respect to certain major market countries by a certain deadline, then BMS would have had the option to develop and commercialize tasimelteon itself in those countries not covered by a development and commercialization agreement on certain pre-determined terms (the “BMS Option”). However, the license agreement was amended in April 2013 to add a process that would allow BMS, prior to such deadline, to waive such right to develop and commercialize tasimelteon in those countries not covered by a development and commercialization agreement. Subsequent to the execution of the April 2013 amendment, BMS provided the Company with formal written notice that it irrevocably waived the BMS Option to exercise the right to reacquire any or all rights to any product (as defined in the license agreement) containing tasimelteon, or to develop or commercialize any such product, in the countries not covered by a development and commercialization agreement.

Either party may terminate the tasimelteon license agreement under certain circumstances, including a material breach of the agreement by the other. In the event that BMS has not exercised its option to reacquire the rights to tasimelteon and the Company terminates the license, or if BMS terminates the license due to the Company’s breach, all rights licensed and developed by the Company under the license agreement will revert or otherwise be licensed back to BMS on an exclusive basis.

Fanapt^®. The Company acquired exclusive worldwide rights to patents and patent applications for Fanapt^® (iloperidone) in 2004 through a sublicense agreement with Novartis. A predecessor company of sanofi-aventis, Hoechst Marion Roussel, Inc. (HMRI), discovered Fanapt^® and completed early clinical work on the product. In 1996, following a review of its product portfolio, HMRI licensed its rights to the Fanapt^® patents and patent applications to Titan Pharmaceuticals, Inc. (Titan) on an exclusive basis. In 1997, soon after it had acquired its rights, Titan sublicensed its rights to Fanapt^® on an exclusive basis to Novartis. In June 2004, the Company acquired exclusive worldwide rights to these patents and patent applications, as well as certain Novartis patents and patent applications to develop and commercialize Fanapt^®, through a sublicense agreement with Novartis. In partial consideration for this sublicense, the Company paid Novartis an initial license fee of $0.5 million and was obligated to make future milestone payments to Novartis of less than $100.0 million in the aggregate (the majority of which were tied to sales milestones), as well as royalty payments to Novartis at a rate which, as a percentage of net sales, was in the mid-twenties. In November 2007, the Company met a milestone under the sublicense agreement relating to the acceptance of its filing of the NDA for Fanapt^® for the treatment of schizophrenia and made a milestone payment of $5.0 million to Novartis. As a result of the FDA’s approval of the NDA for Fanapt^® in May 2009, the Company met an additional milestone under the sublicense agreement, which required the Company to make a payment of $12.0 million to Novartis.

In October 2009, Vanda entered into an amended and restated sublicense agreement with Novartis, which amended and restated the June 2004 sublicense agreement. Pursuant to the amended and restated sublicense agreement, Novartis has exclusive commercialization rights to all formulations of Fanapt^® in the U.S. and Canada. Novartis began selling Fanapt^® in the U.S. during the first quarter of 2010. Novartis is responsible for the further clinical development activities in the U.S. and Canada, including the development of a long-acting injectable (or depot) formulation of Fanapt^®. In October 2012, Novartis informed Vanda that it had determined to cease the development of the long-acting injectable (or depot) formulation of Fanapt^®. Pursuant to the amended and restated sublicense agreement, Vanda received an upfront payment of $200.0 million and is eligible for additional payments totaling up to $265.0 million upon Novartis’ achievement of certain commercial and development milestones for Fanapt^® in the U.S. and Canada. Based on the current sales performance of Fanapt^® in the U.S. and the decision by Novartis to cease development of the long-acting injectable (or depot) formulation of Fanapt^®, Vanda expects that some or all of these commercial and development milestones will not be achieved by Novartis. Vanda also receives royalties, which, as a percentage of net sales, are in the low double-digits, on net sales of Fanapt^® in the U.S. and Canada. Vanda retains exclusive rights to Fanapt^® outside the U.S. and Canada and Vanda has exclusive rights to use any of Novartis’ data for Fanapt^® for developing and commercializing Fanapt^® outside the U.S. and Canada. At Novartis’ option, Vanda will enter into good faith discussions with Novartis relating to the co-commercialization of Fanapt^® outside of the U.S. and Canada or, alternatively, Novartis will receive a royalty on net sales of Fanapt^® outside of the U.S. and Canada. Novartis has chosen not to co-commercialize Fanapt^® with Vanda in Europe and certain other countries and will instead receive a royalty on net sales in those countries. These include, but are not limited to, the countries in the European Union as well as Switzerland, Norway, Liechtenstein and Iceland. Vanda has entered into agreements with the following partners for the commercialization of Fanapt^® in the countries set forth below:


Country		Partner
Mexico		Probiomed S.A. de C.V.
Israel		Megapharm Ltd.

In August 2012, the Israeli Ministry of Health granted market approval for Fanapt^® for the treatment of schizophrenia. In November 2012, Vanda was notified that Fanapt^® had been granted market approval in Argentina for the treatment of schizophrenia. In October 2013, the Mexican Federal Commission for Protection Against Sanitary Risks (COFEPRIS) granted market approval for Fanapt^® for the treatment of schizophrenia.

VLY-686. In April 2012, the Company entered into a license agreement with Eli Lilly and Company (Lilly) pursuant to which the Company acquired an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize an NK-1R antagonist, VLY-686, for all human indications. The patent describing VLY-686 as a new chemical entity expires in April 2023, except in the U.S., where it expires in June 2024 absent any applicable patent term adjustments.

Pursuant to the license agreement, the Company paid Lilly an initial license fee of $1.0 million and will be responsible for all development costs. The initial license fee was recognized as research and development expense in the consolidated statement of operations for the nine months ended September 30, 2012. Lilly is also eligible to receive additional payments based upon achievement of specified development and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits. These milestones include $4.0 million for pre-NDA approval milestones and up to $95.0 million for future regulatory approval and sales milestones. Vanda is obligated to use its commercially reasonable efforts to develop and commercialize VLY-686.

Either party may terminate the license agreement under certain circumstances, including a material breach of the license agreement by the other. In the event that Vanda terminates the license agreement, or if Lilly terminates due to Vanda’s breach or for certain other reasons set forth in the license agreement, all rights licensed and developed by Vanda under the license agreement will revert or otherwise be licensed back to Lilly on an exclusive basis, subject to payment by Lilly to the Company of a royalty on net sales of products that contain VLY-686.

Future milestone payments. No amounts were recorded as liabilities nor were any future contractual obligations relating to the license agreements included in the consolidated financial statements as of September 30, 2013 because the criteria for recording the future milestone payments have not yet been met. These criteria include the successful outcome of future clinical trials, regulatory filings, favorable FDA regulatory approvals, growth in product sales and other factors.

Research and development and marketing agreements

In the course of its business, the Company regularly enters into agreements with clinical organizations to provide services relating to clinical development and clinical manufacturing activities under fee service arrangements. The Company’s current agreements for clinical services may be terminated on no more than 60 days’ notice without incurring additional charges, other than charges for work completed but not paid for through the effective date of termination and other costs incurred by the Company’s contractors in closing out work in progress as of the effective date of termination.

Common Stock	9 Months Ended
Common Stock	Sep. 30, 2013
Common Stock	11. Common Stock In August 2013, the Company completed a public offering of 4,680,000 shares of common stock at a price to the public of $11.14 per share. Net cash proceeds from the public offering were $48.6 million, after deducting the underwriting discounts and commissions and offering expenses.

Employee Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Employee Stock-Based Compensation

12. Employee Stock-Based Compensation

Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company generally recognizes the expense over the award’s vesting period.

The fair value of stock options granted is amortized using the accelerated attribution method. The fair value of RSUs awarded is amortized using the straight-line method. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Total employee stock-based compensation expense related to stock-based awards for the three and nine months ended September 30, 2013 and 2012 was comprised of the following:


	Three Months Ended					Nine Months Ended
(in thousands)	September 30, 2013		September 30, 2012			September 30, 2013		September 30, 2012
Research and development	$	404	$	(110	)	$	1,164	$	1,003
General and administrative		1,091		686			2,063		2,152

Total employee stock-based compensation expense	$	1,495	$	576		$	3,227	$	3,155

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model that uses the assumptions noted in the following table. Expected volatility rates are based on the historical volatility of the Company’s publicly traded common stock and other factors. The weighted average expected term of stock options granted is based on the simplified method as the options meet the “plain vanilla” criteria required by authoritative guidance. Significant changes in the market prices of the Company’s common stock in recent years has made historical data less reliable for the purpose of estimating future vesting, exercise, and employment behavior. The simplified method provides a more reasonable approach for estimating the weighted average expected term for options granted in 2013 and 2012. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has not paid dividends to its stockholders since its inception (other than a dividend of preferred share purchase rights, which was declared in September 2008) and does not plan to pay dividends in the foreseeable future.

Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the nine months ended September 30, 2013 and 2012 were as follows:


	Nine Months Ended
	September 30, 2013			September 30, 2012
Expected dividend yield		—	%		—	%
Weighted average expected volatility		63	%		68	%
Weighted average expected term (years)		6.03			6.03
Weighted average risk-free rate		1.28	%		1.04	%
Weighted average fair value per share	$	3.98		$	2.71

As of September 30, 2013, the Company had two equity incentive plans, the Second Amended and Restated Management Equity Plan (the 2004 Plan) and the 2006 Equity Incentive Plan (the 2006 Plan). There were 670,744 shares subject to outstanding options granted under the 2004 Plan as of September 30, 2013, and no additional options will be granted under this plan. As of September 30, 2013, there were 8,995,930 shares of common stock reserved for issuance under the 2006 Plan, of which 5,332,870 shares were subject to outstanding options and RSUs granted to employees and non-employees and 2,213,524 shares remained available for future grant.

The Company has granted two types of options, option awards with service conditions (service option awards) and options with service and performance conditions (performance option awards). Service option awards are subject to terms and conditions established by the compensation committee of the board of directors. Service option awards have 10-year contractual terms and all service option awards granted prior to December 31, 2006, service option awards granted to new employees, and certain service option awards granted to existing employees vest and become exercisable on the first anniversary of the grant date with respect to the 25% of the shares subject to service option awards. The remaining 75% of the shares subject to the service option awards vest and become exercisable monthly in equal installments thereafter over three years. Certain service option awards granted to existing employees after December 31, 2006 vest and become exercisable monthly in equal installments over four years. The initial service option awards granted to directors upon their election vest and become exercisable in equal monthly installments over a period of four years, while the subsequent annual service option awards granted to directors vest and become exercisable in equal monthly installments over a period of one year. Certain service option awards to executives and directors provide for accelerated vesting if there is a change in control of the Company. Certain service option awards to employees and executives provide for accelerated vesting if the respective employee’s or executive’s service is terminated by the Company for any reason other than cause or permanent disability. There were 151,250 performance option awards outstanding with unrecognized stock-based compensation costs of $0.3 million at June 30, 2013. In July 2013, the performance option awards vested upon the acceptance by the FDA of the Company’s tasimelteon NDA (the Vesting Event). The Vesting Event for the performance option awards resulted in the recognition of additional stock-based compensation expense of $0.3 million for the three months and nine months ended September 30, 2013. As of September 30, 2013, there was $2.1 million of unrecognized compensation costs related to unvested service option awards expected to be recognized over a weighted average period of 1.6 years. None of the service option awards or performance option awards are classified as a liability as of September 30, 2013.

A summary of option activity for the 2004 Plan for the nine months ended September 30, 2013 follows:


(in thousands, except for share and per share amounts)	Number of Shares			Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2012		672,145		$	1.79		2.78	$	1,512
Expired		(115	)		4.73
Exercised		(1,286	)		3.67				7

Outstanding at September 30, 2013		670,744			1.79		2.03		6,144

Exercisable at September 30, 2013		670,744			1.79		2.03		6,144

A summary of option activity for the 2006 Plan for the nine months ended September 30, 2013 follows:


(in thousands, except for share and per share amounts)	Number of Shares			Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2012		4,865,487		$	10.83		7.15	$	634
Granted		356,000			6.88
Forfeited		(50,533	)		6.35
Expired		(258,238	)		10.68
Exercised		(164,161	)		6.44				836

Outstanding at September 30, 2013		4,748,555			10.75		6.65		16,292

Exercisable at September 30, 2013		3,343,423			12.97		5.80		8,561

Proceeds from the exercise of stock options amounted to $1.1 million for the nine months ended September 30, 2013.

An RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s stock on the date of grant. The Company has granted two types of RSUs, RSUs with service conditions (service RSUs) and RSUs with service and performance conditions (performance RSUs). The service RSUs vest in four equal annual installments provided that the employee remains employed with the Company. There were 48,750 performance RSUs outstanding with unrecognized stock-based compensation costs of $0.2 million at June 30, 2013. In July 2013, the performance RSUs vested upon the Vesting Event. The Vesting Event for the performance RSUs resulted in the recognition of additional stock-based compensation expense of $0.2 million for the three months and nine months ended September 30, 2013. As of September 30, 2013, there was $2.4 million of unrecognized compensation costs related to unvested service RSUs expected to be recognized over a weighted average period of 1.7 years. None of the service RSUs or performance RSUs are classified as a liability as of September 30, 2013.

A summary of RSU activity for the 2006 Plan for the nine months ended September 30, 2013 follows:


	Number of Shares Underlying RSUs			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2012		705,376		$	5.91
Granted		99,500			6.69
Forfeited		(19,375	)		6.66
Vested and unissued		(48,750	)		3.11
Vested		(152,436	)		7.86

Outstanding at September 30, 2013		584,315			5.74

The vesting date fair value for the 48,750 shares underlying performance RSUs that vested but are unissued during the nine months ended September 30, 2013 was $0.4 million. The vesting date fair value for the 152,436 shares underlying RSUs that vested during the nine months ended September 30, 2013 was $0.6 million. In order for certain employees to satisfy the minimum statutory employee tax withholding requirements related to the issuance of common stock underlying certain of RSUs that vested and settled during the nine months ended September 30, 2013, the Company withheld 49,520 shares of common stock and paid employee payroll withholding taxes of $0.2 million relating to the vesting and settlement of the RSUs.

Legal Matters

9 Months Ended

Sep. 30, 2013

Legal Matters

13. Legal Matters

On June 24, 2013, a securities class action complaint was filed in the United States District Court for the District of Columbia, naming the Company and certain of its officers as defendants. The complaint, filed on behalf of purported stockholders of the Company, seeks to assert violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, in connection with allegedly false and misleading statements and alleged omissions regarding the Company’s Phase III trial results for tasimelteon and other disclosures between December 18, 2012 and June 18, 2013 (the “Class Period”). The plaintiff seeks to represent a class comprised of purchasers of the Company’s common stock during the Class Period and seeks damages, costs and expenses and such other relief as determined by the Court. A similar complaint was filed on July 8, 2013.

The Company’s management believes that Vanda has meritorious defenses and intends to defend these lawsuits vigorously. The Company does not anticipate that this litigation will have a material adverse effect on its business, results of operations or financial condition. However, these lawsuits are subject to inherent uncertainties, the actual cost may be significant, and the Company may not prevail. The Company believes it is entitled to coverage under its relevant insurance policies, subject to a retention, but coverage could be denied or prove to be insufficient.

Business Organization and Presentation (Policies)	9 Months Ended
Business Organization and Presentation (Policies)	Sep. 30, 2013
Business organization	*Business organization* Vanda Pharmaceuticals Inc. (Vanda or the Company) is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. Vanda commenced its operations in 2003. Vanda’s product portfolio includes tasimelteon, a product for the treatment of circadian rhythm sleep disorders, which is currently in clinical development for Non-24-Hour Disorder (Non-24) and for which a New Drug Application (NDA) is under review by the U.S. Food and Drug Administration (FDA), Fanapt^®, a product for the treatment of schizophrenia, the oral formulation of which is currently being marketed and sold in the U.S. by Novartis Pharma AG (Novartis), and VLY-686, a small molecule neurokinin-1 receptor (NK-1R) antagonist.
Basis of presentation	*Basis of presentation* The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2012 included in the Company’s annual report on Form 10-K. The financial information as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The condensed consolidated balance sheet data as of December 31, 2012 was derived from audited financial statements but does not include all disclosures required by GAAP. The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The financial information included herein should be read in conjunction with the consolidated financial statements and notes in the Company’s annual report on Form 10-K for the year ended December 31, 2012.
Use of estimates	*Use of estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent accounting pronouncements	*Recent accounting pronouncements* On January 1, 2013, Vanda adopted changes issued by the Financial Accounting Standards Board (FASB) for the reporting of amounts reclassified out of accumulated other comprehensive income. The changes require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. Adoption of these changes did not have a material impact on the condensed consolidated financial statements. In July 2013, the FASB issued Accounting Standard Update (ASU) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. The Company does not expect that the new standard will have a material impact on the condensed consolidated financial statements.

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2013

Basic and Diluted Net Loss Per Share of Common Stock

The following table presents the calculation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2013 and 2012:


	Three Months Ended						Nine Months Ended
(in thousands, except for share and per share amounts)	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
Numerator:
Net loss	$	(5,380	)	$	(5,326	)	$	(12,632	)	$	(21,295	)

Denominator:
Weighted average shares of common stock outstanding, basic		31,332,993			28,226,743			29,363,162			28,226,743
Stock options and restricted stock units related to the issuance of common stock		—			—			—			—

Weighted average shares of common stock outstanding, diluted		31,332,993			28,226,743			29,363,162			28,226,743

Net loss per share:
Basic	$	(0.17	)	$	(0.19	)	$	(0.43	)	$	(0.75	)

Diluted	$	(0.17	)	$	(0.19	)	$	(0.43	)	$	(0.75	)

Anti-dilutive securities excluded from calculations of diluted net loss per share:
Stock options and restricted stock units		3,801,651			5,150,778			4,556,838			5,184,757

Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Available-for-Sale Marketable Securities

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2012:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	14,439	$	3	$	—	$	14,442
Corporate debt		17,182		7		—		17,189

	$	31,621	$	10	$	—	$	31,631

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Assets Measured at Fair Value on Recurring Basis

As of December 31, 2012, the Company held certain assets that are required to be measured at fair value on a recurring basis, as follows:


	Fair Value Measurements at Reporting Date Using
(in thousands)	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-sale securities	$	31,631	$	14,442	$	17,189	$	—

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Prepaid Expenses, and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets as of September 30, 2013 and December 31, 2012:


(in thousands)	September 30, 2013		December 31, 2012
Prepaid insurance	$	303	$	155
Other prepaid expenses and vendor advances		2,099		3,479
Inventory		—		57
Accrued interest income		10		276

Total prepaid expenses and other current assets	$	2,412	$	3,967

Intangible Asset (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Intangible Asset

The following is a summary of the Company’s intangible asset as of September 30, 2013:


			September 30, 2013
(in thousands)	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Fanapt^®		8	$	12,000	$	6,586	$	5,414

The following is a summary of the Company’s intangible asset as of December 31, 2012:


			December 31, 2012
(in thousands)	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Fanapt^®		8	$	12,000	$	5,468	$	6,532

Summary of Future Intangible Asset Amortization

The following is a summary of the future intangible asset amortization schedule as of September 30, 2013:


(in thousands)	Total		Remainder of 2013		2014		2015		2016		2017
Intangible asset	$	5,414	$	377	$	1,495	$	1,495	$	1,495	$	552

Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Accrued Liabilities

The following is a summary of the Company’s accrued liabilities as of September 30, 2013 and December 31, 2012:


(in thousands)	September 30, 2013		December 31, 2012
Accrued research and development expenses	$	2,082	$	3,900
Accrued consulting and other professional fees		1,060		386
Compensation and employee benefits		1,304		127
Accrued lease exit liability (refer to note 10)		59		453
Other accrued expenses		27		321

Total accrued liabilities	$	4,532	$	5,187

Deferred Revenue (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Changes in Total Deferred Revenue

The following is a summary of changes in total deferred revenue for the nine months ended September 30, 2013:


(in thousands)	Balance at Beginning of Period		Reduction from Licensing Revenue Recognized		Balance at End of Period
Nine months ended September 30, 2013	$	117,064	$	20,037	$	97,027

The following is a summary of changes in total deferred revenue for the nine months ended September 30, 2012:


(in thousands)	Balance at Beginning of Period		Reduction from Licensing Revenue Recognized		Balance at End of Period
Nine months ended September 30, 2012	$	143,853	$	20,037	$	123,816

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Minimum Annual Future Payments under Operating Leases

The following is a summary of the minimum annual future payments under operating leases as of September 30, 2013:


	Cash payments due by period
(in thousands)	Total		Remainder of 2013		2014		2015		2016		2017		After 2017
Operating leases	$	11,007	$	316	$	1,052	$	1,079	$	1,106	$	1,133	$	6,321

Summary of Lease Exit Activity

The following is a summary of the Company’s lease exit activity for the nine months ended September 30, 2013, the year ended December 31, 2012 and the year ended December 31, 2011:


(in thousands)	Balance at Beginning of Period		Costs Incurred and Charged to Expense			Costs Paid or Otherwise Settled		Balance at End of Period
Nine months ended September 30, 2013	$	453	$	(10	)	$	384	$	59
Year ended December 31, 2012		740		1,220			1,507		453
Year ended December 31, 2011		—		740			—		740

Employee Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Total Employee Stock-Based Compensation Expense

Total employee stock-based compensation expense related to stock-based awards for the three and nine months ended September 30, 2013 and 2012 was comprised of the following:


	Three Months Ended					Nine Months Ended
(in thousands)	September 30, 2013		September 30, 2012			September 30, 2013		September 30, 2012
Research and development	$	404	$	(110	)	$	1,164	$	1,003
General and administrative		1,091		686			2,063		2,152

Total employee stock-based compensation expense	$	1,495	$	576		$	3,227	$	3,155

Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted

Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the nine months ended September 30, 2013 and 2012 were as follows:


	Nine Months Ended
	September 30, 2013			September 30, 2012
Expected dividend yield		—	%		—	%
Weighted average expected volatility		63	%		68	%
Weighted average expected term (years)		6.03			6.03
Weighted average risk-free rate		1.28	%		1.04	%
Weighted average fair value per share	$	3.98		$	2.71

Summary of RSU Activity for 2006 Plan

A summary of RSU activity for the 2006 Plan for the nine months ended September 30, 2013 follows:


	Number of Shares Underlying RSUs			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2012		705,376		$	5.91
Granted		99,500			6.69
Forfeited		(19,375	)		6.66
Vested and unissued		(48,750	)		3.11
Vested		(152,436	)		7.86

Outstanding at September 30, 2013		584,315			5.74

2004 Plan

Summary of Option Activity Plan

A summary of option activity for the 2004 Plan for the nine months ended September 30, 2013 follows:


(in thousands, except for share and per share amounts)	Number of Shares			Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2012		672,145		$	1.79		2.78	$	1,512
Expired		(115	)		4.73
Exercised		(1,286	)		3.67				7

Outstanding at September 30, 2013		670,744			1.79		2.03		6,144

Exercisable at September 30, 2013		670,744			1.79		2.03		6,144

2006 Plan

Summary of Option Activity Plan

A summary of option activity for the 2006 Plan for the nine months ended September 30, 2013 follows:


(in thousands, except for share and per share amounts)	Number of Shares			Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2012		4,865,487		$	10.83		7.15	$	634
Granted		356,000			6.88
Forfeited		(50,533	)		6.35
Expired		(258,238	)		10.68
Exercised		(164,161	)		6.44				836

Outstanding at September 30, 2013		4,748,555			10.75		6.65		16,292

Exercisable at September 30, 2013		3,343,423			12.97		5.80		8,561

Basic and Diluted Net Loss Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:
Net loss	$ (5,380)	$ (5,326)	$ (12,632)	$ (21,295)
Denominator:
Weighted average shares of common stock outstanding, basic	31,332,993	28,226,743	29,363,162	28,226,743
Stock options and restricted stock units related to the issuance of common stock
Weighted average shares of common stock outstanding, diluted	31,332,993	28,226,743	29,363,162	28,226,743
Net loss per share:
Basic	$ (0.17)	$ (0.19)	$ (0.43)	$ (0.75)
Diluted	$ (0.17)	$ (0.19)	$ (0.43)	$ (0.75)
Anti-dilutive securities excluded from calculations of diluted net loss per share:
Stock options and restricted stock units	3,801,651	5,150,778	4,556,838	5,184,757

Summary of Available-For-Sale Marketable Securities (Detail) $ in Thousands	Dec. 31, 2012 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 31,621
Gross Unrealized Gains	10
Gross Unrealized Losses
Fair Market Value	31,631
U.S. Treasury and government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,439
Gross Unrealized Gains	3
Gross Unrealized Losses
Fair Market Value	14,442
Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	17,182
Gross Unrealized Gains	7
Gross Unrealized Losses
Fair Market Value	$ 17,189

Assets Measured at Fair Value on Recurring Basis (Detail) $ in Thousands	Dec. 31, 2012 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 31,631
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	14,442
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 17,189

Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Prepaid Expenses And Other Current Assets [Line Items]
Prepaid insurance	$ 303	$ 155
Other prepaid expenses and vendor advances	2,099	3,479
Inventory		57
Accrued interest income	10	276
Total prepaid expenses and other current assets	$ 2,412	$ 3,967

Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (Years)	8 years	8 years
Gross Carrying Amount	$ 12,000	$ 12,000
Accumulated Amortization	6,586	5,468
Net Carrying Amount	$ 5,414	$ 6,532

Intangible Asset - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2009
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible asset	$ 377	$ 377	$ 1,118	$ 1,118
Fanapt
Finite-Lived Intangible Assets [Line Items]
Payment for original sublicense agreement					$ 12,000

Schedule of Future Intangible Asset Amortization (Detail) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Schedule Of Estimated Future Amortization Expense [Line Items]
Net Carrying Amount	$ 5,414	$ 6,532
2013	377
2014	1,495
2015	1,495
2016	1,495
2017	$ 552

Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Accrued Liabilities [Line Items]
Accrued research and development expenses	$ 2,082	$ 3,900
Accrued consulting and other professional fees	1,060	386
Compensation and employee benefits	1,304	127
Accrued lease exit liability (refer to note 10)	59	453	$ 740
Other accrued expenses	27	321
Total accrued liabilities	$ 4,532	$ 5,187

Summary of Changes in Total Deferred Revenue (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Deferred Revenue Arrangement [Line Items]
Balance at Beginning of Period	$ 117,064	$ 143,853
Reduction from Licensing Revenue Recognized	20,037	20,037
Balance at End of Period	$ 97,027	$ 123,816

Deferred Revenue - Additional Information (Detail) $ in Millions	Dec. 31, 2009 USD ($)
Fanapt
Deferred Revenue Arrangement [Line Items]
Upfront payment received	$ 200.0

Summary of Minimum Annual Future Payments Under Operating Leases (Detail) $ in Thousands	Sep. 30, 2013 USD ($)
Operating Leased Assets [Line Items]
Operating leases, Cash payments due by period, Total	$ 11,007
Operating leases, Cash payments due by period, 2013	316
Operating leases, Cash payments due by period, 2014	1,052
Operating leases, Cash payments due by period, 2015	1,079
Operating leases, Cash payments due by period, 2016	1,106
Operating leases, Cash payments due by period, 2017	1,133
Operating leases, Cash payments due by period, After 2017	$ 6,321

Commitments and Contingencies - Additional Information (Detail) $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013 USD ($)	Jul. 04, 2011 ft²	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Operating leases
Office space in Washington, D.C., operating lease termination year					2023
Renewal term of Lease agreement for Vanda's current headquarters		5 years
Total area of Vanda's current headquarters in sq ft \| ft²		21,400
Allowance for tenant improvements	$ 1.9
Lease termination penalty expense, Rockville								$ 0.7
Additional rent expense							$ 0.8
Lease exit liability component							1.3
Reversal of deferred rent liability component							(0.5)
Rent expense			$ 0.3	$ 0.2	$ 0.8	$ 1.8
Research and development
Operating leases
Research and development component							0.6	0.6
General and Administrative Expense
Operating leases
General and administrative component							$ 0.2	$ 0.1

Summary of Lease Exit Activity (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Restructuring Reserve Disclosures [Abstract]
Balance at Beginning of Period	$ 453	$ 740
Costs Incurred and Charged to Expense	(10)	1,220	$ 740
Costs Paid or Otherwise Settled	384	1,507
Balance at End of Period	$ 59	$ 453	$ 740

Commitments and Contingencies (Textual 1 - Consulting Agreement) - Additional Information (Detail) - Consulting Agreement - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Consulting Fees
Tasimelteon milestone payment made to consultant based on FDA acceptance of NDA	$ 0.5	$ 0.5
Future obligation to make tasimelteon milestone payment based on FDA approval of NDA		$ 2.0

Commitments and Contingencies (Textual 2 - Tasimelteon) - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2006	Dec. 31, 2004
Tasimelteon
Payment to BMS as an initial license fee				$ 0.5
Possible future tasimelton milestone payments to BMS				Up to $37.0 million
Milestone payment under license agreement			$ 1.0
Possible future milestone payment in the event tasimelteon reaches a certain agreed upon sales threshold				$ 25.0
Future percentage of royalty payments based net sales of tasimelteon				Low teens
Percentage of future sublicense fees payable to BMS				Mid-twenties
License Agreement
Tasimelteon
Tasimelteon milestone payment made based on FDA acceptance of NDA	$ 3.0	$ 3.0
Future obligation to make tasimelteon milestone payment based on FDA approval of NDA				$ 8.0

Commitments and Contingencies (Textual 3 - Fanapt) - Additional Information (Detail) - Fanapt - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2007	Dec. 31, 2004
Fanapt
Initial license fee paid to Novartis in 2004			$ 0.5
Possible future Fanapt maximum milestone payments to Novartis			Less than $100.0 million
Milestone payment in 2007 to Novartis relating to NDA filing for Fanapt		$ 5.0
Future royalty payments to Novartis based on sales			Mid-twenties
Milestone payment in 2009 to Novartis relating to FDA approval of Fanapt	$ 12.0
Upfront payment received	200.0
Potential future maximum milestone payments from Novartis	$ 265.0

Commitments and Contingencies (Textual 4 - VLY 686) - Additional Information (Detail) - VLY 686 $ in Millions	9 Months Ended
	Sep. 30, 2012 USD ($)
VLY-686
VLY - 686 initial license fee paid to Lilly	$ 1.0
Possible future royalties to Lilly on net sales	Low double digits
Possible future payments to Lilly based on achievement of VLY - 686 pre-NDA approval milestones	$ 4.0
Possible future maximum payments to Lilly based on achievement of VLY - 686 future regulatory approval and sales milestones	$ 95.0

Commitments and Contingencies (Textual 5 - Future Milestone Payments) - Additional Information (Detail)	Sep. 30, 2013 USD ($)
Future milestone payments
Liabilities recorded, future license payments	$ 0
Liabilities recorded, contractual obligations relating to the license agreements	$ 0

Commitments and Contingencies (Textual 6 - Agreements) - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2013
Maximum
Agreements
Clinical services agreement notice period for termination	60 days

Common Stock - Additional Information (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2013 USD ($) $ / shares shares
Stockholders Equity Note [Line Items]
Public common stock offering, shares \| shares	4,680,000
Common stock offering price, per share \| $ / shares	$ 11.14
Net cash proceeds from public common stock offering \| $	$ 48,552

Total Employee Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Total employee stock-based compensation expense	$ 1,495	$ 576	$ 3,227	$ 3,155
Research and development
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Total employee stock-based compensation expense	404	(110)	1,164	1,003
General and administrative
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Total employee stock-based compensation expense	$ 1,091	$ 686	$ 2,063	$ 2,152

Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted (Detail) - $ / shares	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected dividend yield
Weighted average expected volatility	63.00%	68.00%
Weighted average expected term (years)	6 years 11 days	6 years 11 days
Weighted average risk-free rate	1.28%	1.04%
Weighted average fair value per share	$ 3.98	$ 2.71

Employee Stock-Based Compensation (Textual 1 - Equity Incentive Plan) - Additional Information (Detail)	Sep. 30, 2013 EquityPlan shares	Dec. 31, 2012 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| EquityPlan	2
2004 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options granted	670,744	672,145
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options granted	4,748,555	4,865,487
Common stock reserved for issuance	8,995,930
2006 Plan \| Outstanding options and RSUs granted (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares subject to outstanding options and RSUs	5,332,870
Shares available for future grant	2,213,524

Employee Stock-Based Compensation (Textual 2 Stock Option) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation option awards contractual term		10 years
Portion of initial stock options granted to employees that vests on employee's first anniversary		25.00%
Portion of initial stock options granted to employees that vests ratably over three years after completion of first year of service		75.00%
Option awards vesting period, after completion of one year of service		3 years
Vesting period		4 years
Vesting period for initial stock options granted to directors		4 years
Vesting period for subsequent stock options granted to directors		1 year
Unrecognized compensation expenses, weighted average period		1 year 8 months 12 days
Proceeds from the exercise of stock options		$ 1,062
Performance stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based stock options outstanding			151,250
Unrecognized compensation expenses			$ 300
Stock-based compensation expense	$ 300	300
Service option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expenses	$ 2,100	$ 2,100
Unrecognized compensation expenses, weighted average period		1 year 7 months 6 days

Summary of Option Activity for 2004 Plan (Detail) - 2004 Plan $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2013 USD ($) $ / shares shares
Number of Shares
Beginning balance \| shares	672,145
Expired \| shares	(115)
Exercised \| shares	(1,286)
Ending balance \| shares	670,744
Exercisable \| shares	670,744
Weighted Average Exercise Price at Grant Date
Beginning balance \| $ / shares	$ 1.79
Expired \| $ / shares	4.73
Exercised \| $ / shares	3.67
Ending balance \| $ / shares	1.79
Exercisable \| $ / shares	$ 1.79
Weighted Average Remaining Term (Years)
Beginning balance outstanding	2 years 9 months 11 days
Ending balance outstanding	2 years 11 days
Exercisable	2 years 11 days
Aggregate Intrinsic Value
Beginning balance \| $	$ 1,512
Exercised \| $	7
Ending balance \| $	6,144
Exercisable \| $	$ 6,144

Summary of Option Activity for 2006 Plan (Detail) - 2006 Plan $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2013 USD ($) $ / shares shares
Number of Shares
Beginning balance \| shares	4,865,487
Granted \| shares	356,000
Forfeited \| shares	(50,533)
Expired \| shares	(258,238)
Exercised \| shares	(164,161)
Ending balance \| shares	4,748,555
Exercisable \| shares	3,343,423
Weighted Average Exercise Price at Grant Date
Beginning balance \| $ / shares	$ 10.83
Granted \| $ / shares	6.88
Forfeited \| $ / shares	6.35
Expired \| $ / shares	10.68
Exercised \| $ / shares	6.44
Ending balance \| $ / shares	10.75
Exercisable \| $ / shares	$ 12.97
Weighted Average Remaining Term (Years)
Beginning balance outstanding	7 years 1 month 24 days
Ending balance outstanding	6 years 7 months 24 days
Exercisable	5 years 9 months 18 days
Aggregate Intrinsic Value
Beginning balance \| $	$ 634
Exercised \| $	836
Ending balance \| $	16,292
Exercisable \| $	$ 8,561

Employee Stock-Based Compensation (Textual 3 RSU) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of RSU awards in equal installments		4 years
Unrecognized compensation costs related to unvested awards, weighted average period		1 year 8 months 12 days
Unrecognized compensation expenses related to unvested RSUs	$ 2,400	$ 2,400
Fair value of common stock vested but unissued		400
Fair value of common stock vested		$ 600
Common shares received in payment of payroll taxes (shares)		49,520
Tax obligations paid in connection with settlement of restricted stock units		$ 196
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding restricted stock units granted	584,315	584,315		705,376
Fair value of common stock vested but unissued, shares		48,750
Fair value of common stock vested, shares		152,436
Performance restricted stock unit (RSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expenses related to unvested RSUs			$ 200
Outstanding restricted stock units granted			48,750
Stock-based compensation expense	$ 200	$ 200

Summary of RSU Activity for 2006 Plan (Detail) - 2006 Plan	9 Months Ended
	Sep. 30, 2013 $ / shares shares
Number of Shares Unvested
Beginning balance \| shares	705,376
Granted \| shares	99,500
Forfeited \| shares	(19,375)
Vested and unissued \| shares	(48,750)
Vested \| shares	(152,436)
Ending balance \| shares	584,315
Weighted Average Price/Share Unvested
Beginning balance \| $ / shares	$ 5.91
Granted \| $ / shares	6.69
Forfeited \| $ / shares	6.66
Vested and unissued \| $ / shares	3.11
Vested \| $ / shares	7.86
Ending balance \| $ / shares	$ 5.74