e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2010
VANDA PHARMACEUTICALS INC.
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
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001-34186
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03-0491827 |
(Commission File No.)
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(IRS Employer Identification No.) |
9605 Medical Center Drive
Suite 300
Rockville, Maryland 20850
(Address of principal executive offices and zip code)
Registrants telephone number, including area code: (240) 599-4500
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On August 5, 2010, Vanda Pharmaceuticals Inc. (the Company or Vanda) issued a press
release and is holding a conference call regarding its results of operations and financial
condition for the second quarter ended June 30, 2010. The full text of the press release is
furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Various statements to be made during the conference call are forward-looking statements
under the securities laws. Words such as, but not limited to, believe, expect, anticipate,
estimate, intend, plan, targets, likely, will, would, and could, 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 Companys forward-looking statements include, among others: the extent and effectiveness of the
development, sales and marketing and distribution support Fanapt® receives; Vandas inability to
utilize a substantial portion of its prior net operating losses and research and development
credits; Vandas ability to successfully commercialize Fanapt outside of the U.S. and Canada;
delays in the completion of Vandas clinical trials; a failure of Vandas products to be
demonstrably safe and effective; Vandas failure to obtain regulatory approval for its products or
to comply with ongoing regulatory requirements for its products; a lack of acceptance of Vandas
products in the marketplace, or a failure to become or remain profitable; Vandas expectations
regarding trends with respect to its costs and expenses; Vandas inability to obtain the capital
necessary to fund additional research and development activities; Vandas failure to identify or
obtain rights to new products; Vandas failure to develop or obtain sales, marketing and
distribution resources and expertise or to otherwise manage its growth; a loss of any of Vandas
key scientists or management personnel; losses incurred from product liability claims made against
Vanda; a loss of rights to develop and commercialize Vandas products under its license and
sublicense agreements and other factors that are described in the Risk Factors and Managements
Discussion and Analysis of Financial Condition and Results of Operations sections of Vandas
Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2010, which will be filed with the SEC in the third
quarter of 2010. In addition to the risks described above and in Vandas Annual Report on Form
10-K and Quarterly Reports on Form 10-Q, other unknown or unpredictable factors also could affect
Vandas 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 conveyed on the conference
call will be provided only as of the date of the call, and the Company undertakes no obligation to
update any forward-looking statements made during the call after the date thereof whether as a
result of new information, future events, or otherwise.
The information in Item 2.02 of this Current Report on Form 8-K and the Exhibit attached
hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the Exchange Act) or otherwise subject to the liabilities of that section, nor
shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
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Description |
99.1
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Press release of Vanda Pharmaceuticals Inc. dated August 5, 2010. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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VANDA PHARMACEUTICALS INC.
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By: |
/s/ STEPHANIE R. IRISH
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Name: |
Stephanie R. Irish |
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Title: |
Acting Chief Financial Officer,
Secretary and Treasurer |
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Dated: August 5, 2010
exv99w1
Exhibit 99.1
Not For Immediate Release
Company Contact:
Cristina Murphy
Communications Manager
Vanda Pharmaceuticals Inc.
(240) 599-4500
cristina.murphy@vandapharma.com
Vanda Pharmaceuticals Reports Second Quarter 2010 Results
ROCKVILLE, MD. August 5, 2010 Vanda Pharmaceuticals Inc. (Vanda) (NASDAQ: VNDA),
a biopharmaceutical company focused on the development and commercialization of products for
central nervous system disorders, today announced financial and operational results for the second
quarter and six months ended June 30, 2010.
Key Highlights:
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Vanda records year to date revenue of $20.7 million including year to date royalties of
$2.1 million. |
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Fanapt® prescriptions continued to increase month-over-month during the second quarter
of 2010. Monthly prescriptions of Fanapt®, as reported by IMS, increased from approximately
500 in February 2010 (the first full month of sales) to over 4,000 in June of 2010. |
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On August 3, 2010, the U.S. Patent and Trademark Office (USPTO) issued a patent for a
microsphere, long-acting injectable (depot) formulation of iloperidone. The USPTO has
informed Vanda that the patent term adjustment included an additional 605 days, making the
patent expiration date June 27, 2023. |
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Phase III studies of tasimelteon for the treatment of Non-24-Hour Sleep/Wake Disorder
(N24HSWD) in blind individuals with no light perception to be initiated in the third
quarter of 2010. |
Total revenue for the second quarter of 2010 was $8.3 million, compared to $12.4 million for the
first quarter of 2010 and $0 for the second quarter of 2009. Total operating expenses for the
second quarter of 2010 were $7.1 million, compared to $6.3 million for the first quarter of 2010
and $12.4 million for the second quarter of 2009. Net income was $1.3 million for the second
Page 1 of 9
quarter of 2010 compared to net income of $0.5 million for the first quarter of 2010 and a net loss
of $12.4 million for the second quarter of 2009.
Vandas cash, cash equivalents, and marketable securities as of June 30, 2010 totaled approximately
$207.1 million. Approximately 28.0 million shares of Vanda common stock were outstanding as of
June 30, 2010. Basic and diluted net income per common share for the second quarter of 2010 were
$0.05 and $0.04, respectively, compared to basic and diluted net income per common share of $0.02
for the first quarter of 2010 and a basic and diluted net loss per common share of $0.46 for the
second quarter of 2009.
Year to date June 30, 2010 Key Financial Figures1
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YTD 6/30/10($) |
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YTD 6/30/09($) |
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Change ($) |
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Change (%) |
Total revenues |
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20,711,000 |
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20,711,000 |
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N/A |
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R&D expenses |
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4,444,000 |
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9,529,000 |
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(5,085,000 |
) |
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-53 |
% |
G&A expenses |
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5,331,000 |
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9,212,000 |
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(3,881,000 |
) |
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-42 |
% |
Employee non-cash stock-based
compensation |
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2,733,000 |
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5,057,000 |
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(2,324,000 |
) |
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-46 |
% |
Net income (loss) before tax provision |
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7,436,000 |
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(18,896,000 |
) |
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N/A |
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N/A |
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Tax provision |
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5,628,000 |
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5,628,000 |
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N/A |
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Net income (loss) |
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1,809,000 |
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(18,896,000 |
) |
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N/A |
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Basic net income per share attributable
to common stockholders |
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0.07 |
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(0.71 |
) |
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N/A |
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Diluted net income per share attributable
to common stockholders |
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0.06 |
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(0.71 |
) |
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N/A |
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Second Quarter 2010 Key Financial Figures1
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Q2 2010 ($) |
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Q1 2010 ($) |
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Change ($) |
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Change (%) |
Total revenues |
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8,290,000 |
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12,421,000 |
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(4,131,000 |
) |
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-33 |
% |
R&D expenses |
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2,404,000 |
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2,041,000 |
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363,000 |
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18 |
% |
G&A expenses |
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2,842,000 |
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2,489,000 |
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353,000 |
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14 |
% |
Employee non-cash stock-based
compensation |
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1,644,000 |
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1,089,000 |
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555,000 |
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51 |
% |
Net income before tax provision |
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1,242,000 |
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6,195,000 |
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(4,953,000 |
) |
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-80 |
% |
Tax (benefit) provision |
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(38,000 |
) |
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5,665,000 |
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N/A |
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N/A |
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Net income |
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1,279,000 |
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529,000 |
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750,000 |
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142 |
% |
Basic net income per share attributable
to common stockholders |
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0.05 |
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0.02 |
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0.03 |
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150 |
% |
Diluted net income per share attributable
to common stockholders |
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0.04 |
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0.02 |
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0.02 |
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100 |
% |
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Total cash and marketable securities |
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207,117,000 |
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202,424,000 |
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4,693,000 |
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2 |
% |
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OPERATIONAL HIGHLIGHTS
Year-to-date net sales of Fanapt® were reported by Novartis to be approximately $21.4 million
comprised of $20.7 million in the first quarter of 2010 and $0.7 million in the second quarter of
2010. Vanda is encouraged by the continuing growth in total number of monthly prescriptions, as
reported by IMS, and by the strengthened promotional launch of Fanapt® since the approval of
marketing materials by the FDA in May 2010. Fanapt® monthly prescriptions, as reported by
IMS, increased from approximately 500 in February 2010 (the first full month of sales) to over
4,000 in June of 2010.
On February 23, 2010, the USPTO issued a notice of allowance for Vandas patent application of a
microsphere, long-acting injectable (depot) formulation of iloperidone. Subsequently, on
Page 2 of 9
August 3,
2010, the USPTO informed Vanda that the patent has been issued with a patent term adjustment of an
additional 605 days, extending the patent expiration date to June 27, 2023. Novartis is responsible
for the further development of the depot formulation in the U.S and Canada. Vanda has retained the
rights for the development and commercialization of the iloperidone depot formulation outside the
U.S. and Canada. Vanda also continues to explore the regulatory path and commercial opportunity for
Fanapt® oral formulation outside of the U.S. and Canada.
With respect to tasimelteon, Vanda is prepared to initiate an efficacy and safety study of
tasimelteon in the third quarter for the treatment of Non-24-Hours Sleep/Wake Disorder (N24HSWD) in
blind individuals with no light perception. This trial will be a randomized, double-blind,
placebo-controlled study with an enrollment of approximately 160 patients with N24HSWD. The trial
will have a 6-month treatment period and will include measures of both nighttime and daytime sleep,
as well as laboratory measures of the synchronization between the internal body clock and the
24-hour environmental light/dark cycle.
Vanda is also prepared to initiate a one-year safety study of tasimelteon for the treatment of
N24HSWD. This will be an open-label safety study that will enroll approximately 140 patients with
N24HSWD. Vanda plans to conduct additional clinical trials over the next one to two years to
support U.S. and European regulatory submissions. Tasimelteon was granted orphan drug designation
by the FDA on January 19, 2010. The application for orphan designation from the European Medicines
Agency is pending.
FINANCIAL DETAILS
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Revenues decreased by $4.1 million from $12.4 million to $8.3 million for the
second quarter of 2010 due to decreases of $2.1 million in product revenue for inventory sold
to Novartis and $2.0 million in royalty revenue. Vanda sold the remaining Fanapt® inventory
to Novartis in the second quarter of 2010. Despite a significant growth of Fanapt®
prescription demand in the second quarter, royalty revenue decreased from the first quarter
due to stocking of pharmacies in the first quarter. |
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Cost of sales for the second quarter of 2010 was $1.9 million, consisting of $0.4
million resulting from the amortization of the capitalized intangible asset related to the
milestone payment to Novartis and $1.5 million for the inventory sold to Novartis, compared to
cost of sales for the first quarter of 2010 of $1.8 million, consisting of $0.4 million
resulting from the amortization of the capitalized intangible asset related to the milestone
payment to Novartis and $1.4 million for inventory sold to Novartis. |
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Research and development (R&D) expenses were $2.4 million for the second quarter of 2010,
compared to $2.0 million for the first quarter of 2010 and $7.2 million for the second quarter
of 2009. The increase in R&D expenses in the second quarter of 2010 relative to the first
quarter of 2010 is primarily due to costs incurred in connection with the preparation of the
Phase III trials for tasimelteon in N24HSWD. |
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General and administrative (G&A) expenses were $2.8 million for the second quarter of 2010,
compared to $2.5 million for the first quarter of 2010 and $5.0 million for the second quarter
of 2009. The increase in G&A expenses in the second quarter of 2010 relative to the first
quarter of 2010 is primarily due to the higher non-cash stock-based compensation costs in the
second quarter of 2010. |
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Employee stock-based compensation expense recorded in the second quarter of 2010 totaled $1.6
million, compared to $1.1 million for the first quarter of 2010 and $2.8 million for the second
quarter of 2009. The increase in employee stock-based compensation expense in the second
quarter of 2010 relative to the first quarter of 2010 is the result of the
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Page 3 of 9
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cancellation of
unvested options in the first quarter of 2010, which reduced the first quarter 2010 expense. |
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Tax provision: Vanda recorded a tax benefit of $38,000 in the second quarter of
2010. The tax provision is based on an annualized effective tax rate for 2010 applied to the
year to date pre-tax book income with the addition or subtraction of discrete items. The
quarterly tax provision is not indicative of estimated quarterly cash tax payments. The tax
provision rate applied in 2010 was determined primarily based upon a net increase in valuation
allowance for excess of the deferred revenue recorded from the $200.0 million upfront
milestone payment received from Novartis at the end of 2009 over the existing tax attributes
utilized. The provision also includes the impact of tax credits relating to the orphan drug
designation for tasimelteon. Vanda will continue to evaluate its qualified expenses for the
orphan drug tax credit and, to the extent that actual qualified expenses vary significantly
from Vandas estimates, Vandas effective tax rate will increase or decrease accordingly. |
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Vandas cash, cash equivalents and marketable securities as of June 30, 2010
totaled approximately $207.1 million, compared to approximately $202.4 million as of March 31,
2010. Cash, cash equivalents and marketable securities increased by $4.7 million during the
second quarter of 2010. Changes included: $1.3 million of net income, an increase in non-cash
items of $2.0 million, the receipt of $5.4 million in amounts due from Novartis for the
remaining finished product and royalty revenue, a decrease in inventory of $1.5 million for
the final inventory sold to Novartis, a decrease of $6.7 million in the deferred revenue
related to the upfront payment received from Novartis in December 2009, an increase in other
working capital of $0.5 million and $0.7 million received in financing activities from the
exercise of stock options. |
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Net income for the second quarter of 2010 was $1.3 million, compared to net
income of $0.5 million for the first quarter of 2010 and a net loss of $12.4 million for the
second quarter of 2009. |
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Basic and diluted net income per common share for the second quarter of 2010 were
$0.05 and $0.04, respectively, compared to basic and diluted net income per common share of
$0.02 for the first quarter of 2010 and a basic and diluted net loss of $0.46 for the second
quarter of 2009. |
CONFERENCE CALL
Vanda has scheduled a conference call for today, Thursday, August 5, 2010, at 10:00 AM ET. During
the call, Mihael H. Polymeropoulos, M.D., President and CEO, and Stephanie Irish, Acting CFO, will
discuss quarterly results and other corporate activities. Investors can call 1-866-788-0544
(domestic) and 1-857-350-1682 (international) prior to the 10:00 AM start time and ask for the
Vanda Pharmaceuticals conference call hosted by Dr. Polymeropoulos (participant passcode 57802480).
A replay of the call will be available Thursday, August 5, 2010 at 1:00 PM ET and will be
accessible until Thursday, August 12, 2010, at 5:00 PM ET. The replay call-in number is
1-888-286-8010 for domestic callers and 1-617-801-6888 for international callers. The access
number is 89391430.
The conference call will be broadcast simultaneously on Vandas website,
http://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 Vandas website for a
period of 30 days, through September 4, 2010.
Page 4 of 9
ABOUT VANDA PHARMACEUTICALS INC.:
Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and
commercialization of products for central nervous system disorders. For more on Vanda
Pharmaceuticals Inc., please visit http://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,
targets, likely, will, would, and could, 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 companys
forward-looking statements include, among others: the extent and effectiveness of the development,
sales and marketing and distribution support Fanapt® receives; Vandas inability to utilize a
substantial portion of its prior net operating losses and research and development credits; Vandas
ability to successfully commercialize Fanapt® outside of the U.S. and Canada; delays in the
completion of Vandas clinical trials; a failure of Vandas products to be demonstrably safe and
effective; Vandas failure to obtain regulatory approval for its products or to comply with ongoing
regulatory requirements for its products; a lack of acceptance of Vandas products in the
marketplace, or a failure to become or remain profitable; Vandas expectations regarding trends
with respect to its costs and expenses; Vandas inability to obtain the capital necessary to fund
additional research and development activities; Vandas failure to identify or obtain rights to new
products; Vandas failure to develop or obtain sales, marketing and distribution resources and
expertise or to otherwise manage its growth; a loss of any of Vandas key scientists or management
personnel; losses incurred from product liability claims made against Vanda; a loss of rights to
develop and commercialize Vandas products under its license and sublicense agreements and other
factors that are described in the Risk Factors and Managements Discussion and Analysis of
Financial Condition and Results of Operations sections of Vandas annual report on Form 10-K for
the fiscal year ended December 31, 2009 and quarterly report on Form 10-Q for the fiscal quarter
ended March 31, 2010, which are on file with the SEC and available on the SECs website at
www.sec.gov. Additional information will also be set forth in those sections of Vandas quarterly
report on Form 10-Q for the fiscal quarter ended June 30, 2010, which will be filed with the SEC in
the third quarter of 2010. In addition to the risks described above and in Vandas annual report on
Form 10-K and quarterly reports on Form 10-Q, other unknown or unpredictable factors also could
affect Vandas 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.
####
Page 5 of 9
VANDA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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2010 |
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2009 |
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2010 |
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2009 |
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Revenues: |
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Licensing agreement |
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$ |
6,678,899 |
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$ |
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$ |
13,284,404 |
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$ |
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Royalty revenue |
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69,331 |
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2,136,079 |
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Product sales |
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1,541,581 |
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5,290,150 |
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Total revenues |
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8,289,811 |
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20,710,633 |
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Operating expenses: |
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Cost of sales licensing agreement |
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372,696 |
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|
229,352 |
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741,297 |
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229,352 |
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Cost of sales product |
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1,515,428 |
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2,890,746 |
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Research and development |
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2,403,545 |
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7,195,595 |
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4,444,193 |
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9,528,934 |
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General and administrative |
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2,841,947 |
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4,988,317 |
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5,330,918 |
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9,212,351 |
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Total operating expenses |
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7,133,616 |
|
|
|
12,413,264 |
|
|
|
13,407,154 |
|
|
|
18,970,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
1,156,195 |
|
|
|
(12,413,264 |
) |
|
|
7,303,479 |
|
|
|
(18,970,637 |
) |
Interest income |
|
|
85,433 |
|
|
|
21,163 |
|
|
|
132,835 |
|
|
|
74,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax provsion |
|
|
1,241,628 |
|
|
|
(12,392,101 |
) |
|
|
7,436,314 |
|
|
|
(18,896,088 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax provision (benefit) |
|
|
(37,713 |
) |
|
|
|
|
|
|
5,627,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,279,341 |
|
|
$ |
(12,392,101 |
) |
|
$ |
1,808,706 |
|
|
$ |
(18,896,088 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
(0.46 |
) |
|
$ |
0.07 |
|
|
$ |
(0.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.04 |
|
|
$ |
(0.46 |
) |
|
$ |
0.06 |
|
|
$ |
(0.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of net income
(loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
27,896,889 |
|
|
|
26,900,841 |
|
|
|
27,802,298 |
|
|
|
26,777,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
28,438,118 |
|
|
|
26,900,841 |
|
|
|
28,383,142 |
|
|
|
26,777,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 6 of 9
VANDA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010 |
|
|
December 31, 2009 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
145,650,740 |
|
|
$ |
205,295,488 |
|
Marketable securities |
|
|
61,466,528 |
|
|
|
|
|
Accounts receivable |
|
|
654,931 |
|
|
|
3,163,898 |
|
Inventory |
|
|
|
|
|
|
2,398,517 |
|
Prepaid expenses, deposits and other current
assets |
|
|
1,519,894 |
|
|
|
2,092,581 |
|
Deferred tax, current portion |
|
|
1,794,384 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
211,086,477 |
|
|
|
212,950,484 |
|
|
Property and equipment, net |
|
|
1,094,550 |
|
|
|
1,316,302 |
|
Restricted cash |
|
|
430,230 |
|
|
|
430,230 |
|
Intangible asset, net |
|
|
10,275,768 |
|
|
|
11,017,065 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
222,887,025 |
|
|
$ |
225,714,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,019,643 |
|
|
$ |
2,423,877 |
|
Accrued expenses |
|
|
1,407,984 |
|
|
|
2,321,301 |
|
Accrued income taxes |
|
|
5,763,798 |
|
|
|
|
|
Deferred revenue, short term |
|
|
26,788,991 |
|
|
|
26,788,991 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
34,980,416 |
|
|
|
31,534,169 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Deferred rent |
|
|
498,530 |
|
|
|
506,852 |
|
Deferred revenue, long term |
|
|
157,357,798 |
|
|
|
170,642,202 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
192,836,744 |
|
|
|
202,683,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
28,000 |
|
|
|
27,569 |
|
Additional paid-in capital |
|
|
288,990,733 |
|
|
|
283,836,642 |
|
Accumulated other comprehensive income |
|
|
56,195 |
|
|
|
|
|
Accumulated deficit |
|
|
(259,024,647 |
) |
|
|
(260,833,353 |
) |
|
|
|
|
|
|
|
Total stockholders equity |
|
|
30,050,281 |
|
|
|
23,030,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
222,887,025 |
|
|
$ |
225,714,081 |
|
|
|
|
|
|
|
|
Page 7 of 9
VANDA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2010 |
|
|
2009 |
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,808,706 |
|
|
$ |
(18,896,088 |
) |
Adjustments to reconcile net income (loss) to net cash
used
in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
178,716 |
|
|
|
239,669 |
|
Employee and non-employee stock-based compensation |
|
|
2,759,808 |
|
|
|
5,279,366 |
|
Gain on disposal of assets |
|
|
(23,185 |
) |
|
|
|
|
Amortization of premium/discounts on investments |
|
|
(32,933 |
) |
|
|
96,599 |
|
Amortization of intangible assets |
|
|
741,297 |
|
|
|
229,352 |
|
Deferred tax benefit |
|
|
(1,794,384 |
) |
|
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
572,687 |
|
|
|
158,206 |
|
Accounts receivable |
|
|
2,508,967 |
|
|
|
|
|
Inventory |
|
|
2,398,517 |
|
|
|
(1,272,240 |
) |
Accounts payable |
|
|
(1,404,234 |
) |
|
|
1,404,519 |
|
Accrued expenses |
|
|
(913,317 |
) |
|
|
1,516,814 |
|
Accrued income taxes |
|
|
5,763,798 |
|
|
|
|
|
Other liabilities |
|
|
(8,322 |
) |
|
|
2,041 |
|
Deferred revenue |
|
|
(13,284,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(728,283 |
) |
|
|
(11,241,762 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Acquisition of intangible asset |
|
|
|
|
|
|
(7,000,000 |
) |
Proceeds from sales of property and equipment |
|
|
66,221 |
|
|
|
|
|
Purchases of investments |
|
|
(63,877,400 |
) |
|
|
(8,082,729 |
) |
Proceeds from sales of investments |
|
|
|
|
|
|
126,547 |
|
Proceeds from maturities of investments |
|
|
2,500,000 |
|
|
|
10,250,000 |
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(61,311,179 |
) |
|
|
(4,706,182 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Excess tax benefits from exercise of stock options |
|
|
1,658,194 |
|
|
|
|
|
Proceeds from exercise of stock options |
|
|
736,520 |
|
|
|
882,843 |
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
2,394,714 |
|
|
|
882,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
(59,644,748 |
) |
|
|
(15,065,101 |
) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
|
205,295,488 |
|
|
|
39,079,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
145,650,740 |
|
|
$ |
24,014,203 |
|
|
|
|
|
|
|
|
Page 8 of 9
SOURCE Vanda Pharmaceuticals Inc.
08/5/2010
CONTACT: Cristina Murphy, Communications Manager, of Vanda Pharmaceuticals Inc., +1-240-599-4500
Web site: http://www.vandapharma.com
(VNDA)
CO: Vanda Pharmaceuticals Inc.
Page 9 of 9