Vanda Pharmaceuticals Inc. (VNDA) reported fourth quarter 2013 net loss per share of 23 cents, flat year over year. The reported loss was wider than the Zacks Consensus Estimate of a loss of 18 cents.
Fourth quarter revenues of $8.8 million were above the year-ago revenues of $7.9 million. Revenues surpassed the Zacks Consensus Estimate of $8 million. Revenues included Fanapt royalties from Novartis (NVS) worth $2 million in the reported quarter, above year-ago royalties of $1.2 million.
According to IMS, Fanapt prescriptions for the fourth quarter were roughly 43,400, up 14% year over year but down 1% sequentially.
Research and development expenses were $6.2 million, down 41.4% from the year-ago quarter. The decrease was attributable to the completion of efficacy studies for Hetlioz in the treatment of Non-24-Hour sleep-wake disorder (Non-24) and major depressive disorder. We note that the U.S. Food and Drug Administration (FDA) approved Hetlioz 20mg in Jan 2014 for the treatment of Non-24. Hetlioz, the first and only FDA approved medication for Non-24, will be launched in the second quarter of 2014. Vanda expects to file a Marketing Authorisation Application (MAA) with the European Medicines Agency (EMA) for Hetlioz (Non-24) in 2014.
General and administrative expenses increased to $9.9 million from $3.2 million in the year-ago quarter mainly due to rising commercial activities for the U.S. launch of Hetlioz.
An interesting candidate in Vanda’s pipeline is VLY-686. Vanda has initiated a proof of concept study for VLY-686 in the treatment resistant pruritus in atopic dermatitis.
2013 Results
Vanda reported a full year 2013 loss of 67 cents per share, wider than the Zacks Consensus Estimate of a loss of 63 cents but narrower than the 2012 loss of 98 cents per share.
Full year revenues were $33.9 million, almost at par with the Zacks Consensus Estimate of $34 million. Revenues in 2012 were $32.7 million. Revenues included Fanapt royalties from Novartis worth $7.1 million in 2013, above year-ago royalties of $5.9 million.
Our Take
Vanda carries a Zacks Rank #3 (Hold). The year 2014 will be eventful for Vanda as it launches Hetlioz in the U.S. Investors looking for better-ranked stocks in the biopharma sector may consider companies like Endocyte Inc (ECYT) and Biogen Idec Inc. (BIIB). Both companies carry a Zacks Rank #1 (Strong Buy).
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