WASHINGTON, May 1, 2019 /PRNewswire/ -- Vanda
Pharmaceuticals Inc. (Vanda) (Nasdaq: VNDA) today announced
financial and operational results for the first quarter ended
March 31, 2019.
"During the first quarter, Vanda made significant advances
towards its commercial and research goals. Patients on treatment
with Hetlioz continue to increase steadily, driven by broader
awareness and recognition of Non-24. We are preparing for a
possible launch later this year in jet lag disorder, an indication
that has the potential to drive significant growth for our Hetlioz
franchise. Tradipitant clinical development is advancing for three
indications, atopic dermatitis, gastroparesis and motion sickness,"
said Mihael H. Polymeropoulos, M.D.,
Vanda's President and CEO. "We believe that Vanda is well
positioned for significant growth in the coming quarters and years
given its strong commercial and clinical development pipeline and
its exceptional people."
Key Financial Highlights:
- Total net product sales from HETLIOZ® and
Fanapt® were $47.7 million
in the first quarter of 2019, a 10% decrease compared to
$53.0 million in the fourth quarter
of 2018 and a 9% increase compared to $43.6
million in the first quarter of 2018.
- HETLIOZ® net product sales were $29.0 million in the first quarter of 2019, an
11% decrease compared to $32.4
million in the fourth quarter of 2018 and a 14% increase
compared to $25.4 million in the
first quarter of 2018. In the first quarter of 2019,
HETLIOZ® units sold to patients declined by 2% compared
to the fourth quarter of 2018.
- Fanapt® net product sales were $18.8 million in the first quarter of 2019, a 9%
decrease compared to $20.6 million in
the fourth quarter of 2018 and a 3% increase compared to
$18.2 million in the first quarter of
2018. In the first quarter of 2019, Fanapt®
prescriptions, as reported by IQVIA, declined by 5% compared to the
fourth quarter of 2018.
- Cash, cash equivalents and marketable securities (Cash) were
$267.8 million as of March 31, 2019, representing an increase to Cash
of $10.5 million and $19.0 million as compared to December 31, 2018 and March 31, 2018, respectively.
Key Research and Development Highlights:
Tradipitant – Clinical Development
- Vanda plans to meet with the U.S. Food and Drug Administration
(the FDA) in the second quarter of 2019 to further define and
confirm the path towards approval of tradipitant in the treatment
of patients with gastroparesis.
- Vanda plans to initiate a Phase III clinical study of
tradipitant in gastroparesis in the second quarter of
2019.
- Enrollment in the Phase III clinical study (EPIONE) of
tradipitant in atopic dermatitis is ongoing. Results are expected
in the first half of 2020. A second Phase III clinical study
is expected to begin in the first quarter of
2020.
- In January 2019, Vanda initiated
a Phase II clinical study of tradipitant in motion sickness. Study
results are expected in the third quarter of 2019.
HETLIOZ® (tasimelteon)
- The HETLIOZ® supplemental New Drug Application
(sNDA) for the treatment of jet lag disorder is under review by the
FDA with a Prescription Drug User Fee Act target action date of
August 16, 2019.
- Vanda expects to meet with the FDA in the third quarter of 2019
to confirm the regulatory path forward for HETLIOZ® in
the treatment of patients with SMS and expects to file an sNDA in
the third quarter of 2019.
- Vanda plans in the third quarter of 2019 to initiate a Phase II
clinical study of HETLIOZ® in delayed sleep phase
disorder (DSPD) in patients who have a mutation in the CRY1 gene,
which is believed to be causative in a subset of patients with
DSPD.
Fanapt® (iloperidone)
- Enrollment is ongoing in a pharmacokinetic study for the
once-a-month long acting injectable (LAI) formulation of
Fanapt®.
- A randomized study of Fanapt® in bipolar disorder is
planned to begin in 2019.
VTR-297 (histone deactetylase (HDAC) inhibitor)
- Enrollment is ongoing in a Phase I clinical study (1101) of
VTR-297 in hematologic malignancies.
Tradipitant – Partial Clinical Hold and FDA Dispute
In April 2018, Vanda submitted a
protocol amendment to the FDA, proposing a 52-week open-label
extension (OLE) period for patients who had completed the
tradipitant Phase II clinical study (2301) in gastroparesis. In
May 2018, based on feedback from the
FDA, Vanda amended the protocol limiting the duration of treatment
in the 2301 study to a total of three months, while continuing to
seek further dialogue with the FDA on extending the study duration
to 52-weeks. As a part of this negotiation process, in September 2018, Vanda submitted a new follow-on
52-week OLE protocol to the FDA (2302) for patients who had
completed the 2301 study. While waiting for further feedback, no
patients were ever enrolled in any study beyond 12 weeks. In
December 2018, the FDA imposed a
partial clinical hold (PCH) on two of Vanda's proposed clinical
studies of tradipitant, stating that Vanda is required first to
conduct additional chronic toxicity studies in canines, monkeys or
minipigs before allowing patients access in any clinical protocol
beyond 12 weeks. The original PCH was not based on any safety or
efficacy data related to tradipitant. Rather, the FDA informed
Vanda that these additional toxicity studies are required by a
guidance document.
In February 2019, Vanda filed a
lawsuit against the FDA in the United
States District Court for the District of Columbia (DC District Court),
challenging the FDA's legal authority to issue the PCH, and seeking
an order to set it aside. On February 14,
2019, the FDA filed a Motion for Voluntary Remand to the
Agency and for a Stay of the Case. On March
14, 2019, the DC District Court granted the FDA's request
for voluntary remand and returned the matter to the FDA for further
consideration. On April 26, 2019, the
FDA provided its remand response, in which it indicated that, after
re-evaluation, it believes a partial clinical hold continues to be
appropriate. After reviewing the FDA's remand response, Vanda
continues to believe that additional chronic toxicity studies are
unjustified, and that Vanda has provided the FDA with sufficient
information regarding the safety of tradipitant to justify the
continued study of tradipitant in patients beyond 12 weeks, in
accordance with applicable law and FDA regulations. On April 29, 2019, Vanda and the FDA filed a Joint
Motion for Extension of Time to Propose a Scheduling Order for this
matter. On April 30, 2019, the DC
District Court granted the motion, thereby extending the deadline
until May 3, 2019 for the FDA and
Vanda to file proposals regarding a scheduling order. Vanda intends
to continue vigorously pursuing its interests in the matter.
Vanda does not expect the PCH to have any impact on its ongoing
clinical studies in atopic dermatitis and motion sickness, each of
which is under 12 weeks in duration, or its planned 12-week Phase
III study in gastroparesis, none of which are subject to the PCH.
Nor does Vanda expect the PCH to impact the potential timing of a
New Drug Application (NDA) filing. If the matter has not been fully
resolved prior to the date on which Vanda is ready to file the
first NDA for tradipitant, then Vanda may choose to file with the
safety data it has available at that time. Vanda may pursue
additional studies of durations in excess of 12 weeks in countries
where the conduct of such studies may be permitted (or it may
choose to file for approval of a limited indication). If the FDA
determines that Vanda's NDA does not contain safety data sufficient
for approval, it may not accept the NDA for filing. Vanda will
continue to reassess the situation as events unfold.
Non-GAAP Financial Results
Non-GAAP net income was $3.0
million for the first quarter of 2019, or $0.06 per share, compared to a Non-GAAP net
income of $6.6 million, or
$0.14 per share, for the first
quarter of 2018.
Vanda provides Non-GAAP financial information, which it believes
can enhance an overall understanding of its financial performance
when considered together with GAAP figures. Refer to the sections
of this press release entitled "Non-GAAP Financial Information" and
"Reconciliation of GAAP to Non-GAAP Financial Information" for more
detailed information regarding Non-GAAP financial information.
2019 Financial Guidance
Vanda reiterates its prior 2019 financial guidance and expects
to achieve the following financial objectives in 2019:
Full Year
2019
Financial
Objectives
|
Full Year
2019
Guidance
|
Combined net product
sales
from both HETLIOZ® and
Fanapt®
|
$215 to $225
million
|
HETLIOZ®
net product sales
|
$137 to $143
million
|
Fanapt®
net product sales
|
$78 to $82
million
|
Year-end 2019
Cash
|
Greater than $260
million
|
Conference Call
Vanda has scheduled a conference call for today, Wednesday, May 1, 2019, at 4:30 PM ET. During the call, Vanda's
management will discuss the first quarter 2019 financial results
and other corporate activities. Investors can call 1-866-688-9426
(domestic) or 1-409-216-0816 (international) and use passcode
6195579. A replay of the call will be available on Wednesday, May 1, 2019, beginning at 7:00 PM ET and will be accessible until
Wednesday, May 8, 2019, at
11:59 PM ET. The replay call-in
number is 1-855-859-2056 for domestic callers and
1-404-537-3406 for international callers. The passcode number
is 6195579.
The conference call will be broadcast simultaneously on Vanda's
website, www.vandapharma.com. Investors should click on the
Investor Relations tab and are advised to go to the website at
least 15 minutes early to register, download, and install any
necessary software or presentations. The call will also be archived
on Vanda's website for a period of 30 days.
Non-GAAP Financial Information
Vanda believes that the Non-GAAP financial information provided
in this press release can assist investors in understanding and
assessing the ongoing economics of Vanda's business and reflect how
it manages the business internally and sets operational goals.
Vanda's "Non-GAAP Selling, general and administrative expenses" and
"Non-GAAP Research and development expenses" exclude stock-based
compensation. Vanda's "Non-GAAP Net income (loss)," "Non-GAAP Net
income (loss) per share" and "Non-GAAP Operating expenses excluding
Cost of goods sold" exclude stock-based compensation and intangible
asset amortization.
Vanda believes that excluding the impact of these items better
reflects the recurring economic characteristics of its business, as
well as Vanda's use of financial resources and its long-term
performance.
These Non-GAAP financial measures, as presented, may not be
comparable to similarly titled measures reported by other companies
since not all companies may calculate these measures in an
identical manner and, therefore, they are not necessarily an
accurate measure of comparison between companies.
The presentation of these Non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for
guidance prepared in accordance with GAAP. The principal limitation
of these Non-GAAP financial measures is that they exclude
significant elements that are required by GAAP to be recorded in
Vanda's financial statements. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by
management in determining these Non-GAAP financial measures.
In order to compensate for these limitations, Vanda presents its
Non-GAAP financial guidance in connection with its GAAP guidance.
Investors are encouraged to review the reconciliation of our
Non-GAAP financial measures to their most directly comparable GAAP
financial measure.
About Vanda Pharmaceuticals Inc.
Vanda is a global biopharmaceutical company focused on the
development and commercialization of innovative therapies to
address high unmet medical needs and improve the lives of
patients. For more on Vanda Pharmaceuticals Inc., please
visit www.vandapharma.com.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Various statements in this release, including, but not limited
to, the guidance provided under "2019 Financial Guidance" above,
are "forward-looking statements" under the securities laws.
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 Vanda's forward-looking
statements include, among others, Vanda's assumptions regarding its
ability to continue to grow its business in the U.S., Vanda's
ability to complete the clinical development and obtain regulatory
approval of tradipitant for the treatment of gastroparesis and/or
the treatment of chronic pruritus in atopic dermatitis, the outcome
of the lawsuit initiated by Vanda against the FDA relating to
tradipitant, the ability of HETLIOZ® to provide
significant benefit in the treatment of the symptoms of jet lag
disorder, Vanda's ability to obtain marketing approval for the use
of HETLIOZ® in the treatment of jet lag disorder,
Vanda's ability to complete the clinical development, submit an
sNDA and obtain regulatory approval of tasimelteon for the
treatment of sleep disorders in patients with SMS and other factors
that are described in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of Vanda's annual report on Form 10-K for the
fiscal year ended December 31, 2018,
which is on file with the SEC and available on the SEC's website
at www.sec.gov. Additional factors may be described in those
sections of Vanda's quarterly report on Form 10-Q for the quarter
ended March 31, 2019, to be filed
with the SEC in the second quarter of 2019. In addition to the
risks described above and in Vanda's annual report on Form 10-K and
quarterly reports on Form 10-Q, other unknown or unpredictable
factors also could affect Vanda's results. There can be no
assurance that the actual results or developments anticipated by
Vanda will be realized or, even if substantially realized, that
they will have the expected consequences to, or effects on, Vanda.
Therefore, no assurance can be given that the outcomes stated in
such forward-looking statements and estimates will be achieved.
All written and verbal forward-looking statements attributable
to Vanda or any person acting on its behalf are expressly qualified
in their entirety by the cautionary statements contained or
referred to herein. Vanda cautions investors not to rely too
heavily on the forward-looking statements Vanda makes or that are
made on its behalf. The information in this release is provided
only as of the date of this release, and Vanda undertakes no
obligation, and specifically declines any obligation, to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
VANDA
PHARMACEUTICALS INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except for share and per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March
31
|
|
March
31
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
HETLIOZ®product sales, net
|
|
|
$
|
28,957
|
|
$
|
25,423
|
|
|
Fanapt®product sales, net
|
|
|
|
18,756
|
|
|
18,169
|
|
|
|
Total
revenues
|
|
|
|
|
47,713
|
|
|
43,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
excluding amortization
|
|
|
5,113
|
|
|
4,560
|
|
|
Research and
development
|
|
|
|
13,278
|
|
|
9,416
|
|
|
Selling, general and
administrative
|
|
|
|
31,029
|
|
|
26,822
|
|
|
Intangible asset
amortization
|
|
|
|
380
|
|
|
352
|
|
|
|
Total operating
expenses
|
|
|
|
49,800
|
|
|
41,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
|
(2,087)
|
|
|
2,442
|
|
|
Other
income
|
|
|
|
|
1,485
|
|
|
622
|
|
Income (loss) before
income taxes
|
|
|
|
(602)
|
|
|
3,064
|
|
|
Provision (benefit)
for income taxes
|
|
|
|
10
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
|
$
|
(612)
|
|
$
|
3,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic
|
|
|
$
|
(0.01)
|
|
$
|
0.07
|
|
Net income (loss) per
share, diluted
|
|
|
$
|
(0.01)
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic
|
|
|
52,752,774
|
|
|
46,336,430
|
|
Weighted average
shares outstanding, diluted
|
|
|
52,752,774
|
|
|
48,225,041
|
|
VANDA
PHARMACEUTICALS INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31
2019 (1)
|
|
December 31
2018 (1)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
34,379
|
|
$
|
61,005
|
|
|
Marketable
securities
|
|
|
|
|
233,457
|
|
|
196,355
|
|
|
Accounts receivable,
net
|
|
|
|
26,346
|
|
|
28,780
|
|
|
Inventory
|
|
|
|
|
|
1,112
|
|
|
994
|
|
|
Prepaid expenses and
other current assets
|
|
|
11,204
|
|
|
11,998
|
|
|
|
Total current
assets
|
|
|
|
|
306,498
|
|
|
299,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
4,294
|
|
|
4,417
|
|
Operating lease
right-of-use assets
|
|
|
11,994
|
|
|
-
|
|
Intangible assets,
net
|
|
|
|
|
24,162
|
|
|
24,542
|
|
Non-current inventory
and other
|
|
|
|
4,218
|
|
|
4,039
|
|
|
|
Total
assets
|
|
|
|
$
|
351,166
|
|
$
|
332,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
27,423
|
|
$
|
21,584
|
|
|
Product revenue
allowances
|
|
|
|
31,852
|
|
|
31,231
|
|
|
Milestone obligations
under license agreements
|
|
|
|
|
-
|
|
|
200
|
|
|
|
Total current
liabilities
|
|
|
|
59,275
|
|
|
53,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
non-current liabilities
|
|
|
|
13,324
|
|
|
-
|
|
|
Other non-current
liabilities
|
|
|
|
162
|
|
|
3,693
|
|
|
|
Total
liabilities
|
|
|
|
|
72,761
|
|
|
56,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
53
|
|
|
52
|
|
|
Additional paid-in
capital
|
|
|
|
|
615,047
|
|
|
611,587
|
|
|
Accumulated other
comprehensive income
|
|
|
135
|
|
|
1
|
|
|
Accumulated
deficit
|
|
|
|
|
(336,830)
|
|
|
(336,218)
|
|
|
|
Total stockholders'
equity
|
|
|
|
278,405
|
|
|
275,422
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
351,166
|
|
$
|
332,130
|
(1)
|
With the adoption of
Accounting Standards Codification Subtopic ASC 842, Leases, on
January 1, 2019, Vanda recognized operating lease liabilities and
right-of-use assets. Prior period financial statements were not
recast for the new leasing standard. Please refer to footnote 2 in
the quarterly report on Form 10-Q for the quarter ended March 31,
2019, to be filed in the second quarter of 2019, for more
information.
|
VANDA
PHARMACEUTICALS INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
(in thousands,
except for share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March
31
|
|
March
31
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
Net income
(loss)
|
|
|
|
|
|
$
|
(612)
|
|
$
|
3,066
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
3,282
|
|
|
3,151
|
|
Intangible asset
amortization
|
|
|
|
380
|
|
|
352
|
|
Non-GAAP Net
income
|
|
|
|
$
|
3,050
|
|
$
|
6,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net income
per share, basic
|
|
|
$
|
0.06
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic
|
|
|
52,752,774
|
|
|
46,336,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
$
|
49,800
|
|
$
|
41,150
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
excluding amortization
|
|
|
(5,113)
|
|
|
(4,560)
|
|
Stock-based
compensation
|
|
|
|
(3,282)
|
|
|
(3,151)
|
|
Intangible asset
amortization
|
|
|
|
(380)
|
|
|
(352)
|
|
Non-GAAP Operating
expenses excluding
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
|
$
|
41,025
|
|
$
|
33,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
|
$
|
13,278
|
|
$
|
9,416
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
(728)
|
|
|
(321)
|
|
Non-GAAP Research and
development
|
|
|
$
|
12,550
|
|
$
|
9,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
$
|
31,029
|
|
$
|
26,822
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
(2,554)
|
|
|
(2,830)
|
|
Non-GAAP Selling,
general and administrative
|
|
$
|
28,475
|
|
$
|
23,992
|
|
COMPANY CONTACT:
Jim Kelly
Executive Vice President & Chief Financial Officer
Vanda Pharmaceuticals Inc.
(202) 734-3428
jim.kelly@vandapharma.com
View original
content:http://www.prnewswire.com/news-releases/vanda-pharmaceuticals-reports-first-quarter-2019-financial-results-300842166.html
SOURCE Vanda Pharmaceuticals Inc.