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New Insights into the Mechanism of Action of Antipsychotic Drugs

ROCKVILLE, Md., March 10, 2009 /PRNewswire-FirstCall/ -- Vanda Pharmaceuticals Inc. reports the publication in , the official journal of the Schizophrenia International Research Society, of a manuscript entitled "Common effect of antipsychotics on the biosynthesis and regulation of fatty acids and cholesterol supports a key role of lipid homeostasis in schizophrenia" (1).

This publication highlights the discovery of a major effect of antipsychotics that sheds new light on how these drugs work. Vanda researchers analyzed the mechanism of action of 18 antipsychotics at the molecular level and discovered that they regulate specific genes that control the production and transport of lipids. These findings suggest that antipsychotic drugs may alter the fluidity of cell membranes of neurons, which could result in changes in neuronal connectivity. The antipsychotics tested included Vanda's antipsychotic iloperidone, currently under review by the U.S. Food and Drug Administration (FDA) for the treatment of schizophrenia.

"This exciting discovery demonstrates Vanda's commitment in understanding the molecular mechanism of drugs with a goal of improving therapeutic solutions for patients" said Mihael H. Polymeropoulos, MD, Vanda's Chief Executive Officer.

(1) Polymeropoulos M.H. et al., "Common effect of antipsychotics on the biosynthesis and regulation of fatty acids and cholesterol supports a key role of lipid homeostasis in schizophrenia." Schizophr Res. 2009 Mar; 108(1-3):134-42.

Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and commercialization of clinical-stage product candidates for central nervous system disorders. For more on Vanda Pharmaceuticals Inc., please visit http://www.vandapharma.com.

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. Vanda is at an early stage of development and may not ever have any products that generate significant revenue. Important factors that could cause actual results to differ materially from those reflected in the company's forward-looking statements include, among others: delays in the completion of Vanda's clinical trials; a failure of Vanda's product candidates to be demonstrably safe and effective; Vanda's failure to obtain regulatory approval for its products or to comply with ongoing regulatory requirements; a lack of acceptance of Vanda's product candidates in the marketplace, or a failure to become or remain profitable; Vanda's inability to obtain the capital necessary to fund its research and development activities; Vanda's failure to identify or obtain rights to new product candidates; Vanda's failure to develop or obtain sales, marketing and distribution resources and expertise or to otherwise manage its growth; a loss of any of Vanda's key scientists or management personnel; losses incurred from product liability claims made against Vanda; a loss of rights to develop and commercialize Vanda's products under its license and sublicense agreements and other factors that are described in the "Risk Factors" section (Part II, Item 1A) of Vanda's quarterly report on Form 10-Q for the quarter ended September 30, 2008 (File No. 000-51863). In addition to the risks described above and in Part II, Item 1A of Vanda's quarterly report 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.

CONTACT: Stephanie R. Irish, Acting Chief Financial Officer of VandaPharmaceuticals Inc., +1-240-599-4500

Web site: http://www.vandapharma.com/

Ticker Symbol: (NASDAQ-NMS:VNDA)

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Posted: March 2009

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