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Vanda 4Q Loss Widens On Expenses

From Associated Press (February 16, 2010)

ROCKVILLE, Md. -- Vanda Pharmaceuticals said Tuesday its fourth-quarter loss widened with the company hit hard by expenses from a deal with Novartis for its schizophrenia drug.

Expenses more than doubled overall from $4.1 million to $9.2 million. Of those expenses, $3.7 million was related to consulting and advisory fees tied to the Novartis deal.

The biotechnology company during the quarter lost $9.2 million, or 34 cents per share, compared with a loss of $7.5 million, or 28 cents per share, during the year-ago period.

Vanda had $4.5 million in revenue.

Analysts polled by Thomson Reuters expected a loss of 16 cents per share.

Operating expenses rose 80 percent to $13.8 million, mainly on higher general and administrative costs.

The company makes treatments for central nervous system disorders. In May, the Food and Drug Administration approved the company’s schizophrenia drug Fanapt, which is being sold in the U.S. by Novartis.

For the full year, the company lost $35.9 million, or $1.33 per share, compared with a loss of $51.1 million, or $1.92 per share. Vanda had $4.5 million in revenue for the year.

Shares of Vanda Pharmaceuticals Inc. closed Friday at $10.63. Monday was a holiday.

Posted: February 2010