BioCentury
ARTICLE | Company News

Vanda climbs on Fanapt settlement

December 24, 2014 2:52 AM UTC

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) rose $1.67 (14%) to $13.58 on Tuesday after it reacquired exclusive U.S. and Canadian rights to Fanapt iloperidone from Novartis AG (NYSE:NVS; SIX:NOVN). The deal settled a licensing dispute between the two companies, in which Vanda had begun an arbitration proceeding in May seeking $539 million from Novartis.

Vanda will regain territorial rights on Dec. 31 to the serotonin (5-HT2) receptor and dopamine receptor antagonist, which is approved in the U.S. to treat schizophrenia. In 2009, Novartis paid Vanda $200 million up front for U.S. and Canadian rights to Fanapt (see BioCentury Extra, Oct. 12, 2009). ...