Ebb & Flow

What a difference a product approval makes. Activist investor Kevin Tang terminated his threatened proxy battle with Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) and withdrew his proposal to liquidate the company after FDA approved the biotech's Fanapt iloperidone to treat schizophrenia last week.

FDA had issued a not approvable letter in July 2008, which the company had initially expected would require an additional two years of testing to address...