ROCKVILLE, Md., Feb. 10, 2011 /PRNewswire/ -- Vanda Pharmaceuticals Inc. (Vanda) (Nasdaq: VNDA), a biopharmaceutical company focused on the development and commercialization of products for central nervous system disorders, today announced financial and operational results for the fourth quarter and full year ended December 31, 2010.
"2010 has been an exceptional milestone year in the history of our company. Our first product, Fanapt®, reached the U.S. market for the treatment of schizophrenia, we had our first profitable year and we have advanced our second asset, tasimelteon, in Phase 3 studies," said Mihael Polymeropoulos, M.D., President and Chief Executive Officer. "2011 will be a foundation year for Vanda, as we begin to execute upon our vision of building a world class neuroscience pharmaceutical company."
Key Highlights:
- Vanda recorded 2010 revenue of $35.2 million including royalties and product sales of $8.4 million.
- Cash and cash equivalents plus marketable securities at year end 2010 were $198.0 million as compared to $205.3 million at year end 2009.
- Monthly prescriptions of Fanapt®, as reported by IMS, increased from over 6,000 in September of 2010 to over 8,000 in December of 2010. For the full year 2010, more than 55,000 prescriptions have been written.
- Tasimelteon efficacy and safety studies are ongoing in both the U.S. and Europe.
- On November 15, 2010, Vanda received a private letter ruling (PLR) from the Internal Revenue Service (IRS) clarifying the company's ability to utilize net operating loss carryforwards for tax purposes.
Full Year 2010 Reported Results
Total revenues for the full year 2010 were $35.2 million, compared to $4.5 million for the same period in 2009. 2010 revenues included $26.8 million recognized from the $200.0 million upfront payment previously received from Novartis for Fanapt® U.S. and Canadian rights. Total operating expenses for 2010 were $26.9 million, compared to $40.5 million for 2009. The lower 2010 spend is primarily related to decreased business development consulting fees and lower non-cash stock based compensation for the period.
Net income was $7.2 million for 2010, compared to a net loss of $35.9 million for 2009. Diluted earnings per share for 2010 was $0.25, compared to a net loss per share of $1.33 for 2009. Vanda's cash, cash equivalents, and marketable securities as of December 31, 2010 totaled $198.0 million.
Fourth Quarter 2010 Reported Results
Total revenues for the fourth quarter of 2010 were $7.3 million, compared to $4.5 million for the same period in 2009. Fourth quarter 2010 revenues include $0.5 million related to Fanapt® royalties received from Novartis. Total operating expenses for the fourth quarter of 2010 were $7.0 million, compared $13.8 million for the fourth quarter of 2009. The primary drivers of the lower 2010 spend were the one time nature of Fanapt® product cost of goods sold in 2009 and the previously mentioned decrease in business development expenses.
Net income was $2.2 million for the fourth quarter of 2010, compared to a net loss of $9.2 million for the fourth quarter of 2009. Diluted earnings per share for the fourth quarter of 2010 was $0.08, compared a net loss per share of $0.34 for the fourth quarter of 2009.
Full Year December 31, 2010 Key Financial Figures(1) | ||||||||
Twelve Months Ended | ||||||||
December 31 | December 31 | |||||||
(in thousands, except per share amounts) | 2010 | 2009 | Change ($) | Change (%) | ||||
Total revenues | $ 35,220 | $ 4,548 | $ 30,672 | 674% | ||||
Research & development expenses | 12,338 | 13,874 | (1,536) | -11% | ||||
General & administrative expenses | 10,147 | 23,724 | (13,577) | -57% | ||||
Non-cash stock-based compensation | 4,981 | 11,230 | (6,249) | -56% | ||||
Net income (loss) before tax provision | 9,269 | (35,859) | 45,128 | 126% | ||||
Tax provision | 2,077 | - | 2,077 | NA | ||||
Net income (loss) | 7,192 | (35,859) | 43,051 | 120% | ||||
Diluted net income (loss) per share | $ 0.25 | $ (1.33) | $ 1.58 | 119% | ||||
Fourth Quarter 2010 Key Financial Figures(1) | ||||||||
Three Months Ended | ||||||||
December 31 | September 30 | |||||||
(in thousands, except per share amounts) | 2010 | 2010 | Change ($) | Change (%) | ||||
Total revenues | $ 7,263 | $ 7,246 | $ 17 | 0% | ||||
Research & development expenses | 3,822 | 4,072 | (250) | -6% | ||||
General & administrative expenses | 2,762 | 2,054 | 708 | 34% | ||||
Non-cash stock-based compensation | 1,335 | 887 | 448 | 51% | ||||
Net income before tax provision | 933 | 899 | 34 | 4% | ||||
Tax benefit | (1,266) | (2,285) | 1,019 | 45% | ||||
Net income | 2,199 | 3,184 | (985) | -31% | ||||
Diluted net income per share | $ 0.08 | $ 0.11 | $ (0.03) | -27% | ||||
Select Balance Sheet Data(1) | ||||||||
December 31 | September 30 | December 31 | ||||||
(in thousands, except per share amounts) | 2010 | 2010 | 2009 | |||||
Total cash and marketable securities | $ 198,037 | $ 202,060 | $ 205,295 | |||||
