Vanda Pharma today announced financial and operational results for the fourth quarter and full year ended December 31, 2017.
Full year 2017 total revenues grew to $165.1 million, a 13% increase compared to 2016 |
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WASHINGTON, Feb. 14, 2018 /PRNewswire/ -- Vanda Pharmaceuticals, Inc. (Nasdaq: VNDA) today announced financial and operational results for the fourth quarter and full year ended December 31, 2017. Key Highlights:
HETLIOZ® (tasimelteon)
Fanapt® (iloperidone)
Research and Development Tradipitant
HETLIOZ®
VTR-297 (histone deactetylase (HDAC) inhibitor)
Cash, cash equivalents and marketable securities (Cash) were $143.4 million as of December 31, 2017, representing an increase to Cash of $2.1 million during 2017. Non-GAAP Financial Results Non-GAAP net income was $1.4 million for the fourth quarter of 2017, or $0.03 per share, compared to a Non-GAAP net income of $3.6 million, or $0.08 per share, for the fourth quarter of 2016. Vanda Non-GAAP net loss was $3.4 million for the full year 2017, compared to a Non-GAAP net income of $1.5 million for the full year 2016. Vanda provides Non-GAAP financial information, which it believes can enhance an overall understanding of its financial performance when considered together with GAAP figures. Refer to the sections of this press release entitled "Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information" for more detailed information regarding Non-GAAP financial information. 2018 Financial Guidance Vanda expects to achieve the following financial objectives in 2018: Full Year 2018 Full Year 2018
Guidance
Financial Objectives
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Combined net product sales from
both HETLIOZ(R) and Fanapt(R) $180 to $200 million
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HETLIOZ(R) net product sales $108 to $118 million
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Fanapt(R) net product sales $72 to $82 million
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Non-GAAP Operating expenses,
excluding Cost of goods sold(1) $163 to $173 million
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Intangible asset amortization $1.7 million
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Stock-based compensation $11 to $15 million
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Year-end 2018 Cash(2) $115 to $125 million
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(1) Non-GAAP Operating expenses,
excludes Cost of goods sold,
intangible asset amortization and
stock-based compensation.
(2) Year-end 2018 Cash includes the
expected payment of a $25 million
milestone obligation based on
cumulative HETLIOZ(R) net product
sales.
Conference Call Vanda has scheduled a conference call for today, Wednesday, February 14, 2018, at 4:30 PM ET. During the call, Vanda's management will discuss the fourth quarter and full year 2017 financial results and other corporate activities. Investors can call 1-888-771-4371 (domestic) or 1-847-585-4405 (international) and use passcode 46291578. A replay of the call will be available on Wednesday, February 14, 2018, beginning at 7:00 PM ET and will be accessible until Wednesday, February 21, 2018, at 11:59 PM ET. The replay call-in number is 1-888-843-7419 for domestic callers and 1-630-652-3042 for international callers. The passcode number is 46291578. The conference call will be broadcast simultaneously on Vanda's website, www.vandapharma.com. Investors should click on the Investor Relations tab and are advised to go to the website at least 15 minutes early to register, download, and install any necessary software or presentations. The call will also be archived on Vanda's website for a period of 30 days. Non-GAAP Financial Information Vanda believes that the Non-GAAP financial information provided in this press release can assist investors in understanding and assessing the ongoing economics of Vanda's business and reflect how it manages the business internally and sets operational goals. Vanda's "Non-GAAP Selling, general and administrative expenses" and "Non-GAAP Research and development expenses" exclude stock-based compensation. Vanda's "Non-GAAP Net income (loss)," "Non-GAAP Net income (loss) per share" and "Non-GAAP Operating expenses excluding Cost of goods sold" exclude stock-based compensation and intangible asset amortization. Vanda believes that excluding the impact of these items better reflects the recurring economic characteristics of its business, as well as Vanda's use of financial resources and its long-term performance. This press release includes a projection of 2018 Non-GAAP Operating expenses, excluding Cost of goods sold, a forward-looking Non-GAAP financial measure under the heading "2018 Financial Guidance." This Non-GAAP financial measure is determined by excluding cost of goods sold, stock-based compensation and intangible asset amortization. Vanda is unable to reconcile this Non-GAAP guidance to GAAP because it is difficult to predict the future impact of these adjustments. These Non-GAAP financial measures, as presented, may not be comparable to similarly titled measures reported by other companies since not all companies may calculate these measures in an identical manner and, therefore, they are not necessarily an accurate measure of comparison between companies. The presentation of these Non-GAAP financial measures is not intended to be considered in isolation or as a substitute for guidance prepared in accordance with GAAP. The principal limitation of these Non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in Vanda's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management in determining these Non-GAAP financial measures. In order to compensate for these limitations, Vanda presents its Non-GAAP financial guidance in connection with its GAAP guidance. Investors are encouraged to review the reconciliation of our Non-GAAP financial measures to their most directly comparable GAAP financial measure. About Vanda Pharmaceuticals Inc. Vanda is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. For more on Vanda Pharmaceuticals Inc., please visit www.vandapharma.com. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS Various statements in this release, including, but not limited to, the guidance provided under "2018 Financial Guidance" above, are "forward-looking statements" under the securities laws. Forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Vanda's forward-looking statements include, among others, Vanda's assumptions regarding its ability to continue to grow its business in the U.S. through the HETLIOZ® to Psychiatrists Initiative, among other means, Vanda's ability to complete the clinical development and obtain regulatory approval of tradipitant for the treatment of atopic dermatitis, Vanda's ability to successfully commercialize HETLIOZ® in Europe and other factors that are described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Vanda's annual report on Form 10-K for the fiscal year ended December 31, 2016 and quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2017, which are on file with the SEC and available on the SEC's website at www.sec.gov. Additional factors may be described in those sections of Vanda's annual report on Form 10-K for the fiscal year ended December 31, 2017, to be filed with the SEC in the first quarter of 2018. In addition to the risks described above and in Vanda's annual report on Form 10-K and quarterly reports 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. VANDA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share amounts)
(unaudited)
Three Months Ended Year Ended
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December 31 December 31 December 31 December 31
2017 2016 2017 2016
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Revenues:
HETLIOZ(R) product sales, net $25,010 $19,295 $89,978 $71,671
Fanapt(R) product sales, net 19,266 18,949 75,105 74,346
Total revenues 44,276 38,244 165,083 146,017
Operating expenses:
Cost of goods sold excluding amortization 4,791 5,272 17,848 24,712
Research and development 10,154 7,614 38,547 29,156
Selling, general and administrative 31,049 23,907 123,841 99,787
Intangible asset amortization 432 2,105 1,750 10,933
Total operating expenses 46,426 38,898 181,986 164,588
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Loss from operations (2,150) (654) (16,903) (18,571)
Other income 399 154 1,472 665
Loss before income taxes (1,751) (500) (15,431) (17,906)
Provision for income taxes 87 104 136 104
Net loss $(1,838) $(604) $(15,567) $(18,010)
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Net loss per share, basic and diluted $(0.04) $(0.01) $(0.35) $(0.41)
Weighted average shares outstanding, basic and diluted 44,930,832 43,968,730 44,735,146 43,449,441
VANDA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31 December 31
2017 2016
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ASSETS
Current assets:
Cash and cash equivalents $33,627 $40,426
Marketable securities 109,786 100,914
Accounts receivable, net 17,601 20,268
Inventory 840 779
Prepaid expenses and other current assets 8,003 11,788
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Total current assets 169,857 174,175
Property and equipment, net 5,306 5,015
Intangible assets, net 26,069 27,819
Non-current inventory and other 4,193 3,365
Total assets $205,425 $210,374
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $20,335 $16,196
Accrued government and other rebates 23,028 34,124
Milestone obligations under license
agreements 27,000 -
Total current liabilities 70,363 50,320
Milestone obligations under license
agreements - 25,000
Other non-current liabilities 3,675 3,724
Total liabilities 74,038 79,044
Stockholders' equity:
Common stock 45 44
Additional paid-in capital 492,802 477,087
Accumulated other comprehensive income
(loss) (34) 58
Accumulated deficit (361,426) (345,859)
Total stockholders' equity 131,387 131,330
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Total liabilities and
stockholders' equity $205,425 $210,374
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VANDA PHARMACEUTICALS INC.
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands, except for share and per share amounts)
(unaudited)
Three Months Ended Year Ended
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December 31 December 31 December 31 December 31
2017 2016 2017 2016
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Net loss $(1,838) $(604) $(15,567) $(18,010)
Adjustments:
Stock-based
compensation 2,782 2,103 10,465 8,543
Intangible asset
amortization 432 2,105 1,750 10,933
Non-GAAP Net income (loss) $1,376 $3,604 $(3,352) $1,466
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Non-GAAP Net income (loss) per share,
basic $0.03 $0.08 $(0.07) $0.03
Weighted average shares outstanding, basic 44,930,832 43,968,730 44,735,146 43,449,441
Operating expenses $46,426 $38,898 $181,986 $164,588
Adjustments:
Cost of goods sold
excluding
amortization (4,791) (5,272) (17,848) (24,712)
Stock-based
compensation (2,782) (2,103) (10,465) (8,543)
Intangible asset
amortization (432) (2,105) (1,750) (10,933)
Non-GAAP Operating expenses excluding
Cost of goods sold $38,421 $29,418 $151,923 $120,400
Research and development $10,154 $7,614 $38,547 $29,156
Adjustment:
Stock-based
compensation (194) (535) (1,152) (2,087)
Non-GAAP Research and development $9,960 $7,079 $37,395 $27,069
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Selling, general and administrative $31,049 $23,907 $123,841 $99,787
Adjustment:
Stock-based
compensation (2,588) (1,568) (9,313) (6,456)
Non-GAAP Selling, general and
administrative $28,461 $22,339 $114,528 $93,331
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COMPANY CONTACT: View original content:http://www.prnewswire.com/news-releases/vanda-pharmaceuticals-reports-fourth-quarter-2017-and-full-year-2017-financial-results-300598894.html SOURCE Vanda Pharmaceuticals Inc. |
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Company Codes: NASDAQ-NMS:VNDA |
