Business And Finance In Brief
Vanda prepares for Fanapt launch in Q4: Vanda Pharmaceuticals is gearing up to launch its atypical antipsychotic Fanapt (iloperidone) in the fourth quarter 2009 and plans to raise the necessary capital via one or more partnerships, execs told investors on an earnings call Aug. 10. The biotech believes it has sufficient cash to fund commercialization of Fanapt through 2009, but is evaluating alternatives to keep funds flowing thereafter. Already Vanda's been the recipient of Novartis' largesse: as Fanapt's previous sponsor, Novartis was owed a $12 million royalty when FDA approved the drug in May. But Novartis agreed to let Vanda pay $7 million instead - with $5 million still due - to maximize the smaller company's short-term finances. Execs expect Fanapt to be priced in line with other antipsychotics, around $450 per month. Because these drugs belong to a protected class under Medicare Part D, insurance plans must cover all - or substantially all - costs of these drugs (1"The Pink Sheet," May, 18, 2009)
You may also be interested in...
WuXi PharmaTech Marks Second Quarter Of Earnings Rebound Following 2008's Devastating Loss, Opens New Drug Safety Testing Center
BEIJING - After recording a massive loss for 2008, WuXi PharmaTech, China's leading pharmaceutical contract research organization, posted a second consecutive quarter of earnings growth in the April-June period of this year
Jazz Pharmaceuticals' stock price increased 39 percent on June 25, following the second announcement in a week of a successful Phase III trial for its fibromyalgia candidate, JZP-6 (sodium oxybate). The company's share price quickly retreated, dropping 56 cents on June 26 after analysts at Barclay's Capital downgraded the company because of concerns related to its financial health. Still the 21 percent increase in share value could position the specialty pharma to raise badly needed funds, given it has dwindling cash and defaulted on two recent quarterly interest payments on outstanding debt
Launching a "me too" product with a serious safety risk in a crowded field is not an easy task. But with the right profile and the right expectations, Vanda may have found the perfect entry point for its atypical antipsychotic Fanapt (iloperidone)