Business And Finance In Brief
Executive Summary
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)
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