Vanda Pharmaceuticals Reports First Quarter 20...(Circadian Rhythm Sleep Disorders. ...)

FINANCIAL DETAILS

* Operating Expenses. First quarter 2009 R&D expenses of $2.3 million,

consisted primarily of $0.5 million of salaries and benefits and

$0.2 million of non-cash stock based compensation costs for R&D

personnel, as well as $0.8 million of regulatory consultant fees,

and $0.2 million of pre-clinical work. This compares to

$3.6 million for the fourth quarter of 2008 and $11.1 million for

the first quarter of 2008. The decrease in R&D expenses in the first

quarter of 2009 relative to the fourth quarter of 2008 is primarily

due to the decrease in regulatory consulting and other professional

fees related to iloperidone. The decrease in R&D expenses in the

first quarter of 2009 relative to the first quarter of 2008 is

primarily due to the completion in the second quarter of 2008 of the

Phase III clinical trial for tasimelteon in chronic primary

insomnia.

General and administrative (G&A) expenses of $4.2 million for the

first quarter of 2009 consisted primarily of $0.5 million of

salaries and benefits and $2.1 million of non-cash stock based

compensation costs for G&A personnel, as well as $0.7 million of

legal fees, and $0.2 million of insurance costs. This compares to

$4.1 million for the fourth quarter of 2008 and $9.0 million for the

first quarter of 2008. The increase in G&A expenses in the first

quarter of 2009 relative to the fourth quarter of 2008 is primarily

due to an increase in legal and professional fees offset by a

decrease in stock-based compensation costs. The decrease in
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