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Vanda Pharmaceuticals Reports Fourth Quarter and Full Year 2007 Results
Date:2/14/2008

upplies

associated with the company's clinical trials and research initiatives,

were $12.6 million, down from $13.9 million in the previous quarter and

up from $7.9 million in the fourth quarter of 2006. The decrease in R&D

expenses between the third and fourth quarters of 2007 is primarily

attributable to an increase in VEC-162 Phase III chronic insomnia

clinical trial costs being offset by a non-recurring third quarter

milestone charge of $5.0 million for the Fiapta(TM) NDA submission in

September 2007. The increase in R&D expenses in the fourth quarter of

2007 relative to the fourth quarter of 2006 is primarily attributable

to the same VEC-162 Phase III chronic insomnia clinical trial that was

initiated in late 2007. For the full year of 2007, total R&D expenses

were $47.2 million, down from $52.1 million in the full year of 2006.

Lower R&D expenses in 2007 resulted from the substantial completion of

the Fiapta(TM) Phase III clinical program in 2006.

General and administrative (G&A) expenses totaled $9.5 million in the

fourth quarter of 2007, down slightly from $9.6 million in the third

quarter of 2007, and up from $4.5 million in the fourth quarter of

2006. The increase in G&A expenses in the fourth quarter of 2007

relative to the fourth quarter of 2006 is primarily due to increased

Fiapta(TM) pre-launch commercial activities, stock-based compensation

charges, salaries and related costs of non-R&D personnel, insurance and

facility expenses. For the full year of 2007, total G&A expenses were

$32.8 million, up from $13.6 million in the prior year. The increase

in G&A expenses is primarily due to increased salaries, benefits and

stock-based compensation expense, increased business and commercial

development expenses, and higher insu
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SOURCE Vanda Pharmaceuticals Inc.
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