Date:2/11/2009

2008 2007 ASSETS Current assets: Cash and cash equivalents $39,079,304 $41,929,533 Marketable securities 7,378,798 43,243,960 Prepaid expenses, deposits and other current assets 1,287,400 1,781,881 Total current assets 47,745,502 86,955,374 Marketable securities, long-term - 7,979,331 Property and equipment, net 1,758,111 1,345,845 Deposits - 150,000 Restricted cash 430,230 430,230 Total assets $49,933,843 $96,860,780 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $512,382 $2,988,069 Accrued expenses 2,898,417 9,789,738 Total current liabilities 3,410,799 12,777,807 Long-term liabilities: Deferred rent 502,770 354,042 Total liabilities 3,913,569 13,131,849 Stockholders' equity: Common stock 26,653 26,653 Additional paid-in capital 270,988,157 257,600,368 Accumulated other comprehensive income (loss) (20,029) 12,176 Deficit accumulated during the development stage (224,974,507) (173,910,266) Total stockholders' equity 46,020,274 83,728,931 Total liabilities and stockholders' equity $49,933,843 $96,860,780 VANDA PHARMACEUTICALS INC. (A Development Stage Enterprise) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Year Ended
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