Net loss for the year is expected to be approximately $56 million, or approximately $2.10 per share. Non-cash charges for 2008, consisting primarily of stock-based compensation expense and depreciation and amortization, are expected to total approximately $16.5 million. The total cash balance at December 31, 2008 is expected to be approximately $44 million.
Fourth quarter cash expenditures, consisting primarily of
administrative overhead, personnel costs, costs to complete ongoing
carcinogenicity studies, costs to complete stability studies for
iloperidone, regulatory consulting fees, and commercial discontinuation
costs, are expected to total approximately $7.5 million. To reduce
expenses, Vanda has taken the following actions:
-- Reduced headcount from 52 full-time employees as of June 30, 2008 to 44
full-time employees as of October 30, 2008. In addition, Vanda has
eliminated four full-time contract commercial positions.
-- Discontinued all commercial activities.
-- Suspended all non-essential manufacturing and pre-clinical activities.
As a result of these initiatives, Vanda expects its operating cash burn to decrease to approximated $3.6 million per quarter beginning in the first quarter of 2009. These expenditures will consist primarily of administrative overhead, personnel costs, costs to complete an ongoing carcinogenicity study and regulatory consulting fees.
Vanda is also evaluating its development pipeline and a number of options to further reduce expenses and cash burn. Vanda will provide additional guidance as soon as its plans are more definitive.
ABOUT VANDA PHARMACEUTICALS INC.:
Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on
the development and commercialization of clinical-stage product candidates
for central nervous system disorders. For more on Vanda Pharmaceuticals
Inc., please visit http://www.
|SOURCE Vanda Pharmaceuticals Inc.|
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