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Vanda Pharmaceuticals Announces Withdrawal of Director Nominees and Proposal to Liquidate Submitted by Tang Capital
Date:5/7/2009

ROCKVILLE, Md., May 7 /PRNewswire-FirstCall/ -- Vanda Pharmaceuticals Inc. (Nasdaq: VNDA) ("Vanda" or the "Company") announced today that Tang Capital Partners, LP ("TCP") has ended its proxy contest by withdrawing its nominations of director candidates for election to Vanda's Board of Directors and its stockholder proposal to liquidate the Company. TCP had previously notified the Company of its intention to solicit proxies for the election of two of its candidates to the Vanda Board at the Company's 2009 Annual Meeting and for its proposal that the Board take action to liquidate the Company.

Kevin Tang, the managing director of the general partner of TCP, notified Vanda of TCP's intention not to pursue a proxy contest on May 6, 2009 in an email to Vanda's Chief Executive Officer, Mihael H. Polymeropoulos, M.D. and Chairman of the Board, Argeris N. Karabelas, Ph.D. TCP's withdrawal of its nominations and stockholder proposal follows Vanda's announcement that the U.S. Food & Drug Administration had granted marketing approval of its product, Fanapt(TM) (iloperidone), for the acute treatment of adult patients with schizophrenia.

About Vanda

Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and commercialization of clinical-stage products for central nervous system disorders. For more on Vanda, please visit http://www.vandapharma.com.

IMPORTANT INFORMATION/SOLICITATION PARTICIPANTS LEGEND

Vanda Pharmaceuticals Inc. and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Vanda in connection with the upcoming annual meeting of stockholders. Stockholders may obtain information regarding the names, affiliations
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SOURCE Vanda Pharmaceuticals Inc.
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