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Vanda Pharmaceuticals Reports Third Quarter 2007 Results
Date:11/8/2007

Submits Iloperidone New Drug Application (NDA); Begins Phase III Chronic Insomnia Study for VEC-162; Reports Results in VSF-173 Phase II Proof of

Concept Trial; Updates Full Year 2007 Financial Guidance

ROCKVILLE, Md., Nov. 8 /PRNewswire-FirstCall/ -- Vanda Pharmaceuticals Inc. (Nasdaq: VNDA), a biopharmaceutical company focused on the development and commercialization of clinical-stage product candidates for central nervous system disorders, today announced financial and operational results for the third quarter ended September 30, 2007.

Vanda reported research and development (R&D) expenses in the third quarter of 2007 of $13.9 million, compared to second quarter of 2007 R&D expenses of $10.2 million and third quarter of 2006 R&D expenses of $9.5 million. The increase in R&D expenses in the third quarter of 2007 relative to the second quarter of 2007 is primarily attributable to a $5.0 million milestone charge resulting from the submission of the iloperidone NDA, which was partially offset by lower clinical trial costs associated with the completion of the long-term open label portion of the Phase III trial for iloperidone. The increase in R&D expenses in the third quarter of 2007 relative to the third quarter of 2006 was also primarily attributable to the $5.0 million NDA milestone charge, which was partially offset by lower clinical trial expenses for the company's iloperidone and VEC-162 Phase III trials that were primarily completed in 2006. Total expenses for the third quarter of 2007 were $23.5 million, compared to $17.6 million in the second quarter of 2007 and $12.8 million in the third quarter of 2006.

Net loss applicable to common stockholders was $21.9 million for the third
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SOURCE Vanda Pharmaceuticals Inc.
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