ROCKVILLE, Md. (AP) – Vanda Pharmaceuticals Inc. said that its profit fell 74 percent in the first quarter as it booked sharply lower royalty revenue and no product sales.
The company earned $136,000, or broke even on a per-share basis. That’s down from $529,000, or 2 cents per share, during the same period a year prior.
Revenue fell 40 percent to $7.5 million from $12.4 million. Royalty revenue fell 57 percent to $895,000, compared with compared with a year prior, when wholesalers stocked the schizophrenia drug Fanapt, Vanda’s first drug, at its launch. The prior year results also included one-time product sales of Fanapt.
Licensing agreement revenue remained flat at about $6.6 million. Novartis AG markets Fanapt in the U.S. and Canada, and most of Vanda’s revenue derives from a $200 million payment from the Swiss drugmaker that Vanda is recording gradually.
Analysts polled by FactSet had expected the company to break even on a per-share basis and report higher revenue of $8.2 million.
Vanda expects to file for European regulatory approval of oral Fanapt in the second half of 2011 as it tried to expand the drug’s availability to other markets.
Date: May 5, 2011
Source: Associated Press