VNDA reported a net loss of $6.5 million for the first quarter of 2009, compared to $7.5 million for the fourth quarter of 2008. Total expenses for the first quarter of 2009 were $6.6 million, compared to $7.7 million for the fourth quarter of 2008. Research and development (R&D) expenses for the first quarter of 2009 were $2.3 million, compared to $3.6 million for the fourth quarter of 2008. The decrease in R&D expenses in the first quarter of 2009 relative to the fourth quarter of 2008 is primarily due to the decrease in regulatory consulting and other professional fees.

As of March 31, 2009, Vanda’s cash, cash equivalents, and marketable securities totaled approximately $42.6 million. As of March 31, 2009, a total of approximately 26.7 million shares of Vanda common stock were outstanding. Net loss per common share for the first quarter of 2009 was $0.24, compared to $0.28 for the fourth quarter of 2008.

OPERATIONAL HIGHLIGHTS

On November 6, 2008, Vanda submitted a Complete Response to the not approvable action letter that the Company received from the U.S. Food and Drug Administration (FDA) on July 25, 2008 regarding iloperidone. The FDA accepted the Complete Response for review and has set a new target action date of May 6, 2009. Pending a response from the FDA, Vanda is concentrating its efforts on the design and evaluation of clinical development options for tasimelteon, its compound for sleep and mood disorders, including Circadian Rhythm Sleep Disorders.

UPDATED VALUATION

On February 13, 2009, shareholder Kevin Tang, Managing Director of Tang Capital Partners LP, sent a letter VNDA’s board urging them to immediately cease operations and return all remaining cash to shareholders. Kevin Tang disclosed his 15% stake in VNDA along with his associates in an amended 13D notice. Mr. Tang has said he plans to nominate two members to the company’s board and seeks to replace the company’s CEO. If Tang’s attempt to liquidate the company is successful, shareholders would receive nearly $1.42/share cash return, a potential 40% gain relative to VNDA’s current market price of nearly $1/share.

 

Cash & Cash Equivalents: $42.6M

Total Liabilities: $3.9M

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Liquidation Value, excluding PPE: $38.7M ($1.42/share)

Current Market Price: $26.2M ($0.98/share)

 

 

 

Disclosure: We do not have an actual position in VNDA.