UPDATE 1-Vanda says FDA accepts schizophrenia drug response

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Nov 20 (Reuters) - Vanda Pharmaceuticals Inc (VNDA.O) said U.S. health regulators accepted the complete response for its experimental schizophrenia drug, iloperidone, sending its shares up 40 percent in pre-market trade.

The company, which received a not-approvable letter for the drug from the U.S. Food and Drug Administration in July, said the FDA has set May 6 as a new target action date to complete the review of the drug. Shares of the company were trading at 95 cents before the bell, up from their Wednesday close of 68 cents on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Pratish Narayanan)