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UPDATE 1-Vanda posts wider-than-expected Q4 loss
February 16, 2010 / 1:37 PM / 8 years ago

UPDATE 1-Vanda posts wider-than-expected Q4 loss

* Q4 loss $0.34/shr vs est loss $0.16/shr

* G&A expenses rise 124 pct

Feb 16 (Reuters) - Vanda Pharmaceuticals Inc (VNDA.O) posted a wider-than-expected quarterly loss, hurt by expenses related to its deal with Novartis NOVN.VX for its schizophrenia drug.

For the fourth quarter, Vanda reported a net loss of $9.2 million, or 34 cents a share, compared with a loss of $7.5 million, or 28 cents a share, in the year-ago period.

Revenue for the latest quarter was $4.5 million.

Analysts on average were expecting a loss of 16 cents a share and revenue of $3.3 million for the quarter, according to Thomson Reuters I/B/E/S.

General and administrative expenses, including the costs related to the Novartis transaction, rose to $9.2 million from $4.1 million in the year-ago period.

In October, the Swiss drug maker agreed to pay $200 million to acquire the rights to sell Vanda’s schizophrenia drug Fanapt in the United States and Canada.

The company said revenue related to the payment from Novartis will be recognized ratably -- $2.2 million per month -- through May 2017.

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Shares of the company closed at $10.63 Friday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Aradhana Aravindan)

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