This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Vanda Schizophrenia Drug Gets Rotten Review

ROCKVILLE, Md. ( TheStreet) -- Vanda Pharmaceuticals' (VNDA - Get Report) schizophrenia drug Fanapt gets rough treatment this week from the expert authors of the newly updated psychiatrists' bible.

A negative-leaning summary of Fanapt's clinical data in schizophrenia is included for the first time in the seventh edition of the Manual of Clinical Psychopharmacology, published this week by the American Psychiatric Association.

The authors of the manual raise concerns about Fanapt's dosing, side effects and high cost compared to other drugs used to treat patients with schizophrenia.

"It is unclear to us exactly where iloperidone is going to fit in the treatment of schizophrenia," the manual's authors conclude, using the scientific name for Fanapt.

A conclusion like that in an influential psychiatric reference book is not likely to help Novartis (NVS - Get Report) as it tries to sell Fanapt to doctors who have ample choices in the hyper-competitive schizophrenia drug market.

Novartis did not respond to a request for comment on the Fanapt summary in the Manual of Clinical Psychopharmacology.

Vanda developed Fanapt and got the drug approved in May 2009. In October 2009, Novartis paid Vanda $200 million for the right to sell Fanapt in the U.S. The drug was launched in January. Doctors have been slow to prescribe the Fanapt, however, according to IMS prescription tracking data.

Novartis announced first-quarter Fanapt revenue of $21 million, but wholesaler inventory stocking accounted for most of that amount. Novartis did not break out Fanapt's end-user sales from inventory stocking in its first-quarter financial report. David Moskowitz, drug analyst at Madison Williams, estimates that Novartis only sold about $1 million of Fanapt to schizophrenia patients in the first quarter based on his analysis of the IMS data.

Like Vanda, Titan Pharmaceuticals (TTNP.PK) also receives royalties based on Fanapt sales so it is similarly affected by the outcome of drug's commercial push.

The Manual of Clinical Psychopharmacology, first published in 1986, is the standard drug reference guide used by psychiatrists. The manual is written by three noted psychopharmacologists to provide clinical reviews and practical advice for the use of drugs in the treatment of psychiatric disease.

The manual's discussion of Fanapt, which belongs to the class of drugs known as second-generation antipsychotics (SGA), is not all kind.

The FDA approved Fanapt in 2009 "unexpectedly" after first rejecting the drug in 2007 due to efficacy and safety concerns, the authors state. The Fanapt entry notes two, phase III studies established Fanapt's efficacy, but then follows with a lengthy discussion of the drug's side effects and dosing issues.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
JNJ $102.34 -0.85%
NVS $99.06 -1.01%
MRK $58.34 -0.41%
PFE $34.56 -0.60%
VNDA $10.89 0.00%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs