Vanda filed a $50 million shelf registration statement this week, leading some retail investors to speculate that the company was seeking to raise money in order to acquire Titan and increase its share of Fanapt revenue.
Given the poor commercial performance of Fanapt in 2010, a more likely scenario to play out in 2011 is that Novartis gives up on the drug. If Novartis returns Fanapt to Vanda, the company will lose an important revenue stream and will need to cash to sell the drug on its own. Buying Titan would be the last item on Vanda's to-do list.
Vanda shares were down 2% to $8.06 while Titan shares were off 7% to $1.55 in Friday trading.
--Written by Adam Feuerstein in Boston.
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