Vanda Ripe for Picking, or Dead on the Vine?

The bulls-eye view of Vanda Pharmaceuticals(VNDA Quote): The company's newly approved schizophrenia drug Fanapt will prove to be an irresistible acquisition target for a larger drug company seeking to tap into the $15 billion U.S. antipsychotic drug class.

And from the bears: Potential buyers will sniff at Fanapt but pass because health care reform, the looming threat of cheaper generics and the high cost of marketing a schizophrenia drug all conspire to make Fanapt a money-losing product.

Two divergent opinions of Vanda, each from a health care hedge fund analyst who spoke to me last week. Neither of them is allowed to be quoted publicly. ...