Vanda Surges on Study Results

The update is on experimental antipsychotic drug iloperidone.
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Shares of drug developer

Vanda Pharmaceuticals

(VNDA) - Get Report

jumped 66% Thursday after the company announced positive late-stage trial results on its experimental antipsychotic drug iloperidone.

Early results from a phase III study showed that the use of iloperidone led to a significant improvement in measures of schizophrenia symptoms when compared with a placebo, meeting the trial's main goal. The study involved 604 patients, testing the drug's safety and efficacy in general, as well as in patients with specific genetic profiles that the company expected were associated with an increased benefit from the drug.

The company identified a genetic aspect occurring in approximately 70% of schizophrenia patients that appears to correlate with a response to iloperidone, and trials confirmed that the drug was more effective in that specific group of patients. Phase III is the stage of trials conducted just before a drug is submitted to the Food and Drug Administration for marketing approval.

"We are extremely pleased to have achieved this outcome with iloperidone," said Dr. Paolo Baroldi, Vanda's Chief Medical Officer. "The success of this trial moves us one step closer to our

new drug application filing, expected in late 2007, and one step closer to making iloperidone available to patients and providers dealing with schizophrenia."

The severity of a patient's condition was quantified using what's known as the positive and negative symptom scale. Results from the most recent study confirmed those of prior studies.

Shares gained $10.32 to $25.82.