NEW YORK (AP) ¿ Shares of Vanda Pharmaceuticals Inc. skyrocketed in premarket trading Thursday after the company said regulators approved its schizophrenia drug Fanapt.

Rockville, Md.-based Vanda plans to begin shipping the drug to pharmacies later this year. The news sent Vanda shares surging nearly tenfold to $11.25 from $1.08. The stock last traded above $11 in November 2007, and has not been above $6.59 in the last year.

Fanapt, or iloperidone, was more effective than a sugar pill in controlling symptoms of schizophrenia in clinical testing. The drug is an atypical antipsychotic, a group of relatively new drugs. Other drugs in the group include risperidone, which Johnson & Johnson markets as Risperdal, and Eli Lilly & Co.'s Zyprexa.

Approval for the drug was delayed in July because the Food and Drug Administration concluded Fanapt was too similar to drugs already on the market. The agency also required more testing at the time.

The most common side effects for Fanapt in clinical testing were dizziness, dry mouth, fatigue, nasal congestion, sleepiness, low blood pressure, rapid heartbeat, and mild weight gain.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.