Back from the dead?

It doesn't seem that long ago that Vanda was left for dead after disappointing results in several key clinical trials. Then came the FDA's approval of its schizophrenia medication, Fanapt (for a refresher, see this link) in May that really was a propitious boost for the company's assets. Now we're in October and it was just announced that Novartis has agreed to partner with Vanda to not only market the oral formulation of Fanapt, but also help develop and market an injectable version as well. What's going on here? Does it seem odd that there could be such an intense 180 degree turn in fortune for this company?

I think it does, which is why I'm not sold on these developments. It seems almost too good to be true for Vanda, given the state they were in 18 months ago. I don't think that Fanapt is enough to keep Vanda's head above water for long because the company's other listed drug, Tasimelteon, does not really seem like a blockbuster in any way. Vanda could could be ripe for a buyout if Fanapt does well, but I'm holding my ground for now.

Two pieces of information for you to digest while this gets sorted out:

Vanda Press Release courtesy of Fierce Biotech

Vanda Development Pipeline