Vanda Pharma cuts staff, halts development work

Three months after getting hit by the FDA with a "not approvable" letter, Vanda Pharmaceuticals says that it has cut its staff and suspended all commercial and development activities. Vanda terminated eight staffers and four contract workers, leaving 44 on the payroll, according to its quarterly report. And Vanda says it's looking at other ways to cut costs as well.

Vanda's trouble dates back to July, when the FDA turned down its application for the schizophrenia drug iloperidone. The Rockville, MD-based Vanda said in a release that it expects to send a complete response letter to the FDA in response to the agency's request. "The timing or outcome of any FDA review of the response is uncertain at this time."

As of September 30, 2008, Vanda's cash, cash equivalents, and marketable securities totaled approximately $51.7 million.

- read the Vanda release
- read the story from the Washington Business Journal

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