Two months after winning regulatory approval for a new schizophrenia therapy, analysts say that Vanda Pharmaceuticals is too weak financially to launch the drug by itself, leaving the developer ripe for a buyout offer. Corey Davis of Natixis Bleichroeder speculates that GlaxoSmithKline and Forest Laboratories are both likely bidders, at $25 to $30 a share. And at the very least, the analysts say, Vanda needs an ally with deep pockets to step in.
Leerink Swann & Co. is telling its clients that Vanda is essentially 'stalemated,' unpartnered on the drug and unable to launch it alone. And Chief Executive Officer Mihael Polymeropoulos has told Bloomberg that the company is open to "every option," including an acquisition.
The FDA initially rejected Fanapt, also known as iloperidone, prompting the company's largest shareholder to demand a liquidation. Now, though, the company's value has risen significantly. Vanda has recently reported positive data on the sleep drug VEC-162, though another program for VSF-173 failed to achieve statistical significance back in 2007.
- read the report from Bloomberg