Vanda Pharmaceuticals ($VNDA) has come out at the other end of its dispute with former partner Novartis ($NVS), getting back the rights to its schizophrenia drug and banking an equity investment from the Swiss drugmaker.
In 2009, Novartis bought the U.S. and Canadian rights to Vanda's Fanapt in a deal worth up to $465 million, working to crack the market with what many perceived as a me-too drug. Fanapt never lived up to the partners' hopes, however, and the deal bubbled over into a dispute this May, with Vanda demanding $539 million and Novartis responding with a counter claim.
Now, under the pair's final agreement, Vanda regains the full rights to Fanapt, and Novartis has agreed to make a $25 million investment in the company. Vanda also gets a worldwide exclusive license to Novartis' AQW051, a Phase II treatment for schizophrenia.
The deal "has the potential to be transformational for our company," CEO Mihael Polymeropoulos said in a statement, and the news sent Vanda's shares soaring more than 20% on Tuesday morning.
Beyond Fanapt, Vanda's portfolio includes Hetlioz, approved early this year to treat a sleep disorder called non-24, and VLY-686, an anti-itching drug.
- read the statement