Court advances Vanda Pharmaceuticals patent case By Investing.com

WASHINGTON – Vanda (NASDAQ:) Pharmaceuticals Inc. (NASDAQ:VNDA) received a favorable ruling on Monday as the U.S. District Court for the District of Delaware allowed its patent lawsuit concerning the drug HETLIOZ® to move forward, denying judgment motions from defendants Teva Pharmaceuticals USA, Inc. and Apotex Inc. and Apotex Corp.

The legal dispute, initiated by Vanda in December 2022, revolves around allegations of patent infringement by the two pharmaceutical companies. Teva and Apotex sought an early judgment in April 2023, which the Court rejected on June 27, 2024, citing differences from previous litigation and the need for further examination of the claims.

The Court’s decision to deny the motions suggests that the Defendants’ challenges to the patent’s validity necessitate a more detailed review, including claim construction and factual development.

As a result, Vanda plans to proceed with the discovery phase of the lawsuit, aiming to secure an order that would prevent Teva and Apotex from marketing their generic versions of HETLIOZ® until the patent expires. Moreover, Vanda seeks to enjoin the Defendants from manufacturing, using, importing, offering for sale, or selling the products in question.

Vanda is a global biopharmaceutical company that focuses on developing innovative treatments to meet significant unmet medical needs and enhance patient lives. HETLIOZ® is one of the drugs in their portfolio, with complete prescribing information available on their website.

The press release includes forward-looking statements regarding Vanda’s intentions and expectations for the lawsuit’s outcomes. Still, these statements are subject to risks and uncertainties, and there is no guarantee that the company’s desired results will be achieved.

This news report is based on a press release statement from Vanda Pharmaceuticals Inc. The company has not provided any further comments beyond the information contained in the press release.

In other recent news, Vanda Pharmaceuticals has been the subject of multiple acquisition proposals. The company rejected offers from UK-based Cycle Pharmaceutical and contract manufacturer Future Pak, stating that the bids undervalued the company and did not align with shareholder interests. Future Pak’s revised offer included a cash component of $8.50 to $9.00 per share, while Cycle Pharma proposed a buyout at $8 per share in cash, valuing Vanda at approximately $466 million.

In addition to these developments, Vanda Pharmaceuticals has secured full U.S. marketing and clinical development rights for the multiple sclerosis drug PONVORY. This follows the transfer of rights from a Johnson & Johnson subsidiary, allowing the company to commence commercialization and further clinical development efforts.

In terms of earnings and revenue, Vanda reported mixed Q1 results, with a 24% decrease in total revenues, primarily due to generic competitors for its sleep disorder drug, HETLIOZ. However, the company did report a net income of $4.1 million.

Furthermore, Vanda announced successful results of its Phase III study of tradipitant, a drug designed to prevent motion sickness, and plans to submit a New Drug Application to the FDA later this year. These are the latest developments in Vanda Pharmaceuticals’ ongoing operations.

InvestingPro Insights

Amidst the ongoing legal battle, Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) has shown resilience in the financial markets, as highlighted by recent data from InvestingPro. The company’s market capitalization stands at a sturdy $328.82 million, reflecting investor confidence despite the uncertainties surrounding the patent lawsuit.

A notable metric that investors may find reassuring is Vanda’s impressive gross profit margin, which, for the last twelve months as of Q1 2024, is reported at 92.42%. This suggests that Vanda has been highly efficient in managing its cost of goods sold relative to its revenue—a positive sign for potential investors.

Furthermore, Vanda’s stock has experienced a remarkable price uptick, with a 33.89% year-to-date total return, indicating strong market performance. This is in line with the InvestingPro Tip that highlights a strong return over the last three months, wherein the company’s stock surged by 37.14%.

Such robust performance may be seen as a signal of market optimism regarding Vanda’s future, especially considering that analysts predict the company will be profitable this year—a sentiment that could be bolstered by a successful outcome in their patent litigation.

For investors looking for deeper insights and more comprehensive analysis, there are additional InvestingPro Tips available, including the fact that Vanda holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations. These indicators point towards a solid financial position, which could be pivotal as the company navigates through the legal process.

Interested readers can unlock further value by exploring the full suite of InvestingPro Tips. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which provides access to a total of 9 InvestingPro Tips for Vanda Pharmaceuticals, offering a comprehensive investment perspective. The promo code ensures that investors can make informed decisions with the latest data and expert analysis at an exceptional value.

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