VNDA, NVS: Vanda Pharmaceuticals, Novartis Resolve Fanapt Dispute

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Vanda Pharmaceuticals (VNDA) and Novartis (NVS) have reached an agreement in their Fanapt dispute.

vanda-pharmaceuticals-novartis-vnda-nvsThe dispute between Vanda Pharmaceuticals and Novartis will end with the former getting United States and Canadian rights to Fanapt, a schizophrenia drug. The deal will also have Novartis making a $25 million investment in Vanda and giving it an exclusive licence to its phase II drug AQW051.

Vanda Pharmaceuticals President and CEO Mihael H. Polymeropoulos MD, said that the deal could mark a major transformation for the company. Fanapt is approved for treating schizophrenia in adults in the US. It also has patent protection via a chemical compound that will expire in 2016 and a treatment method that will expire in 2027.

The original licensing deal for Fanapt was made between Vanda Pharmaceuticals and Novartis in October 2009. However, in early 2014, Vanda filed an arbitration proceeding against Novartis. The company was seeking $539 million, but a counter-claim was filed shortly after this, reports InvestorGuide.

VNDA shares were up 13% as of Tuesday afternoon and NVS shares were down 2%.

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