Why Vanda Pharmaceuticals Inc. Shares Skyrocketed

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vanda Pharmaceuticals (NASDAQ: VNDA  ) , a biopharmaceutical company that develops therapies to treat central nervous system disorders, skyrocketed as much as 90% after briefing documents posted on the Food and Drug Administration's website today painted experimental sleep therapy tasimelteon in positive light.

So what: According to the report on the FDA's website, reviewers on the FDA panel -- which are scheduled to vote on a recommendation for or against approval on Thursday -- noted in documents released today that tasimelteon helps blind people sleep. Most people have no trouble staying on a normal sleep pattern as our bodies adjust to the sun and use that as our gauge of when to sleep. Blind people don't have this luxury, and thus have a difficult time maintaining normal sleep patterns, which tasimelteon hopes to cure (also known as non-24-hour disorder).

Now what: Briefing documents often give us a good indication of where the FDA panels' vote will lean -- and all indications would be in favor of recommendation thus far. Of course, this doesn't mean the FDA has to follow the recommendation of its advisory panel or that Vanda will necessarily have any success in launching the drug, but it does move the company along to the next crucial step of the process. Vanda's been here before, and its schizophrenia drug Fanapt hasn't performed nearly as well as most analysts on Wall Street had expected, so I might think twice about considering Vanda at these lofty levels, which seem to be driven more by emotional trading today than fundamental logic.

Growth isn't a question for this stock
Vanda is certainly exciting investors with tasimelteon's potential -- but so is this incredible tech stock which is growing twice as fast as Google and Facebook, and more than three times as fast as and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this company will be a huge winner in 2013 and beyond. Just click here to watch!

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2723266, ~/Articles/ArticleHandler.aspx, 9/27/2016 11:33:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,132.80 37.97 0.21%
S&P 500 2,150.84 4.74 0.22%
NASD 5,277.65 20.16 0.38%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:16 AM
VNDA $16.73 Down -0.32 -1.88%
Vanda Pharmaceutic… CAPS Rating: *