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 biotechnology company Vanda Pharmaceuticals (NASDAQ:VNDA) soared a whopping 40% today after the Food and Drug Administration accepted its filing and granted a priority review classification for its non-24-hour sleep disorder drug tasimelteon.

So what: The news suggests that the FDA considers non-24-hour disorder as a serious unmet need and, in turn, raises the probability that tasimelteon will be approved much sooner than expected. According to Vanda, between 65,000 and 95,000 people are affected by Non-24-Hour in the U.S. alone, so Wall Street is naturally excited over the drug's sales potential.

Now what: The FDA plans to complete its review by January 31 and will also discuss the drug with a panel of independent advisors on November 14.

"The agency's acceptance of the NDA and decision to place tasimelteon in a category of expedited review are important milestones for Vanda as we take another step toward our goal of providing patients with a treatment for Non-24," said CEO Mihael Polymeropoulos.

So while the stock might be too hot and risky for average investors, biotech-savvy Fools might want to take a look at Vanda's brightened prospects.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.