By Maria Armental
Vanda Pharmaceuticals Inc. has regained U.S. and Canadian rights
to schizophrenia treatment Fanapt under a settlement with Novartis
AG that dismisses a licensing dispute over the schizophrenia
drug.
Under the settlement, Novartis will make a $25 million equity
investment and grant Vanda an exclusive world-wide license to its
schizophrenia drug candidate AQW051, a phase II alpha-7 nicotinic
acetylcholine receptor partial agonist.
Vanda, a biopharmaceutical company that focuses on the
development and commercialization of treatments of central nervous
system disorders, touted the deal as potentially
transformative.
Fanapt is an atypical antipsychotic approved for the treatment
of schizophrenia in adults. It was approved for marketing in
Israel, Mexico and Argentina, according to its website.
Vanda's shares jumped 22% to $14.50 in recent after-hours
trading Monday, while Novartis' shares edged down to $95.24.
Write to Maria Armental at maria.armental@wsj.com
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