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Vanda Pharmaceuticals Inc (VNDA) announced early Wednesday that its insomnia drug, VEC-162, showed positive results in a phase III clinical trial. The drug met many endpoints, and had a statistically significant difference in inducing and maintaining sleep compared to placebo.

VEC-162 is a melatonin receptor agonist. Melatonin is a substance involved in the natural sleep/wake cycle, thus VEC-162 is not expected to have the same side effects as sedatives and hypnotics, and should not be scheduled as a controlled substance.

Another one of Vanda's drug candidates is VSF-173, a potential treatment for excessive daytime sleep. This drug if successful, should add to the lack of sleep already paramount in today's society.

It would not be surprising if someone busy at work takes VSF-173 during the day, and then takes VEC-162 at night, or the other way around in the case of college students!

Vanda, with a market cap of only $200 million, had its IPO back in April of 2006. It reached a high of over $13 about 4 weeks ago, before dropping down to the current price of $9.76.

The company holds almost $50 million in cash and equivalents, and carries no debt.

Source: Vanda Pharmaceuticals' Insomnia Drug Registers Positive Results