Shares of Vanda Pharmaceuticals (NASDAQ:VNDA) are set to trade to the upside on Tuesday after news was released on Monday evening detailing a licensing agreement with Novartis (NYSE:NVS) for Fanapt that could be worth as much as $465 million. VNDA traded higher by 20% during the after hours trading period on Monday after the news hit.
A conference call is scheduled for Tuesday morning at 8:30 AM, directions for participating in the call are outlined in the original press release.
With the outcome of the Fanapt marketing arrangement now publicly known, shares of VNDA could embark on a new uptrend towards the twenty dollar level. Novartis is a huge player in the pharmaceutical market and it could only be assumed that the company will be able to maximize the sales potential of Fanapt.
Vanda, in addition to a $200 million plus up-front payment, will receive royalties on sales of Fanapt and also retains world wide marketing rights to the product.
Disclosure: No position.