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Vanda Pharmaceuticals Calls on FDA to Withdraw Proposal from FY 2027 Legislative Agenda That Would Extend Drug Review Timelines

Key Takeaway: Vanda Pharmaceuticals has urged the FDA to withdraw a proposal from its FY 2027 budget that would extend drug review timelines and replace formal hearings with internal appeals. The company argues that this change would worsen delays and reduce transparency for patients. Vanda's CEO criticized the proposal as a move to legalize slower review processes, which could negatively impact innovation and patient access to medications.
Price reaction · baseline $7.29 (2026-04-08 close) · hit after-hours · clean, no other VNDA news in the window
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CONCERNS & RISKS

  • The proposal would extend drug review timelines, increasing delays.
  • It replaces formal hearings with a weaker internal appeal process.
  • Vanda highlights that the FDA's current practices violate existing law.
  • The changes could lead to longer waits for patients needing medicines.

BiopharmaWatch Analysis

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Best trade, last catalyst
+121%
120-day peak, hindsight
Typical move
19.9%
average across 7 past catalysts
Cash runway
~16 mo
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Lead asset
Imsidolimab
Phase 2 · Palmoplantar Pustulosis

Full Press Release Details

WASHINGTON,April 9, 2026/PRNewswire/ -- Vanda Pharmaceuticals Inc. (Vanda) (NASDAQ:VNDA) today highlighted a legislative proposal contained in the FDA's FY 2027 Congressional Budget Justification.
The proposal would eliminate the simple statutory requirement that the FDA must review a new drug application (NDA) within 180 days of filing.
In plain terms, this change would extend statutory review timelines rather than shorten them. It would replace the 180-day legal requirement with the longer Prescription Drug User Fee Act (PDUFA) and Generic Drug User Fee Amendments (GDUFA) performance goals. Under those goals, the FDA takes up to two months simply to decide whether to "file" the application. Only after that does the official review clock begin, resulting in typical total review times of 10 to 12 months from submission to decision.
The proposal would also replace the formal evidentiary hearing process required by current law with a weaker, internal streamlined appeal. The FDA has avoided providing the statutorily mandated opportunity for a formal evidentiary hearing on drug non-approvals for over 40 years, until Vanda's successful litigation forced the agency to grant the first such hearing in more than four decades.
"The FDA's current practice of exceeding the 180-day statutory timeline by issuing Complete Response Letters and operating under longer PDUFA timelines has already been ruled by federal courts to violate the law," said Mihael H. Polymeropoulos, M.D., President, CEO and Chairman of the Board of Vanda Pharmaceuticals.  "Instead of complying with the law as written, this proposal asks Congress to change the law so the slower system becomes legal. This is especially concerning because Commissioner Makary said just days ago that the current two-month filing review is too long and should take just days—yet this proposal seeks to codify that very delay into law. At the same time, the FDA seeks to replace the formal hearing process with a streamlined internal appeal, despite the U.S. Court of Appeals for the D.C. Circuit having ruled only months ago that the FDA unlawfully denied Vanda a proper hearing in the HETLIOZ®jet‑lag case, and after the agency was compelled to grant Vanda the first formal drug approval hearing statutorily required but effectively avoided by the FDA for more than forty years."
Vanda supports genuine efforts to cut red tape and improve efficiency. However, this proposal does the opposite: it entrenches longer review times, reduces transparency for patients, and protects bureaucratic inertia instead of innovation. American patients would wait longer for needed medicines, while small innovators like Vanda would face greater financial risk and uncertainty.
Vanda calls on FDA Commissioner Dr. Marty Makary to withdraw this provision from the FY 2027 legislative agenda and urges Congress to reject the proposal.

About Vanda Pharmaceuticals Inc.

Vanda is a leading global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. For more on Vanda Pharmaceuticals Inc., please visitwww.vandapharma.comand follow us on X @vandapharma.

Corporate Contact:

Kevin MoranSenior Vice President, Chief Financial Officer and TreasurerVanda Pharmaceuticals Inc.202-734-3400[email protected]
Jim Golden / Jack Kelleher / Dan MooreCollected Strategies[email protected]
Follow us on X @vandapharma

Frequently Asked Questions

What is Vanda Pharmaceuticals requesting from the FDA?

Vanda Pharmaceuticals is urging the FDA to withdraw a proposal that would extend drug review timelines.

How would the FDA's proposal affect drug reviews?

The proposal would replace the 180-day review requirement with longer timelines, increasing delays.

What changes does the proposal suggest for hearings?

It proposes to replace formal evidentiary hearings with a weaker internal appeal process.

Why is Vanda concerned about the proposal?

Vanda believes the changes would lead to longer waits for patients and reduce transparency.

Last updated: Apr 9, 2026