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Vanda Prevails in Jet Lag Litigation Against the FDA

Key Takeaway: Vanda Pharmaceuticals Inc. achieved a legal victory against the FDA in a Freedom of Information Act case regarding its drug Hetlioz for jet lag disorder. A federal court granted judgment in favor of Vanda, compelling the FDA to disclose records related to the company's supplemental New Drug Application. The ruling rejected the FDA's argument that such disclosure would cause foreseeable harm, emphasizing the need for transparency in the approval process for new therapeutics. Vanda's president highlighted the importance of this ruling for drug innovation and public health.
Price reaction · baseline $6.83 (2023-03-27 close) · hit after-hours · clean, no other VNDA news in the window
day 0 close · peak
-0.6%

Market Sentiment Analysis

POSITIVE FACTORS

  • Vanda won a significant legal victory against the FDA.
  • The court's ruling promotes transparency needed for drug development.
  • The decision supports Vanda's push for approval of Hetlioz for jet lag treatment.

BiopharmaWatch Analysis

From our catalyst data and publicly available data · not financial advice
Best trade, last catalyst
+121%
120-day peak, hindsight
Typical move
19.9%
average across 7 past catalysts
Cash runway
~16 mo
Low dilution risk
Lead asset
Imsidolimab
Phase 2 · Palmoplantar Pustulosis

Full Press Release Details

WASHINGTON, March 28, 2023 /PRNewswire/ -- Vanda Pharmaceuticals Inc. (Vanda) (Nasdaq: VNDA) today announced a win in its jet lag FOIA litigation against the FDA.
On March 27, 2023 a federal court granted final judgment in favor of Vanda in its Freedom of Information Act ("FOIA") case requesting records created by the Food and Drug Administration ("FDA") during its review of Vanda's application seeking approval of a new use for its drug, Hetlioz® (tasimelteon). Vanda filed the lawsuit, Vanda Pharmaceuticals, Inc., v. Food and Drug Administration, case no. 1:22-cv-00938, in the United States District Court for the District of Columbia in April 2022 to compel the FDA to produce, as required by FOIA, certain records relating to its denial of Vanda's supplemental New Drug Application ("sNDA") for HETLIOZ® in the treatment of jet lag disorder.
Vanda had repeatedly attempted to obtain these records from the FDA pursuant to a FOIA request it submitted in December 2019, but the FDA had refused to disclose those records, invoking the deliberative process exemption under FOIA.
The court rejected the FDA's claim that it would suffer "foreseeable harm" if it disclosed to Vanda its reviews relating to Vanda's sNDA. In particular, the court held that in the context of this case, contrary to the FDA's assertion, "[d]isclosure cannot chill" the "deliberations" of agency staff.
Dr. Mihael H. Polymeropoulos, Vanda's President, CEO and Chairman of the Board, said: "In order to facilitate the development of promising new therapeutics for unmet patient needs, it is crucial that the FDA work collaboratively with drug innovators. The court's ruling today constitutes an important step to ensure appropriate transparency at the FDA, which is essential to scientific advancement in the service of public health."
As part of its ruling, the federal court issued a final and appealable order in Vanda's favor, which also denied the FDA's cross-motion for summary judgment.
About Vanda Pharmaceuticals Inc.
For full U.S. Prescribing Information for HETLIOZ®, including indication and Important Safety Information, visit www.hetlioz.com.
Senior Vice President, Chief Financial Officer and Treasurer
Vanda Pharmaceuticals Inc.
Head of Corporate Affairs
Vanda Pharmaceuticals Inc.

Frequently Asked Questions

What court ruled in favor of Vanda Pharmaceuticals?

The federal court granted judgment in favor of Vanda in their FOIA case.

What was Vanda seeking from the FDA?

Vanda requested records related to its sNDA for Hetlioz® and jet lag treatment.

Why did the FDA refuse Vanda's FOIA request?

The FDA invoked the deliberative process exemption under FOIA to deny disclosure.

What did the court say about the FDA's concerns?

The court rejected the FDA's claims of potential harm from disclosing the records.

Why is this court ruling significant for drug innovation?

It promotes transparency at the FDA, essential for developing new therapeutics.

Last updated: Mar 28, 2023