H.C. Wainwright says rejection of Vanda’s tasimelteon ‘only minor setback’

H.C. Wainwright notes that Vanda Pharmaceuticals (VNDA) announced that it has received a decision letter from the FDA’s Center for Drug Evaluation and Research concluding that the supplemental New Drug Application for HETLIOZ – tasimelteon – for the treatment of jet lag disorder cannot be approved in its current form. In the firm’s view, the rejection of tasimelteon constitutes only a minor setback and may not mark the end of dialogue over the compound in this indication. Furthermore, Wainwright draws investors’ attention to the fact that its valuation assessment did not include any contribution from sales of tasimelteon in treatment of jet lag. Accordingly, the firm reiterates a Buy rating and a price target of $22 on the shares.