Vanda Pharmaceuticals Announces Receipt of FDA Decision Letter on HETLIOZ® Supplemental New Drug Application for Jet Lag Disorder

Rhea-AI Summary

Vanda Pharmaceuticals (Nasdaq: VNDA) said the FDA's CDER issued a decision letter on Jan 8, 2026 concluding the sNDA for HETLIOZ (tasimelteon) for jet lag disorder "cannot be approved in its current form."

The FDA acknowledged positive efficacy signals from Vanda's controlled trials but found phase advance protocols (5-hour and 8-hour bedtime shifts) insufficiently analogous to real-world jet travel. Vanda disagrees, cites simulated and actual transatlantic travel data and a >10-year safety record, and notes the D.C. Circuit set aside a prior FDA refusal in Aug 2025. Vanda said it will continue to engage the FDA and pursue avenues to advance approval.

Positive

• FDA acknowledged positive efficacy signals in Vanda's controlled trials
• D.C. Circuit set aside prior FDA refusal in Aug 2025
• Vanda cites >10 years of market safety experience for tasimelteon

Negative

• FDA concluded sNDA "cannot be approved in its current form" on Jan 8, 2026
• FDA found phase advance protocols (5-hour and 8-hour shifts) not analogous to travel

News Market Reaction

-14.05%

4 alerts

-14.05% News Effect

-12.3% Trough Tracked

-$82M Valuation Impact

$505M Market Cap

0.6x Rel. Volume

On the day this news was published, VNDA declined 14.05%, reflecting a significant negative market reaction. Argus tracked a trough of -12.3% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $82M from the company's valuation, bringing the market cap to $505M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Phase advance shift: 5-hour bedtime shift Phase advance shift: 8-hour bedtime shift Market experience: Over 10 years +1 more

4 metrics

Phase advance shift 5-hour bedtime shift Controlled phase advance protocol used in jet lag studies

Phase advance shift 8-hour bedtime shift Controlled phase advance protocol used in jet lag studies

Market experience Over 10 years Tasimelteon use in chronic approved indications

Re-review deadline January 7, 2026 Target date for FDA expedited re-review of HETLIOZ sNDA

Market Reality Check

Price: $7.43 Vol: Volume 1,716,481 vs 20-da...

low vol

$7.43 Last Close

Volume Volume 1,716,481 vs 20-day average 3,065,053 (relative volume 0.56x). low

Technical Price 8.54 trading above 200-day MA at 4.9 heading into this FDA decision.

Peers on Argus

VNDA gained 5.04% while several biotech peers (e.g., NMRA, LXEO, OMER, TNXP) als...

VNDA gained 5.04% while several biotech peers (e.g., NMRA, LXEO, OMER, TNXP) also showed positive moves, but no peers appeared in the momentum scanner and only 1 peer had news, suggesting a stock-specific reaction.

Historical Context

5 past events · Latest: Dec 30 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 30	FDA approval	Positive	-2.4%	FDA approved NEREUS for motion‑sickness vomiting prevention after pivotal trials.
Dec 15	BLA submission	Positive	+6.4%	Filed BLA for imsidolimab in GPP backed by positive Phase 3 GEMINI data.
Dec 11	Conference participation	Neutral	-2.2%	Announced upcoming J.P. Morgan Healthcare Conference presentation and webcast access.
Dec 4	Clinical hold update	Positive	-0.8%	FDA lifted partial clinical hold on tradipitant, allowing extended dosing in studies.
Nov 28	Regulatory update	Positive	+1.1%	Provided FDA review timing updates for tradipitant motion sickness program and NDA.

Pattern Detected

Recent price reactions to positive regulatory news are mixed, with both aligned gains and sell-on-good-news declines around FDA and pipeline milestones.

Recent Company History

Over the last few months, Vanda reported multiple regulatory milestones. On Dec 30, 2025, FDA approval of NEREUS for motion‑sickness prevention saw shares dip modestly. Earlier in December, a BLA submission for imsidolimab in GPP and an FDA decision lifting a partial clinical hold on tradipitant highlighted pipeline progress, yet price moves were modest and sometimes negative. An October 2025 collaborative framework with the FDA covered HETLIOZ jet lag and tradipitant reviews, directly connecting to today’s decision letter on HETLIOZ for jet lag disorder.

Market Pulse Summary

The stock dropped -14.1% in the session following this news. A negative reaction despite any longer-...

Analysis

The stock dropped -14.1% in the session following this news. A negative reaction despite any longer-term pipeline progress would fit a mixed pattern in VNDA’s history, where even favorable FDA or clinical milestones sometimes saw weak price follow-through. With shares already trading above the 200-day MA, a sharp decline on this HETLIOZ jet lag setback could have reflected investors refocusing on regulatory risk and limited near-term catalysts, consistent with prior instances of sell-on-news behavior.

Key Terms

snda, center for drug evaluation and research, jet lag disorder, circadian rhythm, +3 more

7 terms

snda regulatory

"concluding that the supplemental New Drug Application (sNDA) for HETLIOZ"

A SNDA (Subordination, Non‑Disturbance and Attornment Agreement) is a legal pact among a property owner’s lender, the owner’s tenants, and sometimes the landlord that sets who keeps lease rights if the property is sold or a mortgage is enforced. Think of it as a rulebook that decides whether a tenant can stay and keep paying rent or must answer to a new owner after a foreclosure. For investors, an SNDA matters because it protects predictable rental income, clarifies who has priority on claims against a property, and therefore affects a property’s value and the security of related loans.

center for drug evaluation and research regulatory

"from the U.S. Food and Drug Administration's (FDA) Center for Drug Evaluation and Research (CDER)"

A U.S. federal regulatory office that reviews and decides whether new and existing prescription and over‑the‑counter drugs are safe and effective for patients. Its decisions set the rules for whether a medicine can be sold, what claims can be made about it, and what warnings are required. Investors watch it like a gatekeeper: approval unlocks market access and revenue, while delays or rejections create risk and uncertainty for a drug maker.

jet lag disorder medical

"for HETLIOZ® (tasimelteon) for the treatment of jet lag disorder cannot be approved"

Jet lag disorder is a temporary disruption of the body’s internal clock that happens after rapid travel across multiple time zones, causing sleep problems, daytime fatigue, poor concentration and mood changes. Investors care because it affects demand for travel-related services, workforce productivity, and markets for treatments or sleep aids—similar to a watch suddenly set to the wrong time, businesses and consumers must adjust schedules and spending until normal rhythm returns.

circadian rhythm medical

"widely accepted in circadian rhythm research as valid and reliable surrogates"

An internal biological clock that cycles roughly every 24 hours and controls when humans feel awake, sleepy, hungry, or alert—like a daily schedule built into the body. For investors it matters because circadian rhythms influence worker productivity, consumer behavior, timing and effectiveness of medicines, and outcomes of clinical trials; products or strategies that align with these natural cycles can perform better or carry lower risk.

icsd-3 medical

"driver of the disorder's hallmark symptoms per ICSD-3 criteria."

ICSD-3 is the International Classification of Sleep Disorders, third edition, a medical rulebook doctors use to name, describe and code different sleep conditions. For investors, it matters because this standardized language shapes how new treatments and tests are designed, tested, approved and billed—similar to a recipe that determines which ingredients a product needs to be accepted by regulators, doctors and insurers, affecting market size and revenue potential.

tasimelteon medical

"evidence from Vanda's studies including simulated and actual transatlantic travel demonstrates tasimelteon's meaningful benefits"

Tasimelteon is a prescription medicine that mimics the body’s natural sleep hormone to help reset or synchronize the internal 24-hour sleep–wake clock, especially in people whose circadian rhythm is out of sync. Investors watch it because its approval, patent protection and clinical trial results determine how many patients it can reach and how much revenue it can generate—similar to a specialized tool that fills a niche medical need and can drive predictable sales if widely adopted.

new drug application regulatory

"prior FDA refusal to approve HETLIOZ® for jet lag disorder"

A new drug application is a formal request submitted to government regulators seeking approval to market a new medicine. It is like a detailed proposal that shows the drug has been tested for safety and effectiveness. For investors, receiving approval signals that the drug may soon become available for sale, potentially leading to revenue growth and impacting the company's value.

AI-generated analysis. Not financial advice.

WASHINGTON, Jan. 8, 2026 /PRNewswire/ -- Vanda Pharmaceuticals Inc. (Vanda) (Nasdaq: VNDA) today announced that it has received a decision letter from the U.S. Food and Drug Administration's (FDA) Center for Drug Evaluation and Research (CDER) concluding that the supplemental New Drug Application (sNDA) for HETLIOZ® (tasimelteon) for the treatment of jet lag disorder cannot be approved in its current form. This letter stems from CDER's agreed re-review of the jet lag application under the October 1 collaborative framework agreement.

The FDA acknowledged positive efficacy from Vanda's controlled clinical trials, however, the FDA concluded that these data do not provide substantial evidence of effectiveness for jet lag disorder, primarily on the grounds that controlled phase advance protocols (5-hour and 8-hour bedtime shifts) are not sufficiently analogous to actual jet travel, which according to the FDA involves additional factors such as reduced oxygen pressure, physical constraints, noise, and lighting changes.

Vanda respectfully disagrees with this interpretation. Phase advance models are widely accepted in circadian rhythm research as valid and reliable surrogates for simulating the core circadian misalignment underlying eastward jet lag—the primary driver of the disorder's hallmark symptoms per ICSD-3 criteria. These models reproducibly induce the essential features of jet lag without the confounders of variable travel conditions which are unrelated to jet lag. The convergent evidence from Vanda's studies including simulated and actual transatlantic travel demonstrates tasimelteon's meaningful benefits on sleep duration, latency to persistent sleep, and next-day alertness.

Tasimelteon's safety profile is also well-established, with predominantly mild adverse events and a market experience of over 10 years in chronic approved indications. Vanda maintains that the submitted dataset meets the statutory standard for substantial evidence of effectiveness on clinically relevant endpoints, for jet lag disorder.

Procedural Status

As previously announced, in August 2025 the D.C. Circuit set aside a prior FDA refusal to approve HETLIOZ^® for jet lag disorder, describing Vanda's evidence as "specific, reasoned, and rooted in evidence" and the FDA's prior review as "cursory," while noting statistically significant improvements on primary endpoints across trials.

Following that ruling, Vanda and the FDA entered a collaborative framework agreement in October 2025, under which the FDA committed to an expedited re-review of the sNDA by January 7, 2026, including consideration of narrowed, sleep-focused indications.

Vanda appreciates the FDA's engagement but believes the current decision does not fully reflect the collaborative spirit or address the Court's concerns regarding meaningful engagement with the evidence. Vanda remains committed to working constructively with the FDA while pursuing all appropriate avenues to advance approval of HETLIOZ^® for jet lag disorder and make this important therapy available to travelers.

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 visit www.vandapharma.com and follow us on X @vandapharma.

About HETLIOZ^®

HETLIOZ^® is a melatonin‑receptor agonist, approved in the United States for the treatment of Non‑24‑Hour Sleep‑Wake Disorder and nighttime sleep disturbances associated with Smith‑Magenis Syndrome. For full U.S. Prescribing Information for HETLIOZ^®, including indications and Important Safety Information, visit www.hetlioz.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Various statements in this press release, including, but not limited to statements regarding Vanda's commitment to working with the FDA while pursuing appropriate avenues to advance approval of HETLIOZ^® in jet lag disorder, and the potential commercial availability of HETLIOZ^® for the treatment of jet lag disorder are "forward-looking statements" under the securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are based upon current expectations and assumptions that involve risks, changes in circumstances and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Vanda's forward-looking statements include, among others, the FDA's willingness to work with Vanda and meaningfully engage with the evidence, the results of Vanda's efforts to advance and obtain FDA approval of HETLIOZ^® in jet lag disorder, and Vanda's ability to successfully execute a commercial launch of HETLIOZ^® for the treatment of jet lag disorder if approved. Therefore, no assurance can be given that the results or developments anticipated by Vanda will be realized, or even if substantially realized, that they will have the expected consequences to, or effects on, Vanda. Forward-looking statements in this press release should be evaluated together with the various risks and uncertainties that affect Vanda's business and market, particularly those identified in the "Cautionary Note Regarding Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Vanda's most recent Annual Report on Form 10-K, as updated by Vanda's subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.

All written and verbal forward-looking statements attributable to Vanda or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Vanda cautions investors not to rely too heavily on the forward-looking statements Vanda makes or that are made on its behalf. The information in this press release is provided only as of the date of this press release, and Vanda undertakes no obligation, and specifically declines any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Corporate Contact:
Kevin Moran
Senior Vice President, Chief Financial Officer and Treasurer
Vanda Pharmaceuticals Inc.
202-734-3400
pr@vandapharma.com

Jim Golden / Jack Kelleher / Dan Moore
Collected Strategies
VANDA-CS@collectedstrategies.com

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SOURCE Vanda Pharmaceuticals Inc.

FAQ

What did the FDA decide about Vanda's HETLIOZ sNDA for jet lag (VNDA) on Jan 8, 2026?

The FDA's CDER issued a decision letter concluding the sNDA "cannot be approved in its current form."

Why did the FDA say HETLIOZ (VNDA) lacked substantial evidence for jet lag disorder?

CDER said controlled phase advance protocols (5-hour and 8-hour bedtime shifts) are not sufficiently analogous to actual jet travel conditions.

How did Vanda respond to the FDA decision on the HETLIOZ jet lag application?

Vanda respectfully disagreed, cited simulated and actual transatlantic travel data showing benefits, and committed to continue engagement with the FDA.

What legal development preceded the FDA re-review of HETLIOZ (VNDA)?

In Aug 2025 the D.C. Circuit set aside a prior FDA refusal, describing Vanda's evidence as specific and reasoned.

Does Vanda claim safety data for tasimelteon support approval of HETLIOZ for jet lag?

Yes; Vanda notes a well-established safety profile with over 10 years of market experience in chronic approved indications.

What are the likely next steps after the FDA decision for VNDA's HETLIOZ jet lag program?

Vanda said it will work constructively with the FDA and pursue appropriate avenues to advance approval, without specifying timelines.