Investors have no reason to hold the stock, as it looks like sales of Vanda’s schizophrenia drug Fanapt are not doing quite well lately and there is no outlook for this to improve in the future.
The whole ability of Vanda to make any sales at all, depends mostly on that single product. Dark heavy clouds seem to be hanging over the company and it is hard to think about how further down the stock can go. Selling pressure is growing as the market sold vigorously out yesterday and the volume bubbled up more than three times, reaching 3.3 million shares traded. The stock tanked 8.84%, and this time it was the drop of the year, leading to this year’s bottom value of $8.76.
The stock broke all resistance levels and went below the fast moving average of $11.10 last week, as another member of the senior management abandoned the burning ship in a hurry .
On Tuesday Vanda Pharmaceuticals filed an 8-k, announcing that Brian K. Halak, Ph.D.’s had given up of all his three positions held within the company. [BANNER]
After the turmoils and the large volatility at the start of the year, Senior Vice President William D. “Chip” Clark had also announced his resignation and the clear downtrend of the stock made its way then. Although last year the biopharmaceutical company recorded revenues for the first time since 2005, the net loss is still enormous and nothing seems to be able to retain investor interest any more.
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