Vanda Pharmaceuticals: FDA Approval Drives 29% Stock Jump

shares of Vanda Pharmaceuticals Inc. (VNDA) surged 29.13 percent, reaching $9.08-a gain of $2.05-following the company’s proclamation that the U.S. Food and Drug Governance approved NEREUS (tradipitant) for preventing vomiting caused by motion sickness. This marks the first approval of its kind in over four decades.

The FDA’s decision stemmed from compelling results in key clinical trials,which demonstrated considerable reductions in vomiting compared to a placebo. NEREUS is now positioned as a groundbreaking treatment for a condition that impacts millions of adults.

Did you know? Motion sickness affects an estimated 90 million people worldwide. Symptoms range from mild nausea to debilitating vomiting, significantly impacting travel and daily life.

On the day of the announcement, VNDA stock opened near $7.50, peaked above $9.20 during trading, and dipped to a low of approximately $7.45, a notable increase from the previous day’s closing price below $7.10. The stock is traded on the Nasdaq.

Strong investor interest was evident in the trading volume following the regulatory approval. Vanda’s 52-week range reflects the typical fluctuations common in the biotech sector, influenced by both regulatory decisions and clinical trial developments.

Pro tip: Tradipitant, the active ingredient in NEREUS, works by blocking the NK1 receptor in the brain, which plays a key role in triggering the vomiting reflex associated with motion sickness.