WASHINGTON - Vanda (NASDAQ:VNDA) Pharmaceuticals Inc. (NASDAQ:VNDA) announced the successful results of its Phase III study of tradipitant, a drug aimed at preventing motion sickness. The study, named Motion Serifos, showed that tradipitant significantly reduced the incidence of vomiting in participants who have a history of motion sickness.
The randomized, double-blind, placebo-controlled trial involved 316 participants across twenty boat trips in varied sea conditions from September 2023 to April 2024. The primary focus was on the 170 mg dosage of tradipitant and its effectiveness in preventing vomiting. The results were notable, with only 10.4% of participants on tradipitant 170 mg experiencing vomiting compared to 37.7% on placebo. The 85 mg dosage also showed effectiveness, with an 18.3% vomiting incidence.
Furthermore, tradipitant was effective in preventing severe nausea and vomiting, with only 13.3% of participants experiencing these symptoms compared to 33.0% on placebo. These findings are significant given that the last new medication for motion sickness approved by the FDA was scopolamine in 1979.
Vanda Pharmaceuticals plans to submit a New Drug Application (NDA) to the FDA for tradipitant in the fourth quarter of 2024. Motion sickness is a common condition affecting approximately 30% of the general population under ordinary travel conditions, and the demand for effective treatment is underscored by the millions of doses of current remedies like Dramamine sold monthly in the U.S.
InvestingPro Insights
Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) has recently shared promising results from its Phase III study of tradipitant, setting a positive tone for the company's future prospects. In light of this development, let's delve into some key financial metrics and InvestingPro Tips that investors should consider.
The company boasts a robust Gross Profit Margin of 92.42% for the last twelve months as of Q1 2024, reflecting its ability to maintain profitability at the operational level despite a challenging revenue environment. This is further corroborated by an impressive Market Cap of $298.56M, which indicates investor confidence in the company's market value and future growth potential.
Looking at stock performance, VNDA has experienced a 6 Month Price Total Return of 44.51%, showcasing a significant uptick in investor returns over a relatively short period. This trend is in line with the InvestingPro Tip highlighting the company's strong return over the last three months and could be indicative of market optimism surrounding the recent drug trial outcomes.
As for the InvestingPro Tips, VNDA holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability. Moreover, analysts predict the company will be profitable this year, a sentiment that aligns with the expectation of net income growth.
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Overall, these financial metrics and insights from InvestingPro paint a picture of a company with solid fundamentals and promising market performance, which may interest investors looking for opportunities in the pharmaceutical sector.
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