Vanda Pharmaceuticals Acquires Rights To Multiple Sclerosis Drug From Johnson & Johnson's Company
Portfolio Pulse from Vandana Singh
Vanda Pharmaceuticals Inc (VNDA) has acquired the U.S. and Canadian rights to the multiple sclerosis drug Ponvory from Actelion Pharmaceuticals, a Johnson & Johnson (JNJ) company. The drug is FDA and Health Canada approved for treating relapsing forms of multiple sclerosis (RMS). Vanda paid $100 million for the rights, and Janssen will continue to operate under a Transitional Business License Agreement. Ponvory has shown superiority to Sanofi SA's (SNY) Aubagio in clinical studies. VNDA shares dropped 3.05% to $3.92.
December 07, 2023 | 5:32 pm
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NEUTRAL IMPACT
Johnson & Johnson's Actelion sells U.S. and Canadian rights to Ponvory to Vanda Pharmaceuticals, but will continue to operate the business under a license agreement.
JNJ's divestiture of Ponvory rights to VNDA for $100 million is a strategic move. The short-term impact on JNJ's stock is likely neutral as the deal size is relatively small compared to JNJ's overall business.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Sanofi's Aubagio was outperformed by Ponvory, now owned by Vanda Pharmaceuticals, in a clinical study for multiple sclerosis treatment.
The clinical superiority of Ponvory over SNY's Aubagio could negatively impact SNY's market share in the MS treatment space, potentially affecting short-term stock performance.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Vanda Pharmaceuticals acquires rights to Ponvory, a multiple sclerosis drug, potentially expanding its commercial portfolio and treatment applications.
The acquisition of Ponvory rights is a significant expansion for VNDA's portfolio, indicating potential future growth. However, the immediate stock price reaction was negative, possibly due to the cost of acquisition or market skepticism about the deal's value.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90