Washington, D.C.-based Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) which recently moved its headquarters from Rockville, has purchased rights to develop and commercialize a small molecule neurokinin 1 receptor (NK-1R) antagonist called VLY-686. VLY-686 is being licensed from pharmaceutical giant Eli Lilly & Co (NYSE:LLY).
Vanda has agreed to pay Eli Lilly an initial license fee of $1 million as well as receive payment when certain milestones are achieved including $4 million for pre-NDA approval and up to $95 million for future regulatory approval and sales.
Vanda intends to use VLY-686 to pursue a treatment for alcohol dependence that will reduce cravings and voluntary consumption.
The company posted a $5.52 million net loss in its most recent financial quarter. The net loss was one of its largest since the company went public.