Vanda Pharmaceuticals Incurs Big Penalty from Early Lease Termination

Rockville-based Vanda Pharmaceuticals (NASDAQ: VNDA) reported that it has sent notice to landlords of the Johns Hopkins University Montgomery County Campus for early termination of its office lease at 9605 Medical Center Drive.

The notice was sent December 27, 2011 and the company will move out by June 30, 2013. Commencement on the original lease agreement began January 1, 2006 and was supposed to run through June 30, 2016 for a total period of 10 years and 6 months. Vanda holds approximately 17,000 square feet under a triple net lease agreement.

The biotechnology company will incur early termination charges of approximately $1.5 million which will be recognized in the fourth quarter of 2011. Vanda pays approximately $421,770 annually at the Rockville office building managed by Spaulding and Slye.

On July 25, 2011, Vanda reported that it would be moving its headquarters to 2200 Pennsylvania Avenue in Northwest D.C. on an 11 year term starting April 1, 2012. The annual rent at an estimated $1.625 million, is significantly higher than the annual rent at its current location.

In the third quarter 2011, Vanda reported a net loss of $3.07 million on slow sales of its schizophrenia drug Fanapt.

Stocks, Trading and Investing