After Tenfold Gains, Vanda Insiders Dumping Stock (VNDA)

May 13, 2009 · Filed Under General 

Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) has been a monster gainer of late as traders and short-sellers keep driving the stock up.  This was a mere $1.00 stock early last week and this has closed up five straight days after an unexpected FDA approval.  Yet today, we see that insiders are now unloading stock.

The run was based upon the great hope for the unexpected approval of its Schizophrenia treatment.  With this and related disorders being a huge blockbuster opportunity, the approval could lead to a blockbuster drug status with a $1 billion target in annual sales.

Shares closed up 15% today at $12.96, yet we are seeing some selling after the close as a result of insiders selling.  Whether or not that holds tomorrow is up to more powers than we can speculate on.

Chief Medical Officer Feeney John Joseph sold 17.551 shares at $11.19

Sr. VP, Acting CFO/Treasurer Irish Stephanie Rast sold 10,000 shares at $12.00

Officer John J. Feeney Sold 15,438 shares at $10.16

Be advised, we did also see some stock grants to executives.  So we could have more insider buying, or we could see headlines that insiders actually grew their holdings.  Based upon the move up seen in the stock it is of little surprise that insiders are selling.  We’d even expect to see more selling.

JON C. OGG

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