Stifel analyst Derek Archila downgraded Vanda Pharmaceuticals to Hold and lowered his price target to $17 from $26. The analyst says his prior stance was "overly bullish" in assuming that the company's pipeline was de-risked and sees the prospects on the stock remaining "highly levered" to its base business, which offers limited growth potential. Archila adds that Vanda's tradipitant program contains higher clinical, safety, and timing risk than assumed based on the disclosure of information from the company's FDA lawsuit.

Vanda Pharmaceuticals "announced that the Supreme Court denied Vanda's petition for a writ of certiorari in its HETLIOZ(R) Abbreviated New Drug Application litigation against Teva Pharmaceuticals USA, Inc., Apotex Inc. and Apotex Corp." CEO Mihael H. Polymeropoulos stated: "We are disappointed that the Supreme Court has decided not to hear our case and clarify the lower court standard for obviousness in patent law. However, we are pleased that our case has drawn attention to an area of law that has broad and significant implications in life sciences innovation."