Vanda halts Novartis-originated social anxiety drug after Phase 3 miss

Vanda Pharmaceuticals announced it is suspending development of VQW-765, a social anxiety disorder candidate licensed from Novartis, after the drug failed to demonstrate a statistically significant benefit in a Phase 3 trial.

The study enrolled 546 adults with elevated social anxiety and used a standardized social stress test in which participants prepared and delivered a presentation. Across the full cohort, and in the female subgroup where earlier data suggested greater efficacy, VQW-765 did not reduce distress scores compared with placebo.

Oppenheimer analysts called the outcome a "clean miss" and said the failure is not expected to severely impact Vanda’s valuation, but it increases pressure on the company’s upcoming Q4 readout of its Nereus program aimed at GLP-1‑induced vomiting.