Vanda's NEREUS Gets FDA Greenlight; Stock Climbs 20% as Motion Sickness Treatment Breaks Four-Decade Drought

SellLowExpert · 2025-12-31T16:05:55+00:00

Vanda Pharmaceuticals has received FDA approval for NEREUS (tradipitant), a new treatment for motion-induced vomiting, causing stock prices to surge. The drug targets root causes of motion sickness and has broader applications in treating other conditions, with a commercial launch expected soon.

SellLowExpert

2025-12-31 16:05:55

Abstract generation in progress

Vanda Pharmaceuticals (VNDA) has just received a major regulatory win. The FDA has cleared NEREUS (tradipitant), an NK-1 receptor antagonist taken orally, for preventing motion-induced vomiting—a breakthrough that hasn’t been seen in the pharmaceutical space since the early 1980s.

The approval sent VNDA shares rocketing overnight. After closing Tuesday at $7.03 on NasdaqGM (down 2.36%), the stock jumped to $8.50 in after-hours trading by 8:04 PM EST, marking a 20.91% surge. That kind of move speaks volumes about investor enthusiasm for the new indication.

Why This Matters Beyond Wall Street

Motion sickness may sound minor, but it’s a problem affecting substantial portions of the population and has historically been a headache for military operations. For decades, treatment options have been limited—making NEREUS a genuinely novel therapeutic approach. The drug targets substance P-mediated pathways, addressing the root mechanism rather than just masking symptoms.

The Broader Pipeline

Vanda isn’t stopping at motion sickness. The company is actively developing tradipitant for gastroparesis, a condition characterized by delayed stomach emptying and chronic nausea. Perhaps more intriguing: the company is exploring the drug’s potential to combat nausea and vomiting caused by GLP-1 receptor agonists—a major side effect that’s been limiting patient adherence in the booming obesity and diabetes treatment market.

The commercial launch of NEREUS is expected in the coming months, with potential to establish Vanda as a key player in addressing substance P-driven conditions across multiple therapeutic areas.

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