10:47 AM EST, 12/20/2024 (MT Newswires) -- Vanda Pharmaceuticals ( VNDA ) said Friday morning that the US Food and Drug Administration has designated the company's VGT-1849A product candidate as an orphan drug to treat polycythemia vera, a rare form of hematologic malignancy affecting about one in every 2,000 people in the country.

The FDA uses orphan drug designation to incentivize the development of prospective treatments for conditions affecting relatively few people. Therapies receiving the designation are eligible for selected tax credits and exemption from certain fees and up to seven years of market exclusivity following regulatory approval.

Vanda shares recently were up 1.5% during Friday morning trade.

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