Vanda Pharmaceuticals halts social anxiety drug program after Phase 3 failure

Vanda Pharmaceuticals puts its social anxiety disorder program on hold after its experimental drug, VQW-765, fails its primary goal in a Phase 3 trial announced on October 14, 2026. The 546-patient trial across 30 U.S. sites fails to show reduced anxiety versus placebo during a stress test, missing both main and key secondary endpoints. Despite maintaining a safe and well-tolerated profile consistent with earlier studies, company shares drop approximately 17% in extended trading as Vanda reviews the full dataset.

VQW-765 Phase 3 trial failure

• ▪The Phase 3 trial results for VQW-765 failed to confirm findings from an earlier mid-stage trial of VQW-765 that had suggested the drug could reduce social anxiety symptoms
• ▪Vanda Pharmaceuticals' experimental drug VQW-765 failed to achieve its primary goal of reducing social anxiety compared to placebo during a public-speaking stress test in a Phase 3 trial announced on October 14, 2026

Social anxiety disorder study design

• ▪The Phase 3 trial for VQW-765, announced on October 14, 2026, enrolled 546 adults with social anxiety disorder across approximately 30 trial sites in the United States
• ▪Vanda Pharmaceuticals designed the Phase 3 study, announced on October 14, 2026, to confirm earlier mid-stage trial results for VQW-765 in patients with social anxiety disorder

Program hold pending data review

• ▪Shares of Vanda Pharmaceuticals fell by approximately 17% in extended trading following the October 14, 2026 announcement of the VQW-765 trial failure
• ▪Vanda Pharmaceuticals placed its VQW-765 social anxiety disorder program on hold following the Phase 3 trial failure announced on October 14, 2026
• ▪Vanda Pharmaceuticals put the VQW-765 development program on hold while conducting a review of the complete VQW-765 trial dataset