Vanda reported a net loss of $ 12.4 million for the second quarter of 2009 , compared to $ 6.5 million for the first quarter of 2009 and $ 13.5 million for the second quarter of 2008 . Total expenses for the second quarter of 2009 were $ 12.4 million , compared to $ 6.6 million for the first quarter of 2009 and $ 13.9 million for the second quarter of 2008 . Research and development ( R & D ) expenses for the second quarter of 2009 were $ 7.2 million , compared to $ 2.3 million for the first quarter of 2009 and $ 5.5 million for the second quarter of 2008 . The increase in R & D expenses in the second quarter of 2009 relative to the first quarter of 2009 and second quarter of 2008 is primarily due to the regulatory consulting fees paid and / or accrued as a result of the approval of Fanapt ( TM ) ( iloperidone ) by the U.S. Food and Drug Administration ( FDA ) . In addition , the Company recorded a $ 12.0 million milestone payment due to Novartis as an intangible asset . Of the $ 12.0 million milestone payment , $ 7.0 million was paid in May 2009 and the remaining $ 5.0 million is due in November 2009 ; however , Novartis has the right to accelerate the due date in its sole discretion .