Welcome to the Q2 2020 Vanda Pharmaceuticals Inc. Earnings Conference Call. My name is Vanessa and I'll be the operator for today's call. At this time all participants are in a listen-only mode. Later we'll conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. I'll now turn the call over to Kevin Moran, Vanda’s Senior Vice President and Chief Financial Officer. Kevin, you may begin.

Thank you, Vanessa. Good afternoon and thank you for joining us to discuss Vanda Pharmaceuticals second quarter 2020 performance. Our second quarter 2020 results were released this afternoon and are available on SEC's EDGAR system and on our website, www.vandapharma.com. In addition, we are providing live and archived versions of this conference call on our website. Joining me on today’s call is Dr. Mihael Polymeropoulos, our President and CEO. Following my introductory remarks, Mihael will update on our ongoing activities, I will then comment on our financial results before opening the lines for your questions. Before we proceed, I would like to remind everyone that various statements we make on this call will be forward looking statements within the meaning of federal securities laws. Our forward-looking statements are based on current expectations that involve risks, changes in circumstances, assumptions and uncertainties. These risks are described in our risk factors and management discussion and analysis of financial conditions and results of operations sections of our annual report on Form 10-K for fiscal year ended December 31, 2019, as updated by our subsequent quarterly report on Form 10-Q, current reports on Form 8-K and other filings with the SEC, which are available on the SEC's EDGAR system and on our website. We encourage all investors to read these reports and our other SEC filings. The information we provide on this call is provided only as of today, and we undertake no obligations to update or revise publicly any forward-looking statements we may make on this call on account of new information, future events or otherwise, except as required by law. With that said, I would now like to turn the call over to our CEO, Dr. Mihael Polymeropoulos.

Thank you very much, Kevin. First of all, I would like to congratulate Kevin Moran for his new role as the Chief Financial Officer of Vanda and we wish him every success. Good afternoon, everyone and thank you for joining us. While the world continues to face challenges related to the COVID-19 pandemic, Vanda remains focused on ways we can innovate and improve the lives of the patients we serve. I will begin with an update on our second quarter 2020 financial performance and then provide an update on the business. I'm encouraged by the record performance of our commercial projects during the second quarter of 2020. Despite the challenging climate, we reported a 5% year-over-year total revenue growth and a 7% growth as compared to the first quarter of 2020. HETLIOZ revenues grew by 10%, compared to the second quarter of 2019, and 18% compared to the first quarter of 2020. While we saw a decline in Fanapt revenues compared to the second quarter of 2019, Fanapt performed in line with other branded drugs in atypical antipsychotic class during the second quarter of 2020. Our sales representatives have shown great flexibility in their ability to adapt to the change in environments in their territories and have found ways to effectively serve doctors both remotely and in person. In June, we began our direct-to-consumer campaign on schizophrenia and Fanapt aimed at creating awareness about schizophrenia and encouraging people to learn more about therapeutic options and Fanapt. The program has been well received by people with schizophrenia and their friends, as well as healthcare practitioners. As we reported on Monday, the FDA accepted our filings for HETLIOZ in the treatment of Smith-Magenis Syndrome, with a priority review of six months with a target action date of December 1, 2020. We look…

Thank you, Mihael. I'll begin by summarizing our second quarter 2020 financial results. Total revenues for the second quarter of 2020 were 62.2 million or 5% increase compared to 59.1 million for the second quarter of 2019. HETLIOZ net product sales were 41.6 million, a 10% increase compared to 37.8 million in the second quarter of 2019. The year-over-year growth in the HETLIOZ business was driven by a combination of unit demand and net price favorability. The second quarter of 2020 saw our highest net product sales and specialty pharmacy orders since the launch of HETLIOZ and as a result of exceptional patient adherence, countered by lower new patient starts during the quarter. As of June 30, 2020, the specialty pharmacy channel held less than two weeks of inventory on hand. Specialty pharmacy's inventory on hand, calculated based on trailing demand at the end of the second quarter of 2020 was flat when compared to the first quarter of 2020. Fanapt's net product sales were 20.6 million, a 3% decrease compared to 21.2 million in the second quarter of 2019. As of June 30, 2020, wholesalers have lower inventory on hand calculated based on trailing demand when compared to the first quarter of 2020. The value of this inventory change was less than $100,000. Fanapt prescriptions in the second quarter of 2020, as reported by IQVIA exponent decreased by 3%, compared to the first quarter of 2020. The performance of the Fanapt business during the period was impacted by the pandemic and the related disruption to patient visits with their physicians and restrictions on physical access to our sales force to health care providers. Based on IQVIA reported data for the second quarter of 2020, other branded drugs in atypical antipsychotic class were also negatively impacted by the pandemic. For…

Thank you very much, Kevin. At this point, we will be happy to answer any questions you may have.

Thank you. We will now begin the question-answer-session. [Operator Instructions] We have no questions at this time. I'll now turn the call back to Vanda management for closing remarks.

Thank you very much, Vanessa and thank you all for joining this call. I will talk to you soon. Thank you.

Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for participating. You may now disconnect.