Vanda Pharmaceuticals’ Earnings Call: Growth Amid Challenges

Vanda Pharmaceuticals ((VNDA)) has held its Q2 earnings call. Read on for the main highlights of the call.

The latest earnings call from Vanda Pharmaceuticals revealed a mixed sentiment, highlighting both achievements and challenges. The company reported strong growth in Fanapt revenue and expanded its sales force, alongside successful regulatory progress with Bysanti. However, these positive developments were tempered by increased net losses, declining revenues for HETLIOZ and PONVORY, and significantly higher operating expenses.

Fanapt Revenue Growth

Fanapt revenue saw a substantial increase of 27% compared to the same period in the previous year. This growth was primarily driven by the launch of the bipolar I indication, which has opened new market opportunities for the drug.

Expansion of Sales Force

Vanda Pharmaceuticals has significantly expanded its sales force dedicated to Fanapt, now comprising approximately 300 representatives. This expansion has led to a notable increase in sales activity, with the total number of calls growing by more than 40% compared to the first quarter of 2025.

Bysanti FDA Filing

The company’s regulatory efforts have borne fruit with the FDA’s acceptance of the NDA for Bysanti for the acute treatment of bipolar I disorder and schizophrenia. The PDUFA target action date is set for February 21, 2026, marking a critical milestone for Vanda.

Strong Cash Position

Vanda Pharmaceuticals maintains a robust cash position, with cash, cash equivalents, and marketable securities totaling $325.6 million as of June 30, 2025. This financial stability provides a solid foundation for future investments and growth.

Net Loss Increase

Despite the positive revenue growth for Fanapt, Vanda reported a significant increase in net loss, amounting to $56.7 million for the first half of 2025. This is a stark contrast to the $8.7 million net loss recorded in the same period of 2024.

HETLIOZ Revenue Decline

HETLIOZ experienced a decline in net product sales, with revenues dropping to $37.1 million for the first six months of 2025, a 4% decrease compared to the same period in 2024.

PONVORY Revenue Decrease

Similarly, PONVORY’s net product sales decreased by 18%, totaling $12.7 million for the first half of 2025, down from $15.4 million in the same period of the previous year.

Increased Operating Expenses

Operating expenses surged to $182.2 million for the first six months of 2025, compared to $117.3 million in the same period of 2024. This increase was driven by higher SG&A and R&D expenses, reflecting the company’s investment in its sales force and research initiatives.

Forward-Looking Guidance

Looking ahead, Vanda Pharmaceuticals provided guidance on its financial and commercial trajectory. The company reported total revenues of $102.6 million for the first half of 2025, a 5% increase from the previous year, largely due to Fanapt’s performance. Vanda projects total revenues between $210 million and $250 million for 2025, with year-end cash expected to range from $280 million to $320 million. The company also highlighted potential growth for pipeline products like Bysanti and tradipitant, with market entries anticipated in 2026.

In conclusion, Vanda Pharmaceuticals’ earnings call painted a picture of a company navigating both growth and challenges. While Fanapt’s success and regulatory advancements with Bysanti are promising, the increased net losses and declining revenues for other products underscore the hurdles ahead. Investors will be keenly watching how Vanda manages these dynamics moving forward.