Strong Buy Rating for Vanda Pharmaceuticals Driven by Growth in Key Product Lines and Promising FDA Decision

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Vanda today and set a price target of $20.00.

Ram Selvaraju’s rating is based on Vanda’s strong performance and growth potential in its key product lines. The company reported revenue in line with expectations, driven by significant growth in Fanapt prescriptions and sales, which are expected to continue as its use in bipolar I disorder expands. Additionally, Vanda’s direct-to-consumer campaign has successfully increased brand awareness, further supporting revenue growth.
Moreover, Vanda’s HETLIOZ franchise has shown resilience against generic competition, contributing significantly to the company’s revenue. The upcoming FDA decision on Bysanti, a new chemical entity with potential market exclusivity, presents a promising opportunity for Vanda, potentially enhancing its product portfolio and revenue streams. These factors, combined with a solid cash position, underpin Selvaraju’s Buy rating for Vanda’s stock.