Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Vanda, retaining the price target of $20.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors surrounding Vanda Pharmaceuticals’ recent legal victory over the FDA. The court’s decision to overturn the FDA’s rejection of HETLIOZ for treating jet lag disorder is a significant development that could lead to the drug’s eventual approval for this indication. This potential approval is not yet reflected in current revenue forecasts, which primarily account for the anticipated decline in sales of branded tasimelteon due to generic competition.
Moreover, the court ruling has broader implications for the relationship between the FDA and pharmaceutical companies, emphasizing the need for the agency to engage thoroughly with the evidence provided by drug developers. This shift could favorably impact Vanda’s future interactions with the FDA and enhance the company’s prospects. Consequently, Selvaraju maintains a Buy rating on Vanda’s stock, with a 12-month price target of $20, anticipating that these developments could unlock additional value for the company.