Vanda Pharmaceuticals: Limited Downside, Pipeline-Driven Upside Supports $24 Target Price

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Vanda, with a price target of $24.00.

Ram Selvaraju has given his Buy rating due to a combination of factors tied to both limited downside from recent news and meaningful upside from the pipeline. The European regulator’s negative stance on iloperidone is not expected to alter his financial outlook, as his model did not assume any non‑U.S. revenue contribution, while the drug is already commercialized domestically and may still be reconsidered in Europe.

He also points to multiple upcoming regulatory and clinical catalysts, including an FDA decision on imsidolimab, potential approvals for tasimelteon and tradipitant, and advancing programs such as milsaperidone and the long‑acting iloperidone injectable. Based on a discounted cash flow analysis that assigns probability‑weighted value to these assets, he estimates enterprise and equity values that support a $24 target price, concluding that the current valuation understates Vanda’s approved portfolio and late‑stage pipeline despite the outlined commercial, clinical, and regulatory risks.

In another report released on February 25, B. Riley Securities also maintained a Buy rating on the stock with a $17.00 price target.