Vanda Pharmaceuticals: Strong Financial Performance and Strategic Growth Justify Buy Rating

Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Vanda (VNDA – Research Report), retaining the price target of $20.00.

Ram Selvaraju has given his Buy rating due to a combination of factors including Vanda’s strong financial performance and strategic initiatives. The company reported a solid revenue beat in the first quarter of 2025, with revenues reaching $50 million, surpassing the forecasted $45 million. This positive performance is attributed to the increased uptake of Fanapt, particularly in the treatment of bipolar I disorder, evidenced by a 14% rise in total prescriptions and net product sales compared to the previous year.
Additionally, Vanda’s strategic expansion of its psychiatry sales force and the resilience of its HETLIOZ franchise amidst generic competition further support the Buy rating. The upcoming potential approval of Bysanti, a new chemical entity, by the FDA in February 2026, also adds to the optimistic outlook. If approved, Bysanti could significantly enhance Vanda’s product portfolio and market presence, with potential exclusivity extending into the 2040s. These factors collectively reinforce the positive long-term prospects for Vanda, justifying the Buy rating and a 12-month price target of $20.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VNDA in relation to earlier this year.