Vanda’s Strategic In-Licensing of Imsidolimab Signals Promising Growth in GPP Market

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Vanda (VNDA – Research Report) today and set a price target of $18.00.

Ram Selvaraju’s rating is based on Vanda’s strategic decision to in-license imsidolimab, a promising IL-36R antagonist monoclonal antibody from AnaptysBio. This compound has already completed pivotal Phase 3 clinical trials for the treatment of generalized pustular psoriasis (GPP), a severe and potentially life-threatening skin condition. With the completion of these trials, Vanda plans to prepare regulatory submissions in the U.S. and EU, aiming for market entry in the near future.
The market potential for imsidolimab is significant, as GPP represents a niche market with a total addressable market estimated in the $200-300 million range annually at peak. The success of SPEVIGO, a similar monoclonal antibody priced at $200K per patient annually, underscores the commercial viability of such therapies. Imsidolimab’s potential advantages in safety profile, owing to its IgG4 construct, could position it as a leading therapy for newly-diagnosed GPP patients. These factors contribute to the reaffirmation of a Buy rating for Vanda’s stock, signifying confidence in the company’s strategic growth and market opportunities.