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Vanda Pharmaceuticals Inc. (VNDA)
NASDAQ:VNDA
Top Page
Vanda
(NASDAQ:VNDA)
48Neutral
Positive Factors
Drug Development
The FDA accepted for filing the New Drug Application for tradipitant for the treatment of motion sickness.
Financial Position
Vanda ended 2024 with roughly $375M in cash, cash equivalents, and marketable securities and no debt, providing ample bandwidth for further business development initiatives.
Negative Factors
Clinical Evidence
The agency found unconvincing evidence of clinical efficacy in post hoc analyses of clinical trials conducted with tradipitant.
Regulatory Challenges
The FDA plans to reject the tradipitant NDA due to failure to demonstrate compelling evidence of efficacy in pivotal trials for symptom relief in gastroparesis.
Vanda (VNDA) vs. S&P 500 (SPY)
Market Cap
$273.50M
Dividend YieldN/A
Average Volume (3M)691.01K
Price to Earnings (P/E)―
Beta (1Y)0.20
Revenue Growth3.18%
EPS Growth-835.29%
CountryUS
Employees368
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.33
Shares Outstanding58,316,044
10 Day Avg. Volume515,787
30 Day Avg. Volume691,013
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.40
Price to Cash Flow (P/CF)-38.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.50Price Target Upside259.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Vanda Business Overview & Revenue Model
Company DescriptionVanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs. The company's marketed products include HETLIOZ for the treatment of non-24-hour sleep-wake disorders; and Fanapt oral tablets for the treatment of schizophrenia. Its products under development include HETLIOZ (tasimelteon) for the treatment of jet lag disorder, smith-magenis syndrome, pediatric Non-24, autism spectrum, and delayed sleep phase disorder; Fanapt (iloperidone) for the treatment of bipolar disorder and a long acting injectable formulation program for the treatment of schizophrenia; and Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, for the treatment of atopic dermatitis, gastroparesis, and motion sickness. The company's products under development also comprise VTR-297, a small molecule histone deacetylase inhibitor for the treatment of hematologic malignancies and with potential use as a treatment for various oncology indications; VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist for the treatment of psychiatric disorders; a portfolio of cystic fibrosis transmembrane conductance regulator activators and inhibitors for the treatment of dry eye and ocular inflammation, as well as BPO-27 for the treatment of secretory diarrhea disorders, including cholera; and VHX-896, the active metabolite of iloperidone. It markets its products in the United States, Europe, and Israel. Vanda Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in Washington, the District of Columbia.
How the Company Makes MoneyVanda Pharmaceuticals generates revenue primarily through the sales of its marketed products, Hetlioz and Fanapt. Hetlioz is a significant revenue driver, catering to patients with non-24-hour sleep-wake disorder, especially in the blind community. Fanapt, on the other hand, contributes to the company's income through its application in treating schizophrenia. The company may also engage in licensing agreements, collaborations, or partnerships with other pharmaceutical companies to expand its market reach or pipeline, although specific partnerships are not disclosed. Additionally, Vanda invests in research and development to advance its product pipeline, which could potentially create future revenue streams.
Vanda Financial Statement Overview
Summary
Vanda faces financial challenges with declining revenue and profitability impacting both income and cash flow statements. Despite a strong equity position, negative cash flows and operational inefficiencies are concerning.Income Statement
Vanda's income statement reveals declining revenue and profitability over recent years. The gross profit margin has remained strong at 100%, but the net profit margin has turned negative, indicating a loss in 2024. Revenue has decreased from 268.7M in 2021 to 198.8M in 2024. The EBIT and EBITDA margins have also turned negative, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with a low debt-to-equity ratio of approximately 0.015 in 2024, indicating low leverage. The equity ratio stands at 82%, suggesting financial stability. However, the return on equity has declined due to negative net income in 2024, posing a potential risk.70
Positive
Cash Flow
Vanda's cash flow statement highlights a concerning decline in operating cash flow, turning negative in 2024. The free cash flow has also deteriorated from a positive 12.4M in 2023 to negative 16.2M in 2024. The operating cash flow to net income ratio is negative, suggesting inefficiencies in cash generation relative to earnings.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 198.77M | 192.64M | 254.38M | 268.68M | 248.17M |
| Gross Profit | ||||
| 198.77M | 177.84M | 230.10M | 243.05M | 224.80M |
| EBIT | ||||
| -40.66M | -13.95M | 6.33M | 42.16M | 27.24M |
| EBITDA | ||||
| -40.66M | -10.94M | 9.06M | 45.01M | 30.10M |
| Net Income Common Stockholders | ||||
| -18.90M | 2.51M | 6.28M | 33.15M | 23.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 374.64M | 388.26M | 466.86M | 432.81M | 367.74M |
| Total Assets | ||||
| 656.20M | 648.44M | 634.25M | 593.79M | 533.46M |
| Total Debt | ||||
| 12.36M | 9.40M | 11.14M | 10.05M | 13.61M |
| Net Debt | ||||
| -89.96M | -126.42M | -123.89M | -42.02M | -47.42M |
| Total Liabilities | ||||
| 117.66M | 103.53M | 107.05M | 88.86M | 80.19M |
| Stockholders Equity | ||||
| 538.55M | 544.91M | 527.20M | 504.93M | 453.27M |
| Cash Flow | Free Cash Flow | |||
| -16.25M | 12.42M | 31.30M | 63.66M | 49.98M |
| Operating Cash Flow | ||||
| -15.76M | 12.80M | 31.98M | 64.21M | 51.77M |
| Investing Cash Flow | ||||
| -17.43M | -12.06M | 49.92M | -76.70M | -41.50M |
| Financing Cash Flow | ||||
| -155.00K | 0.00 | 734.00K | 3.55M | 5.63M |
Vanda Technical Analysis
Negative
4.59
Price Trends
4.67
Negative
4.76
Negative
5.02
Negative
Market Momentum
>-0.01
Positive
42.64
Neutral
14.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNDA, the sentiment is Negative. The current price of 4.59 is below the 20-day moving average (MA) of 4.86, below the 50-day MA of 4.67, and below the 200-day MA of 5.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 14.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNDA.
Vanda Risk Analysis
Vanda disclosed 58 risk factors in its most recent earnings report. Vanda reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vanda Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.85B | 12.55 | 38.89% | ― | 31.85% | ― | |
68 Neutral | $11.28B | 34.38 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $1.80B | 24.84 | 7.55% | ― | 8.94% | 5171.26% | |
63 Neutral | $14.04B | ― | -8.58% | ― | 46.62% | 50.50% | |
51 Neutral | $5.78B | ― | -231.63% | ― | 42.53% | -15.29% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
48 Neutral | $273.50M | ― | -3.49% | ― | 3.18% | -835.29% |
* Healthcare Sector Average
Performance Comparison
VNDA
Vanda
4.59
0.68
17.39%
ACAD
ACADIA Pharmaceuticals
16.61
-1.50
-8.28%
NBIX
Neurocrine
110.60
-27.14
-19.70%
SUPN
Supernus Pharmaceuticals
32.75
-0.42
-1.27%
ITCI
Intra-Cellular Therapies
131.92
65.25
97.87%
AXSM
Axsome Therapeutics
116.63
42.07
56.42%
Vanda Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -2.34% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with significant revenue growth from Fanapt and successful integration of Ponvory, countered by a substantial decline in Hetlioz sales due to generic competition and increased net losses. The company's robust pipeline and strategic initiatives suggest potential for future growth, but operational and regulatory challenges raise concerns.Highlights
Fanapt Revenue Growth
Fanapt net product sales increased by 18% in Q4 2024 compared to Q4 2023, driven by new patient starts increasing by over 160%.
Ponvory Introduction Success
Ponvory net product sales reached $27.8 million for the full year 2024, indicating successful integration and market penetration following its acquisition.
Pipeline Expansion
Multiple new drug applications filed or planned for 2025, including Vantrela for bipolar I disorder and schizophrenia, and Imsidolimab for generalized pustular psoriasis.
Revenue Growth
Total revenues for Q4 2024 were $53.2 million, a 17% increase compared to Q4 2023, and full-year 2024 revenues were up by 3%.
Lowlights
Hetlioz Revenue Decline
Hetlioz net product sales decreased by 23% for the full year 2024 compared to 2023 due to generic competition and elevated inventory levels.
Increased Net Loss
Vanda reported a net loss of $18.9 million for the full year 2024 compared to a net income of $2.5 million in 2023.
Operational Challenges
Increased SG&A expenses due to commercial launches and legal activities, which may continue to rise impacting future financials.
Regulatory and Market Challenges
Uncertainty around regulatory pathways and market competition, including potential impacts of Medicare benefit redesign on gross-to-net.
Company Guidance
During the Q4 2024 earnings call for Vanda Pharmaceuticals, the company provided guidance indicating a strong growth trajectory, driven by products such as Fanapt, Hetlioz, and Ponvory. The company reported total revenues of $198.8 million for the full year 2024, marking a 3% increase from 2023. Fanapt net sales grew by 4% to $94.3 million, and Ponvory contributed $27.8 million in its first year of sales. However, Hetlioz sales declined 23% to $76.7 million due to generic competition. Vanda projected Fanapt revenues between $210 million and $250 million for 2025, a 6% to 26% increase, and set a 2030 target of over $750 million for its psychiatry portfolio and over $1 billion in total annual revenue. The company plans to further expand its sales force and invest in direct-to-consumer advertising to support growth.Vanda Corporate Events
Product-Related AnnouncementsRegulatory Filings and Compliance
Vanda Pharmaceuticals’ New Drug Application Accepted by FDA
Negative
Mar 17, 2025
On March 14, 2025, Vanda Pharmaceuticals announced that the FDA has accepted its new drug application for tradipitant, aimed at treating motion sickness, with a decision expected by December 30, 2025. Despite successful trials showing significant efficacy in reducing motion-induced vomiting, Vanda criticized the FDA for delaying the review process, highlighting concerns about the agency’s impact on innovation and public health.
Executive/Board Changes
Vanda Sets 2025 Executive Compensation Plans
Neutral
Feb 20, 2025
On February 18, 2025, Vanda Pharmaceuticals Inc. announced that its Compensation Committee had awarded 2024 annual bonuses and approved 2025 annual base salaries and bonus target amounts for its executive officers. The committee also granted restricted stock unit awards under the company’s equity incentive plan, with vesting beginning in 2026. This decision follows a review of executive compensation by a consultancy firm and impacts key company stakeholders by setting financial incentives and aligning executive interests with long-term company goals.
Product-Related AnnouncementsRegulatory Filings and Compliance
Vanda Pharmaceuticals Files New Drug Application
Positive
Jan 27, 2025
On January 25, 2025, Vanda Pharmaceuticals Inc. announced on the social media platform X the filing of a new drug application for tradipitant, intended for treating motion sickness. The announcement highlights the drug’s potential significance, drawing historical parallels to the seasickness challenges faced during WWII and suggesting the condition’s broader impact beyond daily discomfort, potentially affecting national security.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.