Vanda (VNDA) AI Stock Analysis

• Market Cap: $433.77M
• Dividend Yield: N/A
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 11.12%
• EPS Growth: -406.76%
• Country: US
• Employees: 368
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.38
• Shares Outstanding: 59,096,630
• 10 Day Avg. Volume: 4,625,853
• 30 Day Avg. Volume: 2,429,328
• PEG Ratio: 0.02
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -17.14
• Enterprise Value/Market Cap: 0.03
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: -0.12
• 1Y Price Target: $13.63
• Price Target Upside: 85.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $7.50 ▲(2.18% Upside)

VNDA scores as moderate: strong balance-sheet strength and improving technical trend are partially offset by sharply weaker profitability and increased cash burn. Pipeline/regulatory progress (including NEREUS approval) supports the outlook, but rising losses and an FDA setback on HETLIOZ jet lag keep risk elevated.

Positive Factors

Low Leverage / Strong Balance Sheet

Very low leverage and sizable equity provide durable financial flexibility, enabling Vanda to fund R&D, commercial expansion, or discrete M&A without immediate reliance on dilutive financing. This reduces near‑term funding risk and supports execution over the next 2–6 months.

Commercial Execution / Fanapt Growth

Sustained prescription growth and an enlarged Fanapt sales force (~300 reps) show durable product adoption and scalable commercial infrastructure. Recurring prescription-driven sales create a stable revenue base that supports near-term cash flow and funds pipeline activities over multiple quarters.

Pipeline Validation and New Approval

FDA approval of NEREUS validates Vanda's NK‑1 platform and opens the first new pharmacologic motion‑sickness indication in decades. This structurally expands addressable markets, supports platform play for related nausea/gastroparesis programs, and strengthens long‑term revenue diversification.

Negative Factors

Negative Free Cash Flow / Cash Burn

Material negative operating and free cash flow increases funding pressure and reduces the firm's ability to self‑fund development. If sustained, cash burn could force external financing or scale‑backs, constraining R&D timelines and commercial investments over the medium term.

Deteriorating Profitability

Sharp margin deterioration and widening operating losses impair internal capital generation and lower resilience to shocks. Continued negative margins reduce return on equity and increase reliance on the balance sheet or external capital, pressuring strategic flexibility across 2–6 months.

Regulatory Setback on HETLIOZ Jet Lag sNDA

Regulatory rejection of the HETLIOZ jet‑lag filing removes a foreseeable label expansion and potential revenue stream. The decision creates prolonged regulatory risk, likely requiring additional data or trials and delaying commercial upside from a large patient population over the coming quarters.

Vanda Business Overview & Revenue Model

Company Description

Vanda 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 Money

Vanda 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 significant financial challenges with declining revenue and profitability impacting both income and cash flow statements. The balance sheet remains stable due to low debt levels, but operational inefficiencies and negative cash flows raise concerns.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.07M	198.77M	192.64M	254.38M	268.68M	248.17M
Gross Profit	198.52M	187.46M	177.84M	230.10M	243.05M	224.80M
EBITDA	-101.52M	-32.53M	-10.94M	9.06M	45.01M	34.52M
Net Income	-84.20M	-18.90M	2.51M	6.28M	33.15M	23.34M
Balance Sheet
Total Assets	601.14M	656.20M	648.44M	634.25M	593.79M	533.46M
Cash, Cash Equivalents and Short-Term Investments	293.75M	374.64M	388.26M	466.86M	432.81M	367.74M
Total Debt	6.23M	12.36M	9.40M	11.14M	12.37M	13.61M
Total Liabilities	135.14M	117.66M	103.53M	107.05M	88.86M	80.19M
Stockholders Equity	466.00M	538.55M	544.91M	527.20M	504.93M	453.27M
Cash Flow
Free Cash Flow	-82.95M	-16.25M	12.42M	31.30M	63.66M	49.98M
Operating Cash Flow	-81.84M	-15.76M	12.80M	31.98M	64.21M	51.77M
Investing Cash Flow	53.99M	-17.43M	-12.06M	49.92M	-76.70M	-41.50M
Financing Cash Flow	-2.42M	-155.00K	0.00	734.00K	3.55M	5.63M

Vanda Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNDA, the sentiment is Positive. The current price of 7.34 is above the 20-day moving average (MA) of 7.20, above the 50-day MA of 5.82, and above the 200-day MA of 4.92, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 42.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VNDA.

Vanda Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNDA	60 Neutral	$433.77M	-5.13	-16.72%	―	11.12%	-406.76%
OMER	52 Neutral	$953.61M	-6.67	―	―	―	12.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALDX	50 Neutral	$251.48M	-5.79	-64.31%	―	―	4.23%
EDIT	49 Neutral	$208.90M	-0.90	-211.37%	―	-24.90%	7.19%
ALEC	46 Neutral	$193.20M	-1.65	-121.98%	―	12.26%	37.36%
MREO	44 Neutral	$61.16M	-1.46	-69.98%	―	―	―

Vanda Corporate Events

Vanda Faces FDA Setback on HETLIOZ Jet Lag Application

On January 7, 2026, Vanda Pharmaceuticals received a decision letter from the U.S. Food and Drug Administration’s Center for Drug Evaluation and Research concluding that the supplemental New Drug Application for HETLIOZ® (tasimelteon) for the treatment of jet lag disorder could not be approved in its current form, despite the agency’s earlier agreement to conduct an expedited re-review under an October 2025 collaborative framework. The FDA acknowledged positive efficacy signals in Vanda’s controlled trials but found the data insufficient as substantial evidence of effectiveness, arguing that the phase-advance sleep models used in the studies do not adequately mirror real-world jet travel conditions. Vanda disputes this assessment, insisting that phase-advance models are widely accepted in circadian research and that its data, including simulated and actual transatlantic travel studies, demonstrate meaningful benefits for sleep and next-day alertness, supported by a well-established safety profile over more than a decade of use in other indications. The setback follows an August 2025 D.C. Circuit decision that had criticized the FDA’s prior review as cursory and vacated its earlier refusal, and Vanda now signals it will continue to engage with the regulator and pursue avenues to secure approval for the jet lag indication, a move with potential implications for the company’s growth prospects in the sleep-disorder market and for travelers seeking targeted treatment options.

The most recent analyst rating on (VNDA) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Vanda stock, see the VNDA Stock Forecast page.

Vanda Wins FDA Approval for NEREUS Motion Sickness Drug

On December 30, 2025, Vanda Pharmaceuticals announced that the U.S. Food and Drug Administration approved NEREUS™ (tradipitant), an oral NK-1 receptor antagonist, for the prevention of vomiting induced by motion in adults, marking the first new pharmacologic treatment for motion sickness in more than 40 years and underscoring the company’s position in addressing large, underserved patient populations. The approval, supported by three pivotal clinical trials showing more than 50–70% risk reductions in vomiting compared with placebo and a favorable safety profile for acute use, positions NEREUS™ to address a substantial global market of motion sickness sufferers and validates NK-1 antagonism as a platform mechanism that Vanda is already leveraging in late-stage programs for gastroparesis and for managing nausea and vomiting associated with GLP-1 receptor agonists, with implications for both general travel-related health and military operational readiness.

The most recent analyst rating on (VNDA) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Vanda stock, see the VNDA Stock Forecast page.

FDA Lifts Hold on Vanda’s Tradipitant Trials

On December 4, 2025, Vanda Pharmaceuticals announced that the FDA has lifted the partial clinical hold on their drug tradipitant, intended for treating motion sickness. This decision, following a formal dispute resolution and expedited review, allows Vanda to extend clinical studies of tradipitant, potentially positioning it as the first new pharmacologic treatment for motion sickness in over 40 years, with a pending New Drug Application review set for completion by December 30, 2025.

The most recent analyst rating on (VNDA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Vanda stock, see the VNDA Stock Forecast page.

Vanda Pharmaceuticals Updates on Tradipitant FDA Review

On November 28, 2025, Vanda Pharmaceuticals announced updates regarding its drug tradipitant for motion sickness. The FDA requested, and Vanda agreed to, a brief extension for the expedited re-review of the partial clinical hold on long-term studies, now set to complete by December 5, 2025. Additionally, the FDA issued labeling comments, initiating formal discussions for the New Drug Application of tradipitant, with a PDUFA target action date of December 30, 2025. These developments are crucial as Vanda aims to introduce the first new pharmacologic treatment for motion sickness in over four decades, potentially impacting the company’s market position and offering new solutions for stakeholders.

The most recent analyst rating on (VNDA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Vanda stock, see the VNDA Stock Forecast page.