Vanda (VNDA) AI Stock Analysis

• Market Cap: $301.35M
• Dividend Yield: N/A
• Average Volume (3M): 419.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 11.78%
• EPS Growth: -504.50%
• Country: US
• Employees: 368
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.46
• Shares Outstanding: 59,089,130
• 10 Day Avg. Volume: 415,196
• 30 Day Avg. Volume: 419,288
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.12
• Enterprise Value/Revenue: -0.17
• Enterprise Value/Gross Profit: -0.19
• Enterprise Value/Ebitda: 0.44
• 1Y Price Target: $20.00
• Price Target Upside: 292.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ―

Vanda Pharmaceuticals' overall stock score reflects significant financial challenges, weak technical indicators, and unattractive valuation. Despite potential growth from new products and corporate events, operational inefficiencies and regulatory challenges weigh heavily on the stock.

Positive Factors

Orphan Drug Designation

The Orphan Drug Designation for VGT-1849B could provide market exclusivity and tax incentives, enhancing Vanda's long-term growth prospects in treating polycythemia vera.

Fanapt Revenue Growth

Fanapt's revenue growth indicates strong market demand and effective sales strategies, contributing to Vanda's stable revenue base and future expansion potential.

Pipeline Expansion

Vanda's robust pipeline with new drug applications positions the company for future growth, diversifying its portfolio and addressing unmet medical needs.

Negative Factors

Hetlioz Revenue Decline

The decline in Hetlioz sales due to generic competition poses a risk to Vanda's revenue stability, highlighting the need for strategic adjustments to maintain market share.

Increased Net Loss

The increased net loss reflects operational inefficiencies and financial challenges, potentially impacting Vanda's ability to invest in growth initiatives and R&D.

Regulatory Challenges

Regulatory uncertainties and market competition could hinder Vanda's product approvals and market access, affecting long-term strategic execution and growth.

Vanda Business Overview & Revenue Model

Company Description

Vanda Pharmaceuticals Inc. (VNDA) is a biopharmaceutical company that specializes in the development and commercialization of innovative therapies to address high unmet medical needs. The company is primarily focused on the central nervous system and develops treatments for neurological and behavioral disorders. Its portfolio includes products like Hetlioz, which is used for the treatment of non-24-hour sleep-wake disorder, and Fanapt, an antipsychotic medication for the treatment of schizophrenia.

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	203.47M	198.77M	192.64M	254.38M	268.68M	248.17M
Gross Profit	190.32M	187.46M	177.84M	230.10M	243.05M	224.80M
EBITDA	-81.32M	-32.53M	-10.94M	9.06M	45.01M	30.10M
Net Income	-66.94M	-18.90M	2.51M	6.28M	33.15M	23.34M
Balance Sheet
Total Assets	624.75M	656.20M	648.44M	634.25M	593.79M	533.46M
Cash, Cash Equivalents and Short-Term Investments	325.55M	374.64M	388.26M	466.86M	432.81M	367.74M
Total Debt	11.64M	12.36M	9.40M	11.14M	10.05M	13.61M
Total Liabilities	138.42M	117.66M	103.53M	107.05M	88.86M	80.19M
Stockholders Equity	486.33M	538.55M	544.91M	527.20M	504.93M	453.27M
Cash Flow
Free Cash Flow	-65.91M	-16.25M	12.42M	31.30M	63.66M	49.98M
Operating Cash Flow	-64.80M	-15.76M	12.80M	31.98M	64.21M	51.77M
Investing Cash Flow	44.68M	-17.43M	-12.06M	49.92M	-76.70M	-41.50M
Financing Cash Flow	-1.75M	-155.00K	0.00	734.00K	3.55M	5.63M

Vanda Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.1 is above the 20-day moving average (MA) of 4.63, above the 50-day MA of 4.56, and above the 200-day MA of 4.56, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 67.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.76 is Negative, 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
XOMA	61 Neutral	443.38M	-23.78	-16.87%	―	194.98%	38.01%
OABI	53 Neutral	231.77M	-2.65	-24.24%	―	6.05%	2.24%
PVLA	52 Neutral	659.05M	-4.73	―	―	-97.15%	54.85%
VNDA	48 Neutral	$301.35M	―	-13.01%	―	11.78%	-504.50%
VSTM	44 Neutral	547.14M	-2.53	―	―	-78.63%	1.88%
HUMA	42 Neutral	274.79M	-3.79	―	―	―	63.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Vanda Corporate Events

Vanda Pharmaceuticals’ New Drug Application Accepted by FDA

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.

Vanda Sets 2025 Executive Compensation Plans

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.