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Vanda Pharmaceuticals Inc. (VNDA)
NASDAQ:VNDA
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Vanda (VNDA) AI Stock Analysis

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VNDA

Vanda

(NASDAQ:VNDA)

Rating:48Neutral
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
Financial Performance
Vanda reported its 1Q25 financial results with a top-line revenue totaling $50M, beating the forecast of $45M.
Product Pipeline
Vanda's neuropsychiatry portfolio, including iloperidone and milsaperidone, is expected to drive significant future sales growth, potentially exceeding $1 billion by 2030.
Regulatory Approval
The FDA has granted Orphan Drug Designation for VGT-1849B, a selective peptide nucleic acid-based JAK2 inhibitor for treatment of polycythemia vera (PV).
Negative Factors
Financial Loss
The company recorded a net loss of $0.46 per share vs. the forecast for a net loss of $0.35 per share.
Generic Competition
HETLIOZ franchise continued to demonstrate resilience in the face of generic competition.

Vanda (VNDA) vs. SPDR S&P 500 ETF (SPY)

Vanda Business Overview & Revenue Model

Company DescriptionVanda 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 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. Significant growth in Fanapt revenue and prescriptions, as well as promising regulatory advancements for Bysanti, were overshadowed by increased net losses, declining HETLIOZ and PONVORY revenues, and higher operating expenses. While there are strong strategic developments, financial challenges remain significant.
Q2-2025 Updates
Positive Updates
Fanapt Revenue Growth
Fanapt revenue increased by 27% compared to the same period in the prior year, driven by the launch of the bipolar I indication.
Expansion of Fanapt Sales Force
Vanda expanded its sales force, resulting in a 40% increase in activity compared to Q1 2025 and over 400% compared to Q2 2024.
Strong Prescription Growth for Fanapt
Fanapt new-to-brand prescriptions increased by over 200% compared to the second quarter of 2024 and by over 50% compared to the first quarter of 2025.
Regulatory Advances for Bysanti
The NDA for Bysanti for bipolar I disorder and schizophrenia was accepted for filing by the FDA with exclusivity potentially extending into the 2040s.
PONVORY New Patient Growth
PONVORY new patient prescriptions in the second quarter of 2025 grew to a record high since the initiation of Vanda's commercial launch.
Negative Updates
Net Loss Increase
Vanda recorded a net loss of $56.7 million for the first 6 months of 2025 compared to a net loss of $8.7 million for the same period in 2024.
HETLIOZ Revenue Decline
HETLIOZ net product sales were $37.1 million for the first 6 months of 2025, a 4% decrease compared to the same period in 2024.
PONVORY Revenue Decline
PONVORY net product sales were $12.7 million for the first 6 months of 2025, an 18% decrease compared to the same period of 2024.
Increased Operating Expenses
Operating expenses for the first 6 months of 2025 were $182.2 million, up from $117.3 million for the same period in 2024, primarily due to increased SG&A and R&D expenses.
Company Guidance
During the Q2 2025 earnings call, Vanda Pharmaceuticals provided guidance for the fiscal year, projecting total revenue from its commercial products Fanapt, HETLIOZ, and PONVORY to be between $210 million and $250 million, reflecting a potential growth of 6% to 26% compared to 2024. Year-end cash is expected to range from $280 million to $320 million. The company highlighted the successful expansion of the Fanapt sales force, with a 27% increase in Fanapt revenue due to the launch of its bipolar I indication. Fanapt's total prescriptions increased by approximately 24% year-over-year. Vanda is also preparing for the potential launch of Bysanti, which could be commercially available by Q3 2026, assuming timely FDA approval. The company emphasized continued investments in its sales and marketing infrastructure to support its growth strategy, especially focusing on increasing awareness for its products across the U.S.

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
45
Neutral
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
70
Positive
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue203.47M198.77M192.64M254.38M268.68M248.17M
Gross Profit190.32M187.46M177.84M230.10M243.05M224.80M
EBITDA-81.32M-32.53M-10.94M9.06M45.01M30.10M
Net Income-66.94M-18.90M2.51M6.28M33.15M23.34M
Balance Sheet
Total Assets624.75M656.20M648.44M634.25M593.79M533.46M
Cash, Cash Equivalents and Short-Term Investments325.55M374.64M388.26M466.86M432.81M367.74M
Total Debt11.64M12.36M9.40M11.14M10.05M13.61M
Total Liabilities138.42M117.66M103.53M107.05M88.86M80.19M
Stockholders Equity486.33M538.55M544.91M527.20M504.93M453.27M
Cash Flow
Free Cash Flow-65.91M-16.25M12.42M31.30M63.66M49.98M
Operating Cash Flow-64.80M-15.76M12.80M31.98M64.21M51.77M
Investing Cash Flow44.68M-17.43M-12.06M49.92M-76.70M-41.50M
Financing Cash Flow-1.75M-155.00K0.00734.00K3.55M5.63M

Vanda Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.64
Price Trends
50DMA
4.63
Positive
100DMA
4.50
Positive
200DMA
4.59
Positive
Market Momentum
MACD
0.05
Negative
RSI
52.97
Neutral
STOCH
46.63
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 4.64 is above the 20-day moving average (MA) of 4.52, above the 50-day MA of 4.63, and above the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$427.91M-12.42%194.98%38.01%
53
Neutral
$196.32M-22.84%6.05%2.24%
52
Neutral
$582.95M-68.21%-97.15%54.85%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
48
Neutral
$274.17M-13.01%11.78%-504.50%
44
Neutral
$649.92M-437.92%-78.63%1.88%
42
Neutral
$231.22M-257.38%63.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VNDA
Vanda
4.64
-0.38
-7.57%
VSTM
Verastem
10.77
8.26
329.08%
XOMA
Xoma
35.24
8.14
30.04%
PVLA
Palvella Therapeutics
55.68
38.25
219.45%
HUMA
Humacyte
1.43
-3.96
-73.47%
OABI
OmniAb
1.71
-2.40
-58.39%

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 22, 2025