Vanda (VNDA) AI Stock Analysis

• Market Cap: $467.54M
• Dividend Yield: N/A
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 11.12%
• EPS Growth: -406.76%
• Country: US
• Employees: 368
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.39
• Shares Outstanding: 59,108,030
• 10 Day Avg. Volume: 7,755,687
• 30 Day Avg. Volume: 3,275,805
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 2.41
• P/FCF Ratio: -4.71
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: -3.10
• 1Y Price Target: $15.50
• Price Target Upside: 95.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -2.26
• Revenue Forecast (FY): $257.43M

• Rating: 47 Neutral
• Price Target: $5.50 ▼(-30.47% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held down primarily by weak financial performance—large losses, significant cash burn, and declining equity—despite low leverage. Technical indicators also point to a bearish trend. These negatives are partially offset by constructive 2026 growth guidance and recent regulatory progress, but management’s expectation of higher cash burn and product headwinds temper the outlook.

Positive Factors

Fanapt commercial growth

Sustained prescription and new‑to‑brand gains indicate durable market penetration for Fanapt. Strong TRx/NBRx momentum and rep‑force expansion point to repeatable volume growth that can underpin mid‑term revenue runway and reduce reliance on one‑time events.

NEREUS FDA approval expands portfolio

Approval establishes a new, addressable commercial franchise and validates NK‑1 as a platform mechanism. NEREUS creates a durable revenue growth vector and cross‑program synergies (GLP‑1, gastroparesis), improving product diversification beyond legacy brands once launched.

Low financial leverage

Very low debt provides financing flexibility to support launches, R&D and potential setbacks without immediate refinancing pressure. This structural balance‑sheet strength helps absorb operating volatility and preserves optionality for strategic investments over the medium term.

Negative Factors

Large 2025 net loss and cash burn

Material 2025 losses and sharply negative operating cash flow materially shorten runway absent offsetting cash generation or financing. Persistent burn elevates dilution and refinancing needs, constraining strategic flexibility and increasing execution risk for multi‑year launch investments.

HETLIOZ decline from generic competition

Erosion of an established product reduces recurring cash flow and forces greater reliance on newer launches. Generic pressure also compresses realized pricing and worsens gross‑to‑net dynamics, raising structural revenue volatility and making forecasting and margin recovery harder.

Sustained higher operating expenses

Large OPEX increases driven by commercial scale‑up and R&D raise the structural break‑even threshold. Even with revenue growth, elevated SG&A and R&D make sustained profitability harder, perpetuating cash burn and increasing dependence on successful launches and regulatory outcomes.

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

Strong revenue rebound in 2025 contrasts with sharply worse profitability (deep net loss) and materially higher cash burn/negative free cash flow. Balance sheet leverage is low, but equity declined significantly, reflecting value erosion from losses.

Income Statement

Revenue rebounded sharply in 2025 (up ~190% year over year), but profitability deteriorated materially: net margin fell to about -102% with a large net loss (-$220.5M) versus a much smaller loss in 2024 (-$18.9M). The company previously demonstrated the ability to be profitable (2020–2022 positive net income; 2023 slightly positive), but results have since swung back into deep losses, indicating elevated earnings volatility despite strong top-line growth in the latest year.

Balance Sheet

Leverage is very low (debt-to-equity ~2% in both 2024 and 2025), which is a clear balance-sheet strength. However, equity declined meaningfully in 2025 (to ~$327.2M from ~$538.5M in 2024) and return on equity turned sharply negative in 2025, reflecting substantial value erosion from losses even though debt risk remains limited.

Cash Flow

Cash generation weakened significantly in 2025 with operating cash flow of -$109.4M and free cash flow of -$110.4M (both far worse than 2024’s roughly -$16M). While free cash flow growth appears strongly positive in 2025, this is driven by comparisons against prior negative levels rather than a move to sustainable cash generation; overall, the business is consuming cash and funding needs may rise if losses persist.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	216.10M	198.77M	192.64M	254.38M	268.68M
Gross Profit	203.06M	187.46M	177.84M	230.10M	243.05M
EBITDA	-139.25M	-32.53M	-10.94M	9.06M	45.01M
Net Income	-220.47M	-18.90M	2.51M	6.28M	33.15M
Balance Sheet
Total Assets	488.95M	656.20M	648.44M	634.25M	593.79M
Cash, Cash Equivalents and Short-Term Investments	263.85M	374.64M	388.26M	466.86M	432.81M
Total Debt	12.62M	12.36M	9.40M	11.14M	12.37M
Total Liabilities	161.76M	117.66M	103.53M	107.05M	88.86M
Stockholders Equity	327.19M	538.55M	544.91M	527.20M	504.93M
Cash Flow
Free Cash Flow	-110.44M	-16.25M	12.42M	31.30M	63.66M
Operating Cash Flow	-109.44M	-15.76M	12.80M	31.98M	64.21M
Investing Cash Flow	94.86M	-17.43M	-12.06M	49.92M	-76.70M
Financing Cash Flow	-2.91M	-155.00K	0.00	734.00K	3.55M

Vanda Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.91
• 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 7.91 is above the 20-day moving average (MA) of 7.38, above the 50-day MA of 7.55, and above the 200-day MA of 5.53, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 51.26 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMER	50 Neutral	$814.65M	-2.20	―	―	―	12.32%
ALDX	49 Neutral	$279.85M	-9.19	-58.73%	―	―	4.23%
VNDA	47 Neutral	$467.54M	-2.36	-50.93%	―	11.12%	-406.76%
ALEC	46 Neutral	$218.52M	-1.12	-181.56%	―	12.26%	37.36%
MREO	45 Neutral	$62.21M	-11.73	-70.00%	―	―	―
EDIT	41 Neutral	$184.99M	-3.11	-211.37%	―	-24.90%	7.19%

Vanda Corporate Events

Vanda Wins FDA Approval for Bysanti Antipsychotic Therapy

On February 20, 2026, Vanda Pharmaceuticals announced that the U.S. Food and Drug Administration approved Bysanti (milsaperidone) tablets as a first-line therapy for the acute treatment of manic or mixed episodes associated with bipolar I disorder and for the treatment of schizophrenia in adults. The new chemical entity, an atypical antipsychotic that rapidly converts to iloperidone and shares its established safety profile, leverages extensive clinical and real-world data from Fanapt, is being further studied as an adjunctive therapy in treatment-resistant major depressive disorder, and is expected to reach the U.S. market in the third quarter of 2026 with patent and data exclusivity protection into 2044, marking Vanda’s second drug approval in under two months and strengthening its position in psychiatric therapeutics.

Vanda highlighted Bysanti’s receptor binding profile, including strong alpha-adrenergic activity relative to dopamine and serotonin, as a rationale for exploring additional indications characterized by hostility, agitation and hyperarousal symptoms. The company emphasized that the drug’s approval, coming shortly after the December 2025 clearance of Nereus, underpins a period of accelerated innovation that could expand treatment options for millions of U.S. adults living with bipolar I disorder and schizophrenia while supporting Vanda’s growth prospects in the competitive antipsychotic market.

The most recent analyst rating on (VNDA) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Vanda stock, see the VNDA Stock Forecast page.

Vanda Board Approves 2025 Bonuses and 2026 Compensation

On February 18, 2026, Vanda’s board compensation committee approved 2025 cash bonuses for its named executive officers, including a bonus of $834,326 for President and CEO Mihael H. Polymeropoulos, following a peer-based compensation review by consultant Willis Towers Watson. Senior executives including the CFO, head of business development, chief marketing officer and general counsel received bonuses in the $272,129–$281,686 range for performance in the year ended December 31, 2025.

The committee also set 2026 base salaries and target bonus percentages, raising the CEO’s salary to $994,625 with an 80% bonus target, while other top executives received base pay of about $576,735–$596,990 with 45% bonus targets. In addition, the committee granted time-based RSUs that vest over four years starting March 1, 2027, and PSUs tied to relative total shareholder return versus the Nasdaq Biotechnology Index over a three-year period ending December 31, 2028, linking potential payouts ranging from 50% to 150% of target to long-term stock performance and executive retention.

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 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.