Vanda Pharmaceuticals Inc. (VNDA)
NASDAQ:VNDA
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Vanda
(NASDAQ:VNDA)
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Rating:56Neutral
Price Target:
$7.50
▲(7.14% Upside)
Action:ReiteratedDate:03/11/26
The score is held back primarily by weak financial performance—deepening losses, heavy cash burn, and equity erosion—despite low leverage. Offsetting this are strong technical momentum and a balanced but improving business outlook from the earnings call, including revenue growth guidance and recent approvals, though near-term cash burn and execution risks remain significant.
Positive Factors
Low financial leverage
Very low debt-to-equity gives Vanda durable financial flexibility to fund launches, commercial expansion and late-stage R&D without immediate solvency pressure. This reduces refinancing risk and supports strategic optionality across 2–6 months as product rollouts progress.
Negative Factors
Large FY2025 net loss and equity erosion
A materially negative net income and the large valuation allowance drove sharp equity decline and negative ROE in 2025. Persistent or recurring large losses would deplete capital reserves, raise funding needs, and increase the risk of dilutive capital raises that impair long‑term shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
Low financial leverage
Very low debt-to-equity gives Vanda durable financial flexibility to fund launches, commercial expansion and late-stage R&D without immediate solvency pressure. This reduces refinancing risk and supports strategic optionality across 2–6 months as product rollouts progress.
Read all positive factors
Vanda (VNDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$413.76M
Dividend YieldN/A
Average Volume (3M)3.94M
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth11.12%
EPS Growth-406.76%
CountryUS
Employees368
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.39
Shares Outstanding59,108,030
10 Day Avg. Volume2,379,743
30 Day Avg. Volume3,939,826
Financial Highlights & Ratios
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 Cap0.83
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda-2.67
Forecast
1Y Price Target
$17.33Price Target Upside147.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-2.26
Revenue Forecast (FY)$257.43M
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...
How the Company Makes Money
Vanda primarily makes money by selling its commercial prescription medicines in the United States and, where applicable, in other markets. Revenue is generated mainly from net product sales to wholesalers and specialty distributors (and, in some c...
Vanda Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced mix of strong commercial momentum and regulatory progress alongside material near-term financial and execution challenges. Highlights include robust Fanapt prescription growth, a meaningful FY revenue increase, FDA approval of Nereus and multiple late-stage pipeline advances with revenue guidance implying continued growth. Lowlights include a large FY net loss driven in part by a one-time $113.7M valuation allowance, substantially higher operating expenses, declining HETLIOZ sales amid generic competition, reduced cash balances with expected higher cash burn in 2026, and some clinical enrollment and inventory timing risks. Given the sizable commercial and regulatory positives tempered by significant near-term financial and execution risks, the overall tone is cautiously balanced.Positive Updates
Fanapt Strong Commercial Growth
Full-year Fanapt net product sales rose 24% to $117.3M (2025 vs 2024); total prescriptions (TRx) increased 28% and new-to-brand prescriptions (NBRx) surged 149% for the year. Q4 Fanapt sales were $33.2M, up 25% YoY and 6% QoQ; Q4 TRx +36% YoY and NBRx +108% YoY.
Negative Updates
Large Reported Net Loss Driven by One-Time Tax Charge
Vanda recorded a FY2025 net loss of $220.5M vs a net loss of $18.9M in FY2024; Q4 net loss was $141.2M vs $4.9M a year earlier. The results included a one-time noncash income tax expense of $113.7M related to recording a valuation allowance against deferred tax assets.
Read all updates
Q4-2025 Updates
Positive
Negative
Fanapt Strong Commercial Growth
Full-year Fanapt net product sales rose 24% to $117.3M (2025 vs 2024); total prescriptions (TRx) increased 28% and new-to-brand prescriptions (NBRx) surged 149% for the year. Q4 Fanapt sales were $33.2M, up 25% YoY and 6% QoQ; Q4 TRx +36% YoY and NBRx +108% YoY.
Read all positive updates
Company Guidance
Vanda's 2026 guidance is limited to currently commercialized products (Fanapt, HETLIOZ, PONVORY) and calls for total revenues of $230M–$260M (midpoint $245M, ~13% growth vs. 2025 revenue of $216.1M); Fanapt net product sales of $150M–$170M (midpoint $160M, ~36% growth vs. 2025 Fanapt sales of $117.3M) with assumed quarterly TRx growth of mid‑ to high‑single digits at the low end and low‑double‑digit to mid‑teen at the high end; other net product sales of $80M–$90M (midpoint $85M, reflecting further HETLIOZ decline from $71.4M and modest PONVORY growth from $27.4M in 2025); the company excluded upcoming launch/approval contributions from this guidance (e.g., Nereus, potential approvals), is not providing 2026 cash guidance but said 2026 cash burn will likely exceed 2025, noted year‑end 2025 cash of $263.8M (down $110.8M vs. 12/31/2024 and $29.9M vs. 9/30/2025), and warned that quarterization and Q1 results may be affected by insurance plan transitions, elevated HETLIOZ specialty‑pharmacy inventory, a $10M accrued (unpaid) Nereus payment and a potential $5M imsidolimab approval milestone.Vanda Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
28
Negative
| 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
Neutral
7.00
Price Trends
7.68
Negative
6.98
Positive
5.87
Positive
Market Momentum
-0.29
Positive
42.54
Neutral
33.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNDA, the sentiment is Neutral. The current price of 7 is below the 20-day moving average (MA) of 7.90, below the 50-day MA of 7.68, and above the 200-day MA of 5.87, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 33.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VNDA.
Vanda Risk Analysis
Vanda disclosed 60 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $413.76M | -2.36 | -49.24% | ― | 11.12% | -406.76% | |
53 Neutral | $772.81M | -325.70 | 1.71% | ― | ― | 12.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $265.97M | -1.12 | -224.96% | ― | 12.26% | 37.36% | |
44 Neutral | $261.32M | -1.14 | -523.29% | ― | -24.90% | 7.19% | |
42 Neutral | $50.92M | -1.59 | -83.02% | ― | ― | ― | |
41 Neutral | $99.90M | -9.19 | -63.75% | ― | ― | 4.23% |
* Healthcare Sector Average
VNDA
Vanda
7.00
2.86
69.08%
OMER
Omeros
10.90
3.84
54.39%
ALDX
Aldeyra Therapeutics
1.66
-0.23
-12.17%
EDIT
Editas Medicine
2.67
1.64
159.22%
MREO
Mereo Biopharma Group Plc
0.32
-1.67
-83.92%
ALEC
Alector
2.41
1.39
136.27%
Vanda Corporate Events
Executive/Board Changes
Vanda Announces Resignation of Senior Legal Executive
Neutral
Apr 2, 2026
On March 29, 2026, Vanda Pharmaceuticals Inc. announced that Timothy Williams resigned from his role as Senior Vice President, General Counsel and Secretary. His resignation, effective April 10, 2026, marks a change in the company’s executiv...
Business Operations and StrategyProduct-Related Announcements
Vanda Advances NEREUS Launch With Direct-to-Consumer Strategy
Positive
Mar 11, 2026
On March 10, 2026, Vanda Pharmaceuticals CEO Mihael Polymeropoulos appeared on Fox Business to discuss the company’s pricing and commercial strategy for NEREUSTM, its newly U.S. FDA-approved treatment for preventing vomiting caused by motion...
Business Operations and StrategyProduct-Related Announcements
Vanda Wins FDA Approval for Bysanti Antipsychotic Therapy
Positive
Feb 23, 2026
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...
Executive/Board Changes
Vanda Board Approves 2025 Bonuses and 2026 Compensation
Neutral
Feb 19, 2026
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 ...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
Vanda Faces FDA Setback on HETLIOZ Jet Lag Application
Negative
Jan 8, 2026
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) f...
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.