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Vanda Pharmaceuticals Inc. (VNDA)
NASDAQ:VNDA
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Vanda
(NASDAQ:VNDA)
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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
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 (VNDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$257.07M
Dividend YieldN/A
Average Volume (3M)671.88K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth11.12%
EPS Growth-406.76%
CountryUS
Employees368
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.38
Shares Outstanding59,096,630
10 Day Avg. Volume878,975
30 Day Avg. Volume671,883
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.52
Price to Sales (P/S)1.40
P/FCF Ratio-17.14
Enterprise Value/Market Cap0.05
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda-0.15
Forecast
1Y Price Target
$15.50Price Target Upside249.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.69
Revenue Forecast (FY)$221.34M
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:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong commercial execution and pipeline advancements, with significant growth in Fanapt sales and strategic investments in infrastructure. However, the financial performance was marred by a significant net loss and increased operating expenses. Overall, the positives in sales and pipeline progression were balanced by financial challenges.Q3-2025 Updates
Positive Updates
Strong Commercial Execution
Total net product sales reached $56.3 million, up 18% year-over-year, with a 31% increase in Fanapt sales and 35% growth in prescriptions.
Advancing Pipeline
The tradipitant NDA for motion sickness under FDA review with a PDUFA target action date of December 30, 2025; the Bysanti NDA for bipolar I disorder and schizophrenia under FDA review with a PDUFA target action date of February 21, 2026; and the anticipated Q4 submission of the imsidolimab BLA for generalized pustular psoriasis.
Fanapt Sales Force Expansion
A dedicated sales force of approximately 300 representatives led to a significant increase in activity, with the total number of calls growing by more than 20% compared to Q2 2025 and over 100% compared to Q3 2024.
HETLIOZ Market Leadership
HETLIOZ continues to be the market share leader despite the availability of 3 generic products, demonstrating strong brand loyalty.
Negative Updates
Net Loss Increase
For the first 9 months of 2025, Vanda recorded a net loss of $79.3 million compared to a net loss of $14 million for the same period in 2024.
Decrease in PONVORY and HETLIOZ Sales
PONVORY net product sales decreased by 7% compared to the same period in 2024, and HETLIOZ sales saw a 3% decrease due to volume reductions.
Increased Operating Expenses
Operating expenses for the first 9 months of 2025 were $269.7 million compared to $176 million for the same period in 2024, mainly due to higher SG&A and R&D expenses.
Company Guidance
During the Q3 2025 earnings call, Vanda Pharmaceuticals provided several key metrics and updates. The company reported total net product sales of $56.3 million, reflecting an 18% year-over-year increase. Fanapt sales grew by 31%, with a 35% rise in prescriptions, while HETLIOZ maintained a stable performance with $18 million in sales despite generic competition. Vanda highlighted its advancing pipeline, including the tradipitant NDA for motion sickness, with an FDA PDUFA target action date of December 30, 2025, and the Bysanti NDA for bipolar I disorder and schizophrenia, with a PDUFA date of February 21, 2026. The company is also preparing to submit a BLA for imsidolimab for generalized pustular psoriasis in Q4 2025. Vanda continues strategic investments in its commercial infrastructure, including expanding the Fanapt sales force to approximately 300 representatives, achieving over 100% increase in activity compared to Q3 2024. Total revenue from Fanapt, HETLIOZ, and PONVORY reached $158.9 million for the first nine months of 2025. The company revised its 2025 guidance, expecting total revenues between $210 million and $230 million, with year-end cash projections adjusted to between $260 million and $290 million.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.45
Neutral
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.70
Positive
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.40
Negative
| 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
Negative
4.44
Price Trends
4.93
Negative
4.77
Negative
4.63
Negative
Market Momentum
-0.14
Positive
35.38
Neutral
10.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNDA, the sentiment is Negative. The current price of 4.44 is below the 20-day moving average (MA) of 5.13, below the 50-day MA of 4.93, and below the 200-day MA of 4.63, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 10.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $257.07M | ― | -16.72% | ― | 11.12% | -406.76% | |
45 Neutral | $133.60M | ― | -103.98% | ― | 46.78% | 35.46% | |
43 Neutral | $283.02M | ― | -75.08% | ― | ― | ― | |
41 Neutral | $249.98M | ― | -188.58% | ― | -41.97% | -20.86% | |
40 Underperform | $458.02M | ― | ― | ― | ― | 10.15% | |
37 Underperform | $294.69M | ― | -65.91% | ― | ― | 4.23% |
* Healthcare Sector Average
VNDA
Vanda
4.44
-0.58
-11.55%
OMER
Omeros
6.99
2.49
55.33%
ALDX
Aldeyra Therapeutics
4.81
-0.53
-9.93%
EDIT
Editas Medicine
2.78
-0.39
-12.30%
MREO
Mereo Biopharma Group Plc
1.80
-2.29
-55.99%
ALEC
Alector
1.30
-4.34
-76.95%
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.