Vanda Pharmaceuticals ((VNDA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Vanda Pharmaceuticals’ recent earnings call presented a mixed sentiment, with notable achievements in commercial execution and pipeline progress, yet overshadowed by financial setbacks. The company reported impressive growth in Fanapt sales and strategic infrastructure investments, but these positives were balanced by a significant net loss and increased operating expenses.
Strong Commercial Execution
Vanda Pharmaceuticals showcased robust commercial execution with total net product sales reaching $56.3 million, marking an 18% increase year-over-year. Notably, Fanapt sales surged by 31%, accompanied by a 35% growth in prescriptions, highlighting the company’s effective market strategies.
Advancing Pipeline
The company’s pipeline is advancing with significant milestones. The tradipitant NDA for motion sickness is under FDA review, with a PDUFA target action date set for December 30, 2025. Additionally, the Bysanti NDA for bipolar I disorder and schizophrenia is also under review, with a PDUFA date of February 21, 2026. Vanda is preparing for a Q4 submission of the imsidolimab BLA for generalized pustular psoriasis.
Fanapt Sales Force Expansion
Vanda has expanded its Fanapt sales force to approximately 300 representatives, resulting in a substantial increase in activity. The total number of calls grew by more than 20% compared to Q2 2025 and over 100% compared to Q3 2024, demonstrating the effectiveness of the expanded sales team.
HETLIOZ Market Leadership
Despite the presence of three generic competitors, HETLIOZ continues to lead the market, showcasing strong brand loyalty. This resilience highlights the product’s established position and customer trust.
Net Loss Increase
Vanda reported a significant increase in net loss, amounting to $79.3 million for the first nine months of 2025, compared to a $14 million net loss during the same period in 2024. This increase underscores the financial challenges the company faces despite its commercial successes.
Decrease in PONVORY and HETLIOZ Sales
The company experienced a decline in sales for PONVORY and HETLIOZ, with PONVORY sales decreasing by 7% and HETLIOZ sales dropping by 3% due to volume reductions. This decline highlights the competitive pressures and market dynamics affecting these products.
Increased Operating Expenses
Operating expenses rose significantly, reaching $269.7 million for the first nine months of 2025, up from $176 million for the same period in 2024. The increase is attributed to higher SG&A and R&D expenses, reflecting the company’s investment in growth and development.
Forward-Looking Guidance
Looking ahead, Vanda Pharmaceuticals provided revised guidance for 2025, projecting total revenues between $210 million and $230 million. The company expects year-end cash projections to range between $260 million and $290 million. These forecasts reflect Vanda’s strategic focus on growth and its commitment to advancing its pipeline and commercial infrastructure.
In summary, Vanda Pharmaceuticals’ earnings call painted a picture of a company balancing significant commercial and pipeline achievements with financial hurdles. While Fanapt sales and pipeline advancements are promising, the increased net loss and operating expenses pose challenges. The company’s forward-looking guidance suggests a strategic focus on growth, aiming to navigate these financial complexities successfully.