Vanda (VNDA) AI Stock Analysis

• Market Cap: $245.17M
• Dividend Yield: N/A
• Average Volume (3M): 627.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 3.18%
• EPS Growth: -835.29%
• Country: US
• Employees: 368
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 58,934,483
• 10 Day Avg. Volume: 670,208
• 30 Day Avg. Volume: 627,883
• PEG Ratio: 0.68
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.33
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.78
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: $16.50
• Price Target Upside: 282.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

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 a top-line revenue of $50 million, surpassing the forecasted $45 million, indicating strong financial performance.

Product Development

The FDA has accepted the New Drug Application for Bysanti™ with no review issues, signaling potential for future product approval.

Strategic Growth

Vanda's expansion of its psychiatry sales force to approximately 300 representatives reflects a strategic move to bolster market presence.

Negative Factors

Operational Costs

Operating expenses are expected to be impacted by a $15 million payment to Vanda's licensor for imsidolimab.

Regulatory Challenges

Historical issues with the FDA, including the denial of tradipitant for gastroparesis, suggest potential regulatory hurdles for future approvals.

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

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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
198.77M	192.64M	254.38M	268.68M	248.17M
	Gross Profit
187.46M	177.84M	230.10M	243.05M	224.80M
	EBIT
-40.66M	-13.95M	6.33M	42.16M	27.24M
	EBITDA
-32.53M	-10.94M	9.06M	45.01M	30.10M
	Net Income Common Stockholders
-18.90M	2.51M	6.28M	33.15M	23.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
374.64M	388.26M	466.86M	432.81M	367.74M
	Total Assets
656.20M	648.44M	634.25M	593.79M	533.46M
	Total Debt
12.36M	9.40M	11.14M	10.05M	13.61M
	Net Debt
-89.96M	-126.42M	-123.89M	-42.02M	-47.42M
	Total Liabilities
117.66M	103.53M	107.05M	88.86M	80.19M
	Stockholders Equity
538.55M	544.91M	527.20M	504.93M	453.27M
Cash Flow		Free Cash Flow
-16.25M	12.42M	31.30M	63.66M	49.98M
	Operating Cash Flow
-15.76M	12.80M	31.98M	64.21M	51.77M
	Investing Cash Flow
-17.43M	-12.06M	49.92M	-76.70M	-41.50M
	Financing Cash Flow
-155.00K	0.00	734.00K	3.55M	5.63M

Vanda Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.31 is above the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.47, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 22.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNDA.

Vanda Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XOMA	56 Neutral	$322.99M	―	-3.42%	―	638.41%	71.89%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
PVLA	52 Neutral	$243.78M	―	-68.21%	―	-97.15%	54.85%
OABI	49 Neutral	$193.29M	―	-21.32%	―	27.07%	6.74%
VNDA	48 Neutral	$245.17M	―	-8.38%	―	3.18%	-835.29%
VSTM	44 Neutral	$417.06M	―	-2159.50%	―	―	14.39%
HUMA	42 Neutral	$345.91M	―	-257.38%	―	―	-17.92%

Vanda Corporate Events

Vanda Pharmaceuticals’ New Drug Application Accepted by FDA

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.

Vanda Sets 2025 Executive Compensation Plans

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.