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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on VNDA

Vanda Pharmaceuticals' recent performance was driven by several positive developments. The company's Q2 2025 revenue rose 4%, with Fanapt net product sales increasing 27% to $29.3 million. A federal appeals court overturned the FDA's order denying approval of Hetlioz for jet lag disorder, a significant victory for the company. Additionally, Vanda sought FDA Commissioner review of the decision to uphold approval of two generic versions of Hetlioz. The company's pipeline progress, including the NDA acceptance for milsaperidone and tradipitant, also contributed to its positive momentum.

1.c. Company Highlights

2. Vanda's Q3 2025 Earnings: Strong Fanapt Growth Amidst Increasing Operating Expenses

Vanda Pharmaceuticals reported total revenues of $56.3 million for the third quarter of 2025, an 18% increase compared to $47.7 million for the same period in 2024. The company's net loss was $22.6 million, compared to a net loss of $5.3 million in the third quarter of 2024. The actual EPS came out at -$0.38, relative to estimates at -$0.31. Operating expenses increased by $28.9 million, primarily driven by higher SG&A expenses and R&D expenses.

Publication Date: Nov -16

📋 Highlights
  • Total Revenue Growth: 9% increase to $158.9M in 9M 2025 vs. $145.6M in 9M 2024.
  • Fanapt Sales Surge: 24% growth to $84.1M (9M 2025) and 31% to $31.2M in Q3 2025.
  • Net Loss Expansion: -$79.3M net loss (9M 2025) vs. -$14M in 9M 2024 due to $269.7M operating expenses.
  • Prescription Growth: Fanapt TRx +35%, NBRx +147% (Q3 2025 vs. Q3 2024).
  • 2025 Guidance Revised: Revenue target of $210–230M (down from prior guidance) amid R&D and commercial investments.

Revenue Growth Driven by Fanapt

Fanapt net product sales were $31.2 million for the third quarter of 2025, a 31% increase compared to $23.9 million in the third quarter of 2024. Total prescriptions for Fanapt increased by 35% in the same period, driven by a 147% increase in new patient starts. HETLIOZ net product sales were $18 million, a 1% increase compared to $17.9 million in the third quarter of 2024. PONVORY net product sales were $7 million, an increase of 20% compared to $5.9 million in the third quarter of 2024.

Guidance Revision and Future Prospects

Vanda revised its guidance for 2025 due to strong Fanapt revenue growth and variable HETLIOZ revenue. The company expects total revenues from Fanapt, HETLIOZ, and PONVORY of between $210 million and $230 million. As Mihael Polymeropoulos mentioned, "Bysanti will perform well due to its highly promotionally sensitive class and potential patient support programs." The company is optimistic about the chances of tradipitant approval by the FDA, with a decision expected by December 30, 2026.

Valuation Metrics

With a P/S Ratio of 1.21 and an EV/EBITDA of -1.86, the market seems to be pricing in moderate growth expectations. The company's ROE and ROIC are negative, at -16.82% and -20.26%, respectively, indicating that the company is still in a growth phase and investing heavily in its commercial infrastructure. Analysts estimate next year's revenue growth at 21.5%, which may justify the current valuation.

3. NewsRoom

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FDA Lifts Partial Clinical Hold on Tradipitant for Motion Sickness

Dec -04

Source: prnewswire.com

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Should You Invest in This Under-the-Radar Weight Loss Stock?

Nov -30

Source: fool.com

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FDA Fast-Tracks Vanda's Motion Sickness Drug Review After Leadership Shake-Up

Nov -28

Source: feeds.benzinga.com

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Vanda Pharmaceuticals Provides Regulatory Update on Tradipitant for Motion Sickness

Nov -28

Source: prnewswire.com

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Vanda Pharmaceuticals: Commercial Execution Meets Pipeline Optionality

Nov -21

Source: seekingalpha.com

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VNDA Stock Jumps on Upbeat Tradipitant Data Cutting GLP-1 Side Effects

Nov -19

Source:

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Side Effects From Wegovy? This Vanda Pharmaceuticals' Drug Halves Vomiting In Patients

Nov -18

Source: benzinga.com

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Vanda Pharmaceuticals Reports Positive Results for Tradipitant in Preventing GLP-1 Induced Nausea and Vomiting

Nov -17

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Therapies

Expected Growth: 9.27%

Vanda Pharmaceuticals Inc.'s 9.27% growth is driven by increasing adoption of its novel therapies, particularly Hetlioz for Non-24-Hour Sleep-Wake Disorder and Fanapt for schizophrenia. Strong sales momentum, expanded label indications, and growing demand for rare disease treatments contribute to the company's rapid expansion.

7. Detailed Products

HETLIOZ

A melatonin receptor agonist indicated for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and for the treatment of nighttime sleep disturbances in patients with Smith-Magenis syndrome (SMS).

Fanapt

An atypical antipsychotic medication indicated for the treatment of schizophrenia.

8. Vanda Pharmaceuticals Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Vanda Pharmaceuticals Inc. has a moderate threat of substitutes due to the availability of alternative treatments for sleep disorders and other conditions.

Bargaining Power Of Customers

Vanda Pharmaceuticals Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of buyer concentration.

Bargaining Power Of Suppliers

Vanda Pharmaceuticals Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and the company's dependence on a few key suppliers.

Threat Of New Entrants

Vanda Pharmaceuticals Inc. has a high threat of new entrants due to the attractiveness of the pharmaceutical industry and the relatively low barriers to entry.

Intensity Of Rivalry

Vanda Pharmaceuticals Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.70%
Debt Cost 3.95%
Equity Weight 98.30%
Equity Cost 7.48%
WACC 7.42%
Leverage 1.73%

11. Quality Control: Vanda Pharmaceuticals Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.43$

Current Price

5.43$

Potential

-0.00%

Expected Cash-Flows