Vanda Pharmaceuticals Inc. (VNDA) AI Stock Analysis

Vanda Pharmaceuticals Inc. is a biopharmaceutical company that develops and commercializes therapies for significant unmet medical needs. Its commercial portfolio features HETLIOZ, approved for non-24-hour sleep-wake disorders, and Fanapt oral tablets, prescribed for the treatment of schizophrenia. In clinical development, Vanda is exploring label expansions for HETLIOZ across indications such as jet lag disorder and Smith-Magenis syndrome, alongside a long-acting injectable Fanapt formulation and bipolar disorder trials. Investigational pipeline assets include Tradipitant for gastroparesis and motion sickness, VTR-297 for hematologic malignancies and oncology, and VQW-765 for psychiatric disorders. Founded in 2002 and based in Washington, D.C., Vanda commercializes products in the United States, Europe, and Israel.

Vanda generated $216.1M in revenue for FY2025, up 8.7% from $198.8M in FY2024, though its 5-year revenue CAGR from FY2020 through FY2025 stands at -2.7%. Gross margin remained strong at 94.0% in FY2025, but operating margin dropped to -70.0% due in part to $109.3M in R&D spending. As a result, FY2025 net income reached -$220.5M, or -$3.73 per share. For the trailing twelve months, revenue was $215.7M with an operating margin of -126.3% and EPS of -$4.63. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.9% year-over-year while quarterly earnings declined 95.9%.

As of June 30, 2026, Vanda held $170.0M in cash and short-term investments against total debt of $22.8M, resulting in a net cash position of $147.2M. The company reported a current ratio of 1.61 and a debt-to-equity ratio of 0.10 against shareholders' equity of $220.2M. Operating cash flow in FY2025 was -$109.4M, resulting in free cash flow of -$110.4M after capital expenditures of $998,000. Over the past 5 years, share count increased by 5.2%.

Vanda carries a market capitalization of $243.7M and an enterprise value of $157.2M. The stock trades at a price-to-sales multiple of 1.1x and an EV/revenue of 0.7x, compared to a price-to-sales multiple of 4.1x for the median of its US-listed Healthcare peers. Its forward P/E sits at 103.1x versus the peer median of 17.3x, and its EV/EBITDA is 0.8x compared to the peer median of 12.0x. Over the past year, Vanda's stock fell 23.5%, trailing the S&P 500 (SPY) gain of 16.8%, and is down 78.1% over five years.

Wall Street coverage includes 4 Strong Buy ratings and 1 Hold rating among analysts. The mean price target is $11.75, representing an upside of 191.6% over the last close of $4.03. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$3.03 on revenue of $248.9M. For the following fiscal year, 5 analysts expect revenue to rise 35.5% to $337.2M with an EPS of -$0.96. Vanda has beaten EPS estimates in 1 of the last 4 quarters, with the next earnings date scheduled for November 4, 2026.

This page is an AI-written research summary of Vanda Pharmaceuticals Inc. (VNDA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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