Vanda Pharmaceuticals Inc.
$6.09
-0.65%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -1.6).
Valuation inputs: P/E -1.6, earnings yield N/A, momentum -0.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -67.4%, ROIC -43.3%).
Profitability stack: net margin -1.0%, ROE -67.4%, ROIC -43.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +33.1%, momentum -0.7%, net margin -1.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Vanda Pharmaceuticals Inc. Market vs Earnings Trajectory
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Vanda Pharmaceuticals Inc. Fair Value Envelope
Vanda Pharmaceuticals Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Vanda Pharmaceuticals Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Vanda Pharmaceuticals Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Vanda Pharmaceuticals Inc. Street Expectations Map
Wall Street analysts project that VNDA stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 14.25, with estimates ranging from a low of 7.50 to a high of 21.00.
The consensus 1-year price target stands at 14.25, with estimates ranging from a low of 7.50 to a high of 21.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Vanda Pharmaceuticals Inc. Insider Positioning
During the last 12 months, insiders have purchased $42K and sold $2.86M worth of VNDA shares, resulting in $2.82M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
344.3K
2.82M
-2.8M
-$2.82M
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
10.0K
41.50K
7.0K
32.13K
+9K
+$9K
Top Buyers
Polymeropoulos Mihael Hristos
Director, Officer, Other: President And Ceo
$42K
Top Sellers
Polymeropoulos Mihael Hristos
Director, Officer, Other: President And Ceo
$1.28M
Moran Kevin Patrick
Officer: Svp, Cfo & Treasurer
$351K
Williams Timothy
Officer: Svp & General Counsel
$351K
Birznieks Gunther
Officer: Svp, Business Development
$351K
Wijkstrom Joakim
Officer: Svp, Chief Marketing Officer
$255K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $2.82M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
VNDA has not reported any dividend yield values in the available annual periods.
vnda Dividend History
Learning Layer
Related Guides
Build conviction on VNDA by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.