Vanda Pharmaceuticals Releases 2026 Financial Objectives Amid Q4 Earnings Miss

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 4 days ago

0mins

VNDA-0.49%

Should l Buy VNDA?

Source: seekingalpha

Earnings Miss: Vanda Pharmaceuticals reported a Q4 GAAP EPS of -$2.39, missing estimates by $1.07, indicating ongoing profitability challenges that could undermine investor confidence.
Revenue Growth Lags: Despite a 7.6% year-over-year revenue increase to $57.22 million, the figure fell short of expectations by $2.05 million, reflecting unmet market demand that may necessitate adjustments in future sales strategies.
2026 Financial Guidance: The company projects total revenues between $230 million and $260 million for 2026, with Fanapt® net product sales expected to range from $150 million to $170 million, and other net product sales between $80 million and $90 million, indicating cautious optimism for future growth.
Negative Stock Reaction: Following the earnings release, Vanda's shares fell by 10.77% in after-hours trading, signaling market disappointment with the results, which could impact the company's future financing capabilities and market positioning.

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Analyst Views on VNDA

Wall Street analysts forecast VNDA stock price to rise

4 Analyst Rating

3 Buy

1 Hold

0 Sell

Strong Buy

Current: 6.120

Low

7.50

Averages

13.63

High

22.00

Current: 6.120

Low

7.50

Averages

13.63

High

22.00

H.C. Wainwright

maintain

$22

2026-01-08

Reason

H.C. Wainwright

Price Target

$22

AI Analysis

2026-01-08

maintain

Reason

H.C. Wainwright notes that Vanda Pharmaceuticals announced that it has received a decision letter from the FDA's Center for Drug Evaluation and Research concluding that the supplemental New Drug Application for HETLIOZ - tasimelteon - for the treatment of jet lag disorder cannot be approved in its current form. In the firm's view, the rejection of tasimelteon constitutes only a minor setback and may not mark the end of dialogue over the compound in this indication. Furthermore, Wainwright draws investors' attention to the fact that its valuation assessment did not include any contribution from sales of tasimelteon in treatment of jet lag. Accordingly, the firm reiterates a Buy rating and a price target of $22 on the shares.

H.C. Wainwright

Buy

maintain

$20 -> $22

2026-01-05

Reason

H.C. Wainwright

Price Target

$20 -> $22

2026-01-05

maintain

Buy

Reason

H.C. Wainwright raised the firm's price target on Vanda Pharmaceuticals to $22 from $20 and keeps a Buy rating on the shares. The firm cites the addition of tradipitant sales into the model following the approval for the treatment of motion sickness for the target boost.

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About VNDA

Vanda Pharmaceuticals Inc. is a global biopharmaceutical company focused on the development and commercialization of therapies to address unmet medical needs and improve the lives of patients. The Company’s commercial portfolio consist of three products: Fanapt for the acute treatment of manic or mixed episodes associated with bipolar I disorder and the treatment of schizophrenia, HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and for the treatment of nighttime sleep disturbances in Smith-Magenis syndrome (SMS) and PONVORY for the treatment of relapsing forms of multiple sclerosis (RMS), including clinically isolated syndrome, relapsing-remitting disease and active secondary progressive disease. In addition, it has a number of drugs and/or additional indications for current products in development, including Bysanti, Tradipitant, Imsidolimab, VTR-297, VQW-765, and others. Bysanti is the active metabolite of Fanapt.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Vanda Pharmaceuticals Under Investigation for Securities Fraud

3 days agoPRnewswire

Securities Fraud Investigation: Pomerantz LLP is investigating claims on behalf of Vanda Pharmaceuticals investors regarding potential securities fraud or unlawful business practices by the company and its executives, which could further damage the company's reputation and stock price.
FDA Application Rejection: On January 8, 2026, Vanda announced that its supplemental New Drug Application for HETLIOZ® was not approved by the FDA; although clinical trials showed positive efficacy, the FDA concluded that the data did not sufficiently demonstrate effectiveness for jet lag disorder, potentially impacting future sales and market outlook.
Significant Stock Decline: Following the FDA's rejection, Vanda's stock price fell by $1.20, a 14.05% drop, closing at $7.34 per share, which may lead to decreased investor confidence and trigger additional legal actions against the company.
Litigation Risk: As the investigation unfolds, Vanda may face class action lawsuits, with Pomerantz LLP, a prominent securities litigation firm, potentially seeking damages for investors, which could further affect the company's financial health and market performance.

Vanda Pharmaceuticals Q4 2025 Results Miss Estimates, Shares Drop 15%

3 days agoseekingalpha

Earnings Miss: Vanda Pharmaceuticals reported Q4 2025 financial results that fell short of expectations, leading to a ~15% drop in stock price during Thursday trading.
Weak Revenue Guidance: The company projects 2026 revenue between $230 million and $260 million, significantly below the consensus estimate of $271.28 million, indicating uncertainty in future growth prospects.
Surging Operating Expenses: Total operating expenses surged approximately 54% year-over-year to $97.6 million in Q4, severely impacting profitability and widening GAAP EPS loss to -$2.39.
Declining Cash Reserves: By the end of 2025, Vanda's cash, cash equivalents, and marketable securities totaled about $263.8 million, a sharp decline from $374.6 million on December 31, 2024, highlighting deteriorating financial health.

Vanda Pharmaceuticals Plans to Raise $200 Million Through Securities Offerings

3 days agostocktwits

Funding Strategy: Vanda Pharmaceuticals plans to raise up to $200 million through future securities offerings, providing the company with flexibility to access capital markets when conditions permit, which is crucial for its growth strategy.
Q4 Financial Performance: In the fourth quarter, Vanda reported total net product revenue of $57.2 million, an 8% year-on-year increase, but the loss per share (EPS) of $2.39 fell short of analysts' expectations of $59.28 million and a loss of $1.32, indicating challenges in meeting market forecasts.
Tax Provision Impact: The company recorded a $103.2 million tax provision, largely due to a $113.7 million valuation allowance against deferred tax assets, a non-cash charge that negatively impacted its financial results and reflects ongoing tax strategy adjustments.
Future Outlook: Vanda projects total revenue between $230 million and $260 million for 2026, with Fanapt sales expected to range from $150 million to $170 million, while other products are anticipated to contribute between $80 million and $90 million, demonstrating the company's confidence in its product pipeline and market potential.