Vanda Pharmaceuticals (NASDAQ:VNDA) Releases Quarterly Earnings Results, Misses Expectations By $0.46 EPS

Key Points

• Vanda Pharmaceuticals missed quarterly expectations: The company reported an adjusted loss of $1.04 per share versus the expected $0.58 loss, while revenue of $1.03 million fell far short of the $61.92 million estimate.
• Commercial performance was mixed: Fanapt prescriptions increased 31% year over year and sales rose 23% to $36.0 million, but Hetlioz revenue declined 66% to $5.6 million amid generic competition, while NEREUS sales remained limited by inventory concerns.
• Losses and cash usage worsened despite upcoming catalysts: The net loss widened to $62.5 million and operating expenses rose 25%; management expects 2026 cash burn to exceed 2025 levels, even as several pipeline milestones and potential product launches approach.

Vanda Pharmaceuticals (NASDAQ:VNDA - Get Free Report) announced its earnings results on Wednesday. The biopharmaceutical company reported ($1.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.58) by ($0.46), FiscalAI reports. The business had revenue of $1.03 million for the quarter, compared to analysts' expectations of $61.92 million. Vanda Pharmaceuticals had a negative return on equity of 32.26% and a negative net margin of 109.99%.

Here are the key takeaways from Vanda Pharmaceuticals' conference call:

• Fanapt continued strong growth: Second-quarter prescriptions rose 31% year over year and net product sales increased 23% to $36.0 million, supported by the bipolar I disorder launch and an expanded sales force.
• Multiple pipeline and commercial catalysts are approaching: BYSANTI is expected to launch in the second half of 2026, Quimilza has a December 2026 FDA action date, and late-stage readouts for NEREUS, VQW-765, and HETLIOZ are expected by year-end.
• Profitability and cash usage deteriorated: Second-quarter net loss widened to $62.5 million from $27.2 million a year earlier, while operating expenses rose 25% to $114.3 million; management expects 2026 cash burn to exceed 2025 levels.
• HETLIOZ sales remain pressured by generic competition: Second-quarter revenue fell 66% to $5.6 million, although approximately $7 million of shipments delayed until July will be recognized in the third quarter.
• NEREUS launch results remain difficult to assess: The product generated $1.0 million in recognized sales, while $12.6 million of wholesaler-related revenue was constrained because of uncertainty around patient demand and potential returns from elevated inventory levels.

Vanda Pharmaceuticals Stock Performance

Shares of NASDAQ:VNDA traded down $0.24 during trading on Wednesday, reaching $5.09. The company had a trading volume of 1,592,959 shares, compared to its average volume of 1,682,651. Vanda Pharmaceuticals has a fifty-two week low of $4.14 and a fifty-two week high of $9.94. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.16 and a quick ratio of 2.15. The stock's fifty day moving average price is $5.87 and its 200 day moving average price is $6.80. The firm has a market capitalization of $306.06 million, a price-to-earnings ratio of -1.26 and a beta of 0.64.

Hedge Funds Weigh In On Vanda Pharmaceuticals

A number of hedge funds and other institutional investors have recently bought and sold shares of VNDA. Vanguard Group Inc. raised its position in Vanda Pharmaceuticals by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 3,587,139 shares of the biopharmaceutical company's stock worth $17,900,000 after buying an additional 14,336 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of Vanda Pharmaceuticals by 220.0% in the first quarter. Millennium Management LLC now owns 2,139,591 shares of the biopharmaceutical company's stock valued at $9,821,000 after acquiring an additional 1,470,898 shares in the last quarter. Krensavage Asset Management LLC increased its stake in shares of Vanda Pharmaceuticals by 15.2% during the third quarter. Krensavage Asset Management LLC now owns 1,180,388 shares of the biopharmaceutical company's stock worth $5,890,000 after acquiring an additional 155,505 shares during the period. Empire Financial Management Company LLC increased its stake in shares of Vanda Pharmaceuticals by 46.2% during the fourth quarter. Empire Financial Management Company LLC now owns 1,108,245 shares of the biopharmaceutical company's stock worth $9,775,000 after acquiring an additional 350,154 shares during the period. Finally, Jacobs Levy Equity Management Inc. raised its holdings in Vanda Pharmaceuticals by 552.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 708,428 shares of the biopharmaceutical company's stock worth $6,248,000 after purchasing an additional 599,818 shares in the last quarter. 88.14% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Wall Street Zen cut shares of Vanda Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research note on Saturday, May 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Vanda Pharmaceuticals in a research note on Friday, July 17th. Finally, HC Wainwright reaffirmed a "buy" rating on shares of Vanda Pharmaceuticals in a report on Thursday, June 4th. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Vanda Pharmaceuticals currently has an average rating of "Moderate Buy" and an average target price of $14.30.

About Vanda Pharmaceuticals

Vanda Pharmaceuticals Inc is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for central nervous system (CNS) disorders and rare diseases. The company's research and development efforts center on sleep-wake regulation, mood disorders, and movement disorders. Vanda's mission is to address unmet medical needs by advancing novel molecules through clinical trials and regulatory review.

Vanda's flagship commercial product is Hetlioz (tasimelteon), a melatonin receptor agonist approved by the U.S.

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