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Is Vanda Pharmaceuticals Inc A Good Company To Invest In?

Vanda Pharmaceuticals Inc. is well known as a Washington-based biopharmaceutical company. This organization has various products under its belt such as tasimelteon (aka HETLIOZ), iloperidone (aka Fanapt), and Tradipitant. Their specialty is in commercializing innovative products related to central nervous system as well as other demanding conditions to address unmet medical needs.

Vanda Pharmaceutical’s revenue come mostly from the selling of their two most popular drugs, namely tasimelteon and iloperidone catering to Non-24-Hour Sleep-Wake Disorder and schizophrenia, respectively. Acknowledging the innovative nature of drug development, they have numerous product pipeline that are currently being developed for the following conditions:

Smith-Magenis Syndrome (SMS), jet lag disorder (JLD), delayed sleep phase disorder (DSPD) and paediatric Non-24;
bipolar disorder;
COVID-19 Acute Respiratory Distress Syndrome (ARDS), gastroparesis, atopic dermatitis, motion sickness;
hematologic malignancies;
and many more, thus making them to unique in the biotechnology realm to stay relevant with the current medical advances.

The trend of revenue as well as earning per share for Vanda Pharmaceuticals has been on an uptrend for the past three years, as illustrated below:

REVENUE & NET INCOME FROM 2017 TO 2019

In 2017, the revenue generated was reported at USD 165.08 million and it grew by 38% to USD 227.19 in 2019. Similarly, their net income also grew tremendously from USD -15.57 million in 2017 to USD 115.55 in 2019. The same pattern was also observed in the EPS whereby in 2017, it was reported as USD -0.35 per share in 2017 and it grew by 700% to USD 2.11 in 2019.

Morningstar

EARNINGS PER SHARE FROM 2017 TO 2019

In the recent quarter (June 2020), they have reported that net sales had reached new record of USD 62.2 million, which was 7% increase from previous quarter. Among this, USD 41.6 million constitute of revenue from HETLIOZ while the remaining USD 20.6 million from Fanapt. The outlook moving forward is very positive with the following target as guidance for 2020:

Full Year 2020 Financial Objectives	Full Year 2020 Guidance
Total Revenue	$240 – $260 million
HETLIOZ® Net Product Sales	$155 – $165 million
Fanapt® Net Oroduct Sales	$85 – $95 million
Year-end 2020 Cash	Greater than $340 million as compared to prior guidance of greater than $320 million

In addition to positive outlook with their sales target, they have also recently updated the progress of their existing ODYSSEY Study that targets to improve clinical outcome of COVID19 patients who have suffered with pneumonia. The drug of study, tradipitant was reported to have significant clinical improvement as early as day 7 upon administration of treatment.

Vanda Pharmaceuticals Inc.

Apart from COVID19 induced pneumonia, the same drug is also being tested for the treatment of both diabetic and idiopathic gastroparesis. In this regard, they are currently recruiting for patients to undertake this study and provide them the answers as to whether tradipitant can be further developed for gastroparesis.

Vanda Pharmaceuticals Inc.

Looking at the research and development that Vanda Pharmaceuticals currently pursuing, it is expected that the expansion of products for more indications will be fast-tracked and later will be translated to higher revenues in the long run.

DISCLOSURE

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