Vanda Pharmaceuticals Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Vanda Pharmaceuticals (NASDAQ: VNDA) reported full year 2025 results, with Fanapt net product sales +24% to $117.3M and total revenues of $216.1M. The FDA approved NEREUS (tradipitant) for motion-induced vomiting; Bysanti (milsaperidone) NDA review has a PDUFA date of Feb 21, 2026. The company recorded a one-time, non-cash $113.7M valuation allowance against deferred tax assets, contributing to a 2025 net loss of $220.5M. Cash totaled $263.8M as of Dec 31, 2025. 2026 revenue guidance for marketed products is $230–$260M.
Positive
- Fanapt sales +24% year-over-year to $117.3M
- NEREUS approval — first new oral therapy for motion vomiting in 40+ years
- 2026 guidance $230–$260M for marketed products
Negative
- Net loss $220.5M for full year 2025
- Valuation allowance $113.7M non-cash tax charge recorded
- Cash decline $110.8M decrease versus Dec 31, 2024
Market Reaction
Following this news, VNDA has declined 6.59%, reflecting a notable negative market reaction. Argus tracked a trough of -6.5% from its starting point during tracking. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $6.94. This price movement has removed approximately $31M from the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
VNDA was down 1.2% pre‑earnings while peers showed mixed moves: NMRA up 22.54%, CADL up slightly, and OMER, TNXP, LXEO down between about 1.5–3.22%, indicating some shared downside but no uniform biotech trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jul 31 | Q2 2025 earnings | Neutral | -8.8% | Modest sales growth with higher net loss and maintained 2025 revenue guidance. |
| May 07 | Q1 2025 earnings | Negative | -3.6% | Higher product sales but sharply wider net loss and upfront licensing payment. |
| Feb 13 | FY 2024 earnings | Neutral | -6.0% | Revenue growth with small annual net loss and long‑term psychiatry revenue targets. |
| Nov 06 | Q3 2024 earnings | Negative | +2.7% | Strong sales growth but swing from small profit to quarterly net loss. |
| Jul 31 | Q2 2024 earnings | Negative | -3.4% | Higher revenues but move from profit to loss and cash drawdown concerns. |
Recent earnings releases often coincided with negative price reactions despite revenue growth, suggesting investor focus on profitability and cash trends.
Over the last few earnings cycles, Vanda reported steady revenue growth, led by Fanapt®, but persistent net losses and rising expenses. Prior updates highlighted NDA/BLA progress for Bysanti™, tradipitant (NEREUS™), and imsidolimab, with revenue guidance typically reaffirmed. Historically, earnings headlines (e.g., on Feb 13, 2025 and May 7, 2025) were followed by modest share price declines, indicating cautious market reception to financial results and investment spending.
Historical Comparison
In the past year, VNDA issued 5 earnings updates, with an average move of about -3.83%. These reports frequently paired revenue growth with ongoing net losses, and the market response tended to be cautious or negative.
Across recent earnings, Vanda reported gradually rising net product sales, particularly from Fanapt®, while remaining in a net loss position as it invested in pipeline assets like Bysanti™, NEREUS™, and imsidolimab.
Market Pulse Summary
The stock is down -6.6% following this news. A negative reaction despite revenue growth fits prior earnings patterns, where releases averaged a -3.83% move. The market may focus on the sharp increase in 2025 net loss to $220.5 million and the $113.7 million non-cash tax charge, alongside cash use. At the same time, approvals like NEREUS™ and 2026 revenue guidance of $230–$260 million frame longer-term fundamentals.
Key Terms
nda regulatory
pdufa regulatory
phase iii medical
non-gaap financial
neurokinin-1 (nk-1) receptor antagonist medical
biologics license application regulatory
AI-generated analysis. Not financial advice.
- Full year 2025 Fanapt® net product sales increased by
24% to$117.3 million - Full year 2025 total revenues increased by
9% to$216.1 million - NEREUS™ (tradipitant) approved for the prevention of vomiting induced by motion
- Bysanti™ (milsaperidone) NDA for bipolar I disorder and schizophrenia under review by the FDA; PDUFA target action date of February 21, 2026
"2025 showed strong momentum at Vanda, led by Fanapt, with net product sales up
"The FDA approval of NEREUS (tradipitant) is a landmark - the first new oral therapy for motion-induced vomiting prevention in over 40 years - targeting a large addressable population of roughly 65–78 million
Financial Highlights
Fourth Quarter of 2025
- Total net product sales from Fanapt®, HETLIOZ® and PONVORY® were
$57 8% increase compared to$53.2 million - Fanapt® net product sales were
$33.2 million 25% increase compared to$26 - HETLIOZ® net product sales were
$16.4 million 18% decrease compared to$20.0 million - PONVORY® net product sales were
$7.6 million 17% increase compared to$6.5 million - Loss before income taxes was
$38.0 million $6.5 million - Provision for income taxes was
$103.2 million $1.6 million $113.7 million - Cash, cash equivalents and marketable securities (Cash) was
$263.8 million $29.9 million
Full Year 2025
- Total net product sales from Fanapt®, HETLIOZ® and PONVORY® were
$216 9% increase compared to$198.8 million - Fanapt® net product sales were
$117.3 million 24% increase compared to$94 - HETLIOZ® net product sales were
$71.4 million 7% decrease compared to$76.7 million - PONVORY® net product sales were
$27.4 million 2% decrease compared to$27.8 million - Loss before income taxes was
$138.6 million $22.9 million - Provision for income taxes was
$81.8 million $4.0 million $113.7 million - Cash was
$263.8 million $110.8 million
Key Operational Highlights – Commercial
- Fanapt® experienced significant growth, with total prescriptions (TRx)1 increasing by
36% and Fanapt® net product sales increasing by25% in the fourth quarter of 2025 as compared to the fourth quarter of 2024. Fanapt® total prescriptions increased by28% and Fanapt® net product sales increased by24% for the full year 2025 as compared to the full year 2024. New to brand prescriptions (NBRx)1 increased by108% in the fourth quarter of 2025 as compared to the fourth quarter of 2024 and increased by149% for the full year 2025 as compared to the full year 2024. - During 2025, Vanda's direct-to-consumer campaign, launched in the first quarter, continued to drive meaningful gains in brand awareness for the company and its products, Fanapt® and PONVORY®. The Company maintained strategic investments in its commercial infrastructure, including increased brand visibility through targeted sponsorships, with the goal of supporting long-term market leadership and future commercial launches. Fanapt® performance remains the focus of Vanda's commercial initiatives and encourages us to continue to invest in this differentiated medicine, and, if approved, the franchise-extending launch of Bysanti™.
Key Operational Highlights – Regulatory & Clinical Development
- The
U.S. Food and Drug Administration (FDA) has approved NEREUS™ (tradipitant), an oral neurokinin-1 (NK-1) receptor antagonist, for the prevention of vomiting induced by motion. - Bysanti™ (milsaperidone) New Drug Application (NDA) for bipolar I disorder and schizophrenia is under review by the FDA, with a Prescription Drug User Fee Act (PDUFA) target action date of February 21, 2026.
- A Bysanti™ Phase III clinical study for use as a once-daily adjunctive treatment for major depressive disorder (MDD) is enrolling patients and results are expected in 2026.
- Vanda announced positive results of a clinical study of NEREUSTM in the prevention of vomiting induced by a GLP-1 analog, Wegovy® (semaglutide). A Phase III clinical program is anticipated to be initiated in the first half of 2026.
- Imsidolimab Biologics License Application (BLA) in generalized pustular psoriasis (GPP) was submitted to the FDA in the fourth quarter of 2025.
- A Phase III study of VQW-765, an alpha-7 nicotinic acetylcholine receptor partial agonist, in the treatment of adults with social anxiety disorder has been initiated and study results are expected by the end of 2026.
- The Phase III study of the long acting injectable (LAI) formulation of iloperidone in the treatment of schizophrenia in relapse-prevention is enrolling patients.
- A clinical study of the LAI formulation of iloperidone in people with treatment-resistant hypertension is ongoing and Vanda is enrolling patients.
- On January 8, 2026, Vanda announced that it had received a decision letter from the FDA Center for Drug Evaluation and Research (CDER) concluding that the supplemental New Drug Application (sNDA) for HETLIOZ® (tasimelteon) for the treatment of jet lag disorder cannot be approved in the current form. This letter followed CDER's re-review of the jet lag sNDA under Vanda's collaborative framework agreement with the FDA. Vanda has requested that the FDA Commissioner resume hearing proceedings.
GAAP Financial Results
Net loss was
Net loss was
Provision for Income Taxes - One-Time, Non-Cash Charge Impact
In the fourth quarter of 2025, Vanda determined that it is not more-likely-than-not that it will realize its existing net deferred tax assets, having reviewed both positive and negative evidence as well as expectations of future taxable income, and recorded a valuation allowance against all its deferred tax assets. As a result, the fourth quarter of 2025 provision for income taxes includes a one-time, non-cash income tax charge of
- Effective tax rate would have increased to
23% , compared to the reported effective tax rate of negative59% . - Net loss would have decreased to
$106.8 million $220.5 million - Diluted net loss per share would have decreased to
$1.81 $3.74
Vanda provides Non-GAAP financial information, which it believes can enhance an overall understanding of its financial performance when considered together with GAAP figures. Refer to the sections of this press release entitled "Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information."
2026 Financial Guidance
Due to the recent and upcoming regulatory and commercial milestones, Vanda's 2026 financial guidance is limited to revenue guidance for currently commercialized products which includes Fanapt®, HETLIOZ® and PONVORY®. Vanda expects to achieve the following financial objectives in 2026.
Full Year 2026 Financial Objectives |
Full Year 2026 Guidance
|
Total revenues
| |
Fanapt® net product sales
| |
Other net product sales
|
Conference Call
Vanda has scheduled a conference call for today, Wednesday, February 11, 2026, at 4:30 PM ET. During the call, Vanda's management will discuss the fourth quarter and full year 2025 financial results and other corporate activities. Investors can call 1-888-596-4144 (domestic) or 1-646-968-2525 (international) and use passcode number 8728050. A replay of the call will be available on Wednesday, February 11, 2026, beginning at 8:30 PM ET and will be accessible until Wednesday, February 18, 2026 at 11:59 PM ET. The replay call-in number is 1-800-770-2030 for domestic callers and 1-609-800-9909 for international callers. The passcode number is 8728050.
The conference call will be broadcast simultaneously on Vanda's website, www.vandapharma.com. Investors should click on the Investors tab and are advised to go to the website at least 15 minutes early to register, download, and install any necessary software or presentations. The call will also be archived on Vanda's website for a period of 30 days.
References
- IQVIA Prescription Data
Non-GAAP Financial Information
Vanda believes that the above Non-GAAP financial information provided in this press release can assist investors in understanding and assessing the ongoing economics of Vanda's business and reflect how it manages the business internally and sets operational goals. The Non-GAAP effective tax rate, Non-GAAP net loss and Non-GAAP dilutive EPS exclude the one-time, non-cash valuation allowance income tax charge. Vanda believes that excluding the impact of this one-time, non-cash charge better reflects the recurring economic characteristics of its business, as well as Vanda's use of financial resources and its long-term performance.
These Non-GAAP financial measures, as presented, may not be comparable to similarly titled measures reported by other companies because all companies may not calculate these measures in an identical manner and, therefore, they are not necessarily an accurate measure of comparison between companies.
The presentation of these Non-GAAP financial measures is not intended to be considered in isolation or as a substitute for guidance prepared in accordance with GAAP. The principal limitation of these Non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in Vanda's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management in determining these Non-GAAP financial measures. In order to compensate for these limitations, Vanda presents its Non-GAAP financial information in connection with its GAAP financial information. Investors are encouraged to review the reconciliation of our Non-GAAP financial measures to their most directly comparable GAAP financial measure.
About Vanda Pharmaceuticals Inc.
Vanda is a leading global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. For more on Vanda Pharmaceuticals Inc., please visit www.vandapharma.com and follow us on X @vandapharma.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Various statements in this press release, including, but not limited to, the guidance provided under "2026 Financial Guidance" above and statements regarding Vanda's plans for pursuit of FDA approval of BysantiTM for the treatments of bipolar I disorder and schizophrenia and imsidolimab for the treatment of GPP, and the related timelines and prospects for approval; Vanda's commercial launch plans for NEREUSTM for the prevention of vomiting induced by motion; the prevalence of motion-induced vomiting in the
All written and verbal forward-looking statements attributable to Vanda or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Vanda cautions investors not to rely too heavily on the forward-looking statements Vanda makes or that are made on its behalf. The information in this press release is provided only as of the date of this press release, and Vanda undertakes no obligation, and specifically declines any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
VANDA PHARMACEUTICALS INC. (in thousands, except for share and per share amounts) (unaudited) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31 | December 31 | December 31 | December 31 | ||||
Revenues: | |||||||
Fanapt® net product sales | $ 33,218 | $ 26,649 | $ 117,302 | $ 94,297 | |||
HETLIOZ® net product sales | 16,389 | 20,044 | 71,431 | 76,675 | |||
PONVORY® net product sales | 7,609 | 6,492 | 27,372 | 27,800 | |||
Total revenues | 57,216 | 53,185 | 216,105 | 198,772 | |||
Operating expenses: | |||||||
Cost of goods sold excluding amortization | 3,833 | 2,590 | 13,044 | 11,314 | |||
Research and development | 29,006 | 19,840 | 109,271 | 74,431 | |||
Selling, general and administrative | 62,978 | 39,282 | 237,951 | 146,414 | |||
Intangible asset amortization | 1,752 | 1,752 | 7,007 | 7,273 | |||
Total operating expenses | 97,569 | 63,464 | 367,273 | 239,432 | |||
Loss from operations | (40,353) | (10,279) | (151,168) | (40,660) | |||
Other income, net | 2,351 | 3,782 | 12,521 | 17,739 | |||
Loss before income taxes | (38,002) | (6,497) | (138,647) | (22,921) | |||
Provision (benefit) for income taxes | 103,185 | (1,585) | 81,827 | (4,021) | |||
Net loss | $ (141,187) | $ (4,912) | $ (220,474) | $ (18,900) | |||
Net loss per share, basic | $ (2.39) | $ (0.08) | $ (3.74) | $ (0.33) | |||
Net loss per share, diluted | $ (2.39) | $ (0.08) | $ (3.74) | $ (0.33) | |||
Weighted average shares outstanding, basic | 59,098,957 | 58,308,487 | 58,930,157 | 58,149,087 | |||
Weighted average shares outstanding, diluted | 59,098,957 | 58,308,487 | 58,930,157 | 58,149,087 | |||
VANDA PHARMACEUTICALS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) | |||
December 31 | December 31 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 84,851 | $ 102,316 | |
Marketable securities | 178,996 | 272,327 | |
Accounts receivable, net | 54,578 | 47,101 | |
Inventory | 1,852 | 1,726 | |
Prepaid expenses and other current assets | 26,985 | 15,420 | |
Total current assets | 347,262 | 438,890 | |
Property and equipment, net | 2,248 | 2,132 | |
Operating lease right-of-use assets | 3,923 | 5,602 | |
Finance lease right-of-use assets | 7,343 | 4,943 | |
Intangible assets, net | 117,089 | 114,096 | |
Deferred tax assets | — | 81,440 | |
Non-current inventory and other | 11,083 | 9,101 | |
Total assets | $ 488,948 | $ 656,204 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 68,297 | $ 39,086 | |
Product revenue allowances | 76,865 | 60,895 | |
Total current liabilities | 145,162 | 99,981 | |
Operating lease non-current liabilities | 2,991 | 4,944 | |
Finance lease non-current liabilities | 4,076 | 3,146 | |
Other non-current liabilities | 9,533 | 9,587 | |
Total liabilities | 161,762 | 117,658 | |
Stockholders' equity: | |||
Common stock | 59 | 58 | |
Additional paid-in capital | 721,264 | 712,706 | |
Accumulated other comprehensive income | 629 | 74 | |
Accumulated deficit | (394,766) | (174,292) | |
Total stockholders' equity | 327,186 | 538,546 | |
Total liabilities and stockholders' equity | $ 488,948 | $ 656,204 | |
VANDA PHARMACEUTICALS INC. Reconciliation of GAAP to Non-GAAP Financial Information (in thousands, except for share and per share amounts) (unaudited) | |
Twelve Months | |
December 31 | |
Net loss | $ (220,474) |
Adjustments: | |
One-time, non-cash income tax charge | 113,699 |
Non-GAAP net loss | (106,775) |
Net loss per share, basic | $ (1.81) |
Net loss per share, diluted | $ (1.81) |
Weighted average shares outstanding, basic | 58,930,157 |
Weighted average shares outstanding, diluted | 58,930,157 |
Effective tax rate | (59) % |
Adjustments: | |
Effect of one-time, non-cash income tax charge | 82 % |
Non-GAAP effective tax rate | 23 % |
Corporate Contact:
Kevin Moran
Senior Vice President, Chief Financial Officer and Treasurer
Vanda Pharmaceuticals Inc.
202-734-3400
pr@vandapharma.com
Jim Golden / Jack Kelleher / Dan Moore
Collected Strategies
VANDA-CS@collectedstrategies.com
Follow us on X @vandapharma
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SOURCE Vanda Pharmaceuticals Inc.
FAQ
What drove Vanda (VNDA) full year 2025 revenue growth?
What is the significance of the FDA approval of NEREUS for VNDA?
When will the FDA decide on Bysanti (VNDA) and what would approval mean?
How did the $113.7M valuation allowance affect Vanda's 2025 results?
What guidance did Vanda (VNDA) give for 2026 revenue from marketed products?
