VNDA - Vanda Pharmaceuticals: Fanapt Bipolar Win Doesn't Change Much

2024-04-05 09:13:48 ET

Summary

• Vanda Pharmaceuticals Inc. stock is down 17% since my July "hold" rating; the FDA approved Fanapt for bipolar I disorder, and stock jumped.
• The approval of Fanapt for bipolar disorder may not significantly contribute to Vanda's bottom line as there are already several drugs approved for this indication.
• Despite a strong balance sheet, Vanda's future is heavily reliant on expanding existing drugs indications and new drug successes.
• Maintain "Hold" recommendation: Fanapt's bipolar indication is unlikely to significantly impact revenue; the company faces moderate-to-high risk.

Vanda: Assessing Fanapt's Impact on Bipolar Treatment Market

As of my July "hold" recommendation , Vanda Pharmaceuticals Inc. ( VNDA ) stock now is down 17%. During the same period, the S&P 500 Index (SP500) has returned 12%. Back then, I shed some light on the company's declining sales of their lead drug, Hetlioz, due to generic competition. I also expressed uncertainty regarding their pipeline....

For further details see: