Is it a Good Idea to Invest in Vanda Pharmaceuticals Stock Now?

Company Overview - Vanda Pharmaceuticals Inc (VNDA) generates revenue from three commercial products: Fanapt, Hetlioz, and Ponvory [1] - Fanapt is approved in the US for schizophrenia and acute treatment of manic or mixed episodes associated with bipolar I disorder [1] - Hetlioz is approved for non-24-hour sleep-wake disorder and nighttime sleep disturbances in Smith-Magenis syndrome [1] - Ponvory is an oral treatment for relapsing forms of multiple sclerosis, with US and Canada rights acquired from Actelion Pharmaceuticals Limited (a JNJ subsidiary) in December 2023 [2] Stock Performance - VNDA shares gained 13.9% in the past year, outperforming the industry's 16% decline [3] Pipeline Development - Vanda has a promising pipeline targeting neuroscience, immunology, and oncology indications [4] - Two pipeline candidates, tradipitant (for motion sickness-induced vomiting) and milsaperidone (for schizophrenia and acute bipolar I disorder), are expected to have FDA regulatory filings submitted shortly [4] - VGT-1849A, a novel antisense oligonucleotide (ASO)-based JAK2 inhibitor, received FDA Orphan Drug designation for treating polycythemia vera (PV) and other JAK2-driven hematologic malignancies [5][7] Financial Outlook - Vanda currently holds a Zacks Rank 1 (Strong Buy) [8] - Estimates for Vanda's 2025 loss per share have narrowed from 53 cents to 35 cents in the past 60 days [8] Industry Comparison - Other top-ranked biotech stocks include Puma Biotechnology Inc (PBYI) and Castle Biosciences Inc (CSTL), both with Zacks Rank 1 [9] - PBYI's 2025 EPS estimates increased from 42 cents to 54 cents in the past 60 days, despite a 38.8% share price decline over the past year [9] - CSTL's 2025 loss per share estimates narrowed from $1.88 to$1.84 in the past 60 days, with shares surging 30.9% over the past year [10] - PBYI beat earnings estimates in three of the trailing four quarters, with an average surprise of 32.78% [10] - CSTL beat earnings estimates in all four trailing quarters, with an average surprise of 172.72% [10]