Vanda Pharmaceuticals Reports $50M Revenue in Q1 2025, Net Loss Increases to $29.5M

Vanda Pharmaceuticals Inc. reported a total revenue of $50.0 million for the first quarter of 2025, marking a 5% increase from $47.5 million in the same period last year. The growth was primarily driven by a 14% rise in net product sales of Fanapt®, which reached $23.5 million, up from $20.6 million. HETLIOZ® also saw a modest increase in sales, rising to $20.9 million from $20.1 million, while PONVORY® experienced an 18% decline, with sales dropping to $5.6 million from $6.8 million. The overall increase in revenue was offset by a significant rise in operating expenses, which surged to $91.1 million from $56.7 million, leading to a net loss of $29.5 million, compared to a loss of $4.1 million in the prior year.

The company's operating expenses were significantly impacted by a 69% increase in research and development costs, which rose to $35.7 million, largely due to an upfront payment for the exclusive license to develop imsidolimab and increased expenses related to the development of Fanapt® and Bysanti™. Selling, general, and administrative expenses also increased by 66% to $50.1 million, reflecting heightened spending on commercial activities associated with the launches of Fanapt® and PONVORY®. The increase in expenses contributed to a loss from operations of $41.0 million, compared to a loss of $9.2 million in the same quarter of 2024.

In terms of operational developments, Vanda has expanded its sales force for Fanapt® to approximately 300 representatives, reflecting the product's growing market presence following its approval for the treatment of bipolar I disorder. The company also reported that total prescriptions for Fanapt® increased by approximately 14% year-over-year, with new patient starts nearly tripling. HETLIOZ® continues to maintain a significant market share despite facing generic competition, while PONVORY® has seen record-high new patient prescriptions since its launch.

Looking ahead, Vanda Pharmaceuticals anticipates fluctuations in its financial performance due to various factors, including the ongoing commercialization of its products, the impact of the Medicare Part D benefit redesign, and the progress of its research and development initiatives. The company has expressed confidence that its current cash, cash equivalents, and marketable securities, totaling $340.9 million as of March 31, 2025, will be sufficient to support its operations for at least the next 12 months. However, Vanda may seek additional capital through debt or equity financing to support its growth and development activities.