HC Wainwright initiated protection on Vanda Prescribed drugs, Inc. VNDA, a commercial-stage biopharmaceutical agency primarily specializing in neurological and neuropsychiatry problems.
HC Wainwright sees Vanda as having a well-established industrial portfolio, with a number of line extensions and life cycle administration alternatives throughout its three key franchises: Fanapt, Hetlioz, and Ponvory.
The analyst notes a pipeline of promising applications with quite a few alternatives for important scientific and regulatory milestones anticipated over the following 6 to 18 months.
Vanda trades at a virtually 30% low cost to its money reserves, giving it a damaging enterprise worth—a stunning valuation given its robust gross sales and projected profitability runway via late 2026, even when solely a few of its scientific and industrial initiatives succeed.
HC Wainwright initiates with a Purchase ranking with a value goal of $18.
Vanda’s worth proposition, nonetheless, has been obscured by the continued generic competitors inside its sleep problem portfolio centered round Hetlioz (tasimelteon) and a latest FDA Full Response Letter (CRL) for tradipitant in gastroparesis, the analyst notes.
Hetlioz, whereas forecast to herald about $75 million in 2024 gross sales, is assumed to say no post-2028; nonetheless, ongoing litigation may gradual generic entry, and Vanda might increase tasimelteon’s indications.
In October, Cycle Prescribed drugs reaffirmed its proposal to accumulate Vanda Prescribed drugs for an all-cash consideration of $8.00 per share.
Nonetheless, Vanda declined to simply accept the supply.
Earlier this 12 months, Future Pak withdrew its proposal to buy the corporate.
The analyst says previous M&A affords point out that Vanda is intrinsically undervalued and should grow to be a lovely M&A goal for a number of mid-size pharmaceutical companies if its close to—and medium-term pipeline and product portfolio initiatives are profitable.
“Given the damaging enterprise worth at which Vanda trades regardless of the continued traction of its marketed merchandise and the risk-mitigated nature of its pipeline and LCM initiatives, we discover it troublesome to visualise substantial draw back threat from present ranges,” HC Wainwright says.
Value Motion: VNDA inventory is up 0.87% at $4.69 on the final examine on Friday.
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