Vanda Pharmaceuticals Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Vanda's total revenues increased by 23% to $47.7 million, up from $38.8 million in the same period of 2023. This growth was primarily driven by net product sales of $47.7 million, which included $23.9 million from Fanapt®, a 12% increase from $21.3 million in the prior year. HETLIOZ® sales rose slightly to $17.9 million, while PONVORY® generated $5.9 million in its first reporting period. However, for the nine months ended September 30, 2024, total revenues decreased by 1% to $145.6 million, compared to $147.4 million in 2023, with HETLIOZ® sales declining by 28% due to increased competition.

Operating expenses for the third quarter surged to $58.7 million, a 31% increase from $44.8 million in the same quarter of 2023. This rise was attributed to a 52% increase in selling, general, and administrative expenses, which reached $37.6 million. Consequently, Vanda reported a loss from operations of $11 million for the quarter, compared to a loss of $6 million in the same period last year. The net loss for the third quarter was $5.3 million, a stark contrast to a net income of $137,000 in 2023. For the nine-month period, the net loss totaled $14 million, compared to a net income of $4.9 million in the previous year.

The company’s cash and cash equivalents decreased to $100.5 million as of September 30, 2024, down from $135.8 million at the end of 2023. However, marketable securities increased to $275.8 million, reflecting a strategic focus on maintaining liquidity. Vanda's total stockholders' equity slightly decreased to $541.2 million from $544.9 million at the end of 2023.

Strategically, Vanda completed the acquisition of PONVORY® for $104.9 million in December 2023, which has been accounted for as an asset acquisition. The company is also advancing its product pipeline, with several drugs in development, including Milsaperidone and Tradipitant, and has initiated commercial activities for PONVORY®.

Vanda continues to face challenges, including potential generic competition for HETLIOZ® and the need for successful commercialization of its product portfolio to achieve profitability. The company is actively pursuing regulatory approvals and litigation related to its products, which may impact future performance.