HC Wainwright has initiated coverage on Vanda Pharmaceuticals (VNDA), a commercial-stage biopharmaceutical company, with a ‘Buy’ rating and a price target of $18. The firm believes Vanda is undervalued, citing its strong commercial portfolio, promising pipeline, and potential for significant clinical and regulatory milestones. Despite generic competition and a recent FDA setback, HC Wainwright sees upside potential driven by Vanda’s existing products and ongoing development efforts.
Vanda Pharmaceuticals Inc. (VNDA) experienced a setback in its quest for FDA approval of tradipitant for treating gastroparesis symptoms. The FDA issued a Complete Response Letter (CRL) requesting additional studies, leading to a 6.1% decline in Vanda’s share price. Despite the setback, Vanda continues to pursue approval for tradipitant, with ongoing development for motion sickness prevention.
The U.S. Supreme Court has declined to review Vanda Pharmaceuticals’ attempt to revive patents for its sleep-disorder medication Hetlioz. The Federal Circuit had invalidated the patents in a legal battle with generic drugmakers Teva Pharmaceutical Industries and Apotex. The decision marks the Supreme Court’s avoidance of addressing when a patent can be invalidated as “obvious” since 2007.
