Stephen Ray Mitchell, a director at Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), recently sold 5,000 shares of the company's common stock. The shares were sold at a weighted average price of $5.1726, resulting in a total transaction value of $25,863. Following the sale, Mitchell retains ownership of 44,857 shares in the company. According to the filing, the shares were sold in multiple transactions at prices ranging from $5.15 to $5.195.
In other recent news, Vanda Pharmaceuticals reported mixed results for Q3 2024. Total (EPA:TTEF) revenues for the quarter were $145.6 million, a slight decrease from the previous year's $147.4 million, primarily due to a 28% decline in Hetlioz sales, attributed to generic competition. On the other hand, the company saw an increase in revenue with PONVORY sales reaching $21.3 million after its acquisition, and the launch of Fanapt for bipolar I disorder. Despite reporting a net loss of $14 million for the first nine months of the year, Vanda updated its 2024 guidance, expecting total net product sales of $190 million to $210 million. With preparations underway for new drug applications and clinical trials for milsaperidone and PONVORY in additional indications, these are recent developments that investors should note.
InvestingPro Insights
While Stephen Ray Mitchell's recent sale of Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) shares might raise eyebrows, a deeper look at the company's financials reveals a more nuanced picture. According to InvestingPro data, Vanda's market capitalization stands at $286.88 million, with the stock trading at a price-to-book ratio of 0.54 as of the last twelve months ending Q3 2024. This suggests the stock might be undervalued relative to its book value.
Despite the company's negative operating income of -$37.48 million over the same period, there are some positive indicators. An InvestingPro Tip highlights that Vanda holds more cash than debt on its balance sheet, indicating financial stability. Additionally, the company boasts impressive gross profit margins, with a gross profit of $178.67 million and a remarkable gross profit margin of 93.62% for the last twelve months.
It's worth noting that while Vanda is not currently profitable, another InvestingPro Tip suggests that analysts predict the company will be profitable this year. This optimism is further supported by the expectation that net income will grow this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Vanda Pharmaceuticals, providing a deeper understanding of the company's financial health and prospects.
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