Vanda Pharmaceuticals' Q4 2024: Unpacking Contradictions in Fanapt's Growth, Reimbursement, and Market Strategy

These are the key contradictions discussed in Vanda Pharmaceuticals' latest 2024Q4 earnings call, specifically including: Fanapt's growth trajectory and sales force expansion, reimbursement changes impacting gross to net, Fanapt's market response and potential competition, tradipitant's approval and launch strategy, sales force expansion strategy, and generic competition impact:



Strong Revenue Growth for Fanapt:
- Vanda Pharmaceuticals reported Fanapt net product sales of $94.3 million for the full year 2024, a 4% increase compared to $90.9 million in 2023.
- This increase was driven by the commercial launch of Fanapt in bipolar disorder and increased volume and price net of deductions.

Impact of Generic Competition on HETLIOZ:
- HETLIOZ net product sales were $76.7 million for the full year 2024, a 23% decrease compared to $100.2 million in 2023.
- The decrease was primarily due to continued generic competition in the U.S., which led to a significant decrease in unit sales and elevated inventory levels at specialty pharmacies.

PONVORY's Commercial Launch:
- PONVORY net product sales were $27.8 million for the full year 2024, including approximately $3 million of variable consideration that may be subject to dispute.
- The launch of PONVORY in multiple sclerosis contributed to the company's growth, with increased sales driven by a new specialty sales force and marketing programs.

Expansion of Sales Force for Fanapt:
- Vanda initiated a Phase III program for the long-acting injectable (LAI) formulation of Fanapt, expanding its sales force to 300 representatives from the existing 200.
- The expansion aims to increase reach and frequency, supporting the commercial launch in bipolar disorder and potentially other indications.

Pipeline Advancements and Anticipated Approvals:
- Vanda is expecting to submit a new drug application for Bysanti (milsaperidone) in the first quarter of 2025 and began a Phase III study for HETLIOZ in pediatric insomnia and delayed sleep phase disorder.
- These developments are part of Vanda's strategy to expand its psychiatry portfolio and explore new indications for its existing products, contributing to long-term growth.