Vanda Pharmaceuticals’ shares fell 15.6% after earnings as investors were likely disappointed by significant sequential deceleration and margin pressures despite year-over-year growth and raised full-year revenue guidance.

• Total net product sales increased 3% year-over-year to $51.7 million but declined 10% sequentially from $57.2 million in Q4 2025.
• Fanapt sales rose 26% year-over-year to $29.6 million, driven by a 32% increase in total prescriptions and a 76% increase in new-to-brand prescriptions compared to Q1 2025.
• Fanapt net sales decreased 11% sequentially, with a 1% decline in total prescriptions due to typical insurance plan disruptions and deductible resets at the start of the year.
• Decline in HETLIOZ revenue attributed to generic competition weighed on overall performance.
• Despite management citing an increased full-year revenue guidance range ($240 million to $290 million), sequential deceleration and potential margin pressures likely led to investor caution and the steep share selloff.