![](https://investorshub.advfn.com/uicon/81806.png?cb=1635633872)
Thursday, May 06, 2010 9:49:21 AM
Vanda Pharmaceuticals (VNDA) received a downgrade from Madison Williams last week to "reduce" from "buy."
Analyst David Moskowitz cited a physicians survey conducted by Madison Williams as the reason behind the downgrade, according to publicly released information. The survey of psychiatrists concluded that Novartis (NVS) was doing an "abysmal" job at handling Fanapt's commercial launch, which took place earlier this year.
With the downgrade, Madison also lowered their price target for VNDA to $7 from $19.
While not discounting this "survey" entirely, it sounds a bit bogus to me since the $21 million in sales posted by Novartis in the quarterly report is hardly an "abysmal" number, especially considering that Fanapt was not on the market for the full first quarter. As for the psychiatrists questioned in the survey, I'd have to wonder if it was a random scientific poll of opinions, or just a smattering of phone calls and emails to contacts in the rolodex sitting on David Moskowitz's desk.
I've never been a fan of surveys or polls, especially this type where the public has no idea who or what was asked and in what pretense.
The price target to seven dollars is also a questionable target, in my opinion, based on the fact that Vanda is sitting on over $200 million in the bank and has just turned its first-ever quarterly profit.
It's also hard to judge the potential of Fanapt based on just one quarter (that wasn't a full quarter) of sales numbers, especially when Novartis is involved - it's not like these guys are new to the game. I'd put more faith in the seven dollar number if the sales numbers don't grow to much more than the $21 million number over the next quarter or two, but even then it'll be too premature to call it a dead-beat drug.
The timing of this downgrade is curious as well, as it seemed to coincide with a rise in the number of shares sold short, as if those "in the know" knew it was coming.
The one piece of information that became apparent from Vanda's quarterly report that could have scared off some investors is the royalty number of ten percent that Novartis pays to Vanda - roughly in line with what Titan Pharmaceuticals (TTNP.pk) will receive.
Other than that, to see shares of VNDA trading for just over eight dollars when things are picking up for the company just doesn't add up - unless you're of the mind that a 'tree shake' is taking place and someone wants your shares.
This is one of those opportunities where the shorts will play their games and the small investor has a chance to take advantage of those games by buying-in for an attractive price.
What's even more attractive right now, however, is TTNP.PK falling to $1.20 - and in a similar fashion to VNDA-- there's real no reason for that drop either, other than it looks like someone else wants to pick up as many shares as they can while dropping the price.
Of course, this is all just my opinion - each investor should do his or her own DD.
Disclosure: Long TTNP, no position VNDA.
http://seekingalpha.com/article/203322-vanda-pharmaceuticals-downgrade-why-i-don-t-buy-it
Recent VNDA News
- Vanda Pharmaceuticals Board of Directors Determines that Recent Unsolicited Takeover Proposals Are Not in the Best Interests of the Company and its Shareholders • PR Newswire (US) • 06/20/2024 12:48:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/13/2024 08:38:04 PM
- Vanda Pharmaceuticals Confirms Receipt of Revised Unsolicited Takeover Proposal from Future Pak • PR Newswire (US) • 06/13/2024 02:02:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/06/2024 08:30:57 PM
- Vanda Pharmaceuticals Confirms Receipt of Unsolicited, Non-Binding Indication of Interest from Cycle Group Holdings Ltd. • PR Newswire (US) • 06/06/2024 01:24:00 PM
- Vanda Pharmaceuticals Announces Participation in the Jefferies 2024 Global Healthcare Conference • PR Newswire (US) • 05/30/2024 09:20:00 PM
- Vanda Pharmaceuticals Announces Completion of Transfer of FDA Marketing Authorization for PONVORY® • PR Newswire (US) • 05/30/2024 08:48:00 PM
- Vanda Pharmaceuticals Announces Presentations at SLEEP 2024 • PR Newswire (US) • 05/29/2024 06:17:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/24/2024 08:49:41 PM
- Vanda Pharmaceuticals Board of Directors Determines that Revised Unsolicited Takeover Proposal is Not in the Best Interests of the Company and its Shareholders • PR Newswire (US) • 05/24/2024 08:46:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:43:11 PM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 05/24/2024 08:31:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/21/2024 08:55:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/21/2024 08:53:14 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/21/2024 08:52:54 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/21/2024 08:34:42 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/20/2024 09:26:51 PM
- Vanda Pharmaceuticals Reports Positive Results from a Second Phase III Study of Tradipitant in Motion Sickness • PR Newswire (US) • 05/15/2024 12:45:00 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 05/13/2024 08:15:59 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 05/09/2024 09:15:58 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 11:07:02 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/08/2024 08:06:04 PM
- Vanda Pharmaceuticals Reports First Quarter 2024 Financial Results • PR Newswire (US) • 05/08/2024 08:01:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/07/2024 08:51:10 PM
- Vanda Pharmaceuticals Confirms Receipt of Revised Unsolicited Takeover Proposal from Future Pak • PR Newswire (US) • 05/07/2024 03:16:00 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM