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Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), a biopharmaceutical company with a market capitalization of $262 million and impressive gross margins of 94%, disclosed recent changes to its executive compensation following a review by the Compensation Committee of the Board of Directors. According to InvestingPro analysis, the company appears undervalued at current prices, maintaining a strong balance sheet with a current ratio of 4.39. The announcement, based on a Securities and Exchange Commission filing, revealed adjustments to annual bonuses and base salaries of its top executives, along with the awarding of restricted stock units (RSUs).
On Monday, February 18, 2025, the Compensation Committee awarded bonuses for the 2024 fiscal year and set base salaries and bonus targets for 2025. These decisions were made after consulting with Willis Towers Watson (NASDAQ:WTW), a compensation consultant, to analyze the company’s executive pay relative to its peers.
The 2024 bonuses for the named executive officers included $947,928 for Mihael Polymeropoulos, M.D., President, Chief Executive Officer, and Chairman of the Board. Senior Vice Presidents Kevin Moran, Gunther Birznieks, and Timothy Williams each received $309,181, while Senior Vice President and Chief Marketing Officer Joakim Wijkstrom was awarded a bonus of $320,040.
For 2025, the Compensation Committee approved base salaries with Dr. Polymeropoulos receiving $965,655 and a target bonus of 80% of his base salary. Senior Vice Presidents Moran, Birznieks, Williams, and Wijkstrom were set to receive base salaries ranging from $559,935 to $579,600, with each having a target bonus of 45%.
Additionally, the Compensation Committee granted RSU awards to the named executive officers. Dr. Polymeropoulos was awarded 450,000 shares, while the Senior Vice Presidents each received 125,000 shares. These RSUs are set to vest in four equal annual installments starting March 1, 2026.
The SEC filing on Thursday, February 20, 2025, signifies Vanda Pharmaceuticals’ commitment to aligning its executive compensation with the company’s performance and industry standards. While the company reported losses in the last twelve months, InvestingPro analysts project a return to profitability in 2025. The disclosure of this information ensures transparency for investors and stakeholders regarding the company’s compensatory practices. For deeper insights into VNDA’s financial health and growth prospects, including 6 additional ProTips and comprehensive analysis, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Vanda Pharmaceuticals reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of -$0.08, compared to the forecasted -$0.17. The company also reported a revenue of $53.2 million, surpassing the forecast of $51.23 million. Additionally, Vanda Pharmaceuticals provided revenue guidance for 2025, projecting sales to be in the range of $210 million to $250 million. This indicates an approximate 16% year-over-year growth to the midpoint. Analysts at H.C. Wainwright raised their price target for Vanda stock to $20, maintaining a Buy rating, while Cantor Fitzgerald reiterated its Overweight rating and $13 price target. H.C. Wainwright anticipates that the first quarter of 2025 will likely yield the lowest revenue figures for the year due to a $15 million payment Vanda is required to make to its licensor for imsidolimab. Despite this, they expect revenues to increase sequentially throughout the year. Vanda Pharmaceuticals also aims for significant long-term growth, targeting $750 million in annual revenue from its psychiatry products by 2030.
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