Vanda Pharmaceuticals' Nereus Approved by FDA as First New Motion Sickness Drug in 40 Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: Benzinga
- FDA Approval: Vanda Pharmaceuticals' Nereus (tradipitant) receives FDA approval as the first new pharmacologic treatment for motion sickness in over 40 years, marking a significant breakthrough that could drive future sales growth.
- Clinical Trial Data: In three trials, including Motion Syros (n=365) and Motion Serifos (n=316), Nereus demonstrated significantly lower vomiting rates compared to placebo, at 18.3%-19.5% and 10.4%-18.3% respectively, indicating risk reductions of over 50%-70%, which enhances market confidence.
- Analyst Rating Upgrades: HC Wainwright raised its price target from $20 to $22, while B Riley Securities increased its target from $11 to $14, reflecting optimistic market expectations for Nereus that are likely to drive stock price increases.
- Pricing Strategy Challenges: While Cantor Fitzgerald anticipates Nereus will be priced at a premium compared to existing OTC products, pricing will be a key hurdle, with Vanda planning to offer an eight-tablet bottle priced above $500, which may affect market acceptance.
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Analyst Views on VNDA
Wall Street analysts forecast VNDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VNDA is 13.63 USD with a low forecast of 7.50 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 7.690
Low
7.50
Averages
13.63
High
22.00
Current: 7.690
Low
7.50
Averages
13.63
High
22.00
About VNDA
Vanda Pharmaceuticals Inc. is a global biopharmaceutical company focused on the development and commercialization of therapies to address unmet medical needs and improve the lives of patients. The Company’s commercial portfolio consist of three products: Fanapt for the acute treatment of manic or mixed episodes associated with bipolar I disorder and the treatment of schizophrenia, HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and for the treatment of nighttime sleep disturbances in Smith-Magenis syndrome (SMS) and PONVORY for the treatment of relapsing forms of multiple sclerosis (RMS), including clinically isolated syndrome, relapsing-remitting disease and active secondary progressive disease. In addition, it has a number of drugs and/or additional indications for current products in development, including Bysanti, Tradipitant, Imsidolimab, VTR-297, VQW-765, and others. Bysanti is the active metabolite of Fanapt.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vanda Pharmaceuticals Under Investigation for Securities Fraud Claims
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Vanda Pharmaceuticals Inc. has engaged in securities fraud or other unlawful business practices, advising investors to contact their attorneys for further information.
- FDA Application Rejection: On January 8, 2026, Vanda announced that its supplemental New Drug Application for HETLIOZ® was not approved by the FDA, which acknowledged positive clinical trial results but deemed the evidence insufficient for treating jet lag disorder.
- Significant Stock Drop: Following the FDA's rejection, Vanda's stock price fell by $1.20, or 14.05%, closing at $7.34 per share, indicating market concerns regarding the company's future prospects.
- Potential Legal Consequences: The investigation could lead to class action lawsuits against Vanda, and if misconduct is proven, it may have significant repercussions on the company's reputation and financial health.
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