Vanda PharmaceuticalsVNDA +2.74%75 Gross Margin % is 93.89% as of Mar. 2026, which is 4% above its 10-year median of 90.46. GuruFocus rates VNDA with a GF Score™ of 75/100 and a GF Value™ of $5.48 (Fairly Valued). The stock has 4 warning signs investors should review. Among 737 Biotechnology companies, Vanda Pharmaceuticals ranks better than 91.72% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Vanda Pharmaceuticals had a gross margin of 93.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Vanda Pharmaceuticals Gross Margin % Related Terms
Vanda Pharmaceuticals Gross Margin % Historical Data
* Premium members only.
The historical data trend for Vanda Pharmaceuticals's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VNDA vs FBRX, ARTV, OABI: Gross Margin % Comparison
For the Biotechnology subindustry, Vanda Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vanda Pharmaceuticals Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Vanda Pharmaceuticals (VNDA) has a Gross Margin % of 93.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Vanda Pharmaceuticals and its competitors. This is near median its historical median of 90.46. Over the past decade, Vanda Pharmaceuticals' Gross Margin % has ranged from 83.08 to 94.31. According to the industry distribution chart, Vanda Pharmaceuticals ranks #61 out of 737 companies in the Biotechnology industry, placing it in the top 8.3%.
Is Vanda Pharmaceuticals' Gross Margin % too high?
Vanda Pharmaceuticals' current Gross Margin % of 93.89% is near median its 10-year median of 90.46. Over the past 10 years, this metric has ranged from a low of 83.08 to a high of 94.31. The Biotechnology industry median Gross Margin % is 60.92. Vanda Pharmaceuticals' value of 93.89% is 54.1% above this industry median. Based on the distribution chart, Vanda Pharmaceuticals ranks #61 out of 737 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Vanda Pharmaceuticals has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vanda Pharmaceuticals' Gross Margin % compare to FBRX and ARTV?
According to the Biotechnology industry distribution chart, Vanda Pharmaceuticals ranks #61 out of 737 companies for Gross Margin %. This places Vanda Pharmaceuticals in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.92. Vanda Pharmaceuticals' value of 93.89% is 54.1% above this benchmark. Historically, Vanda Pharmaceuticals' own Gross Margin % has ranged from 83.08 to 94.31 over the past decade. While the company's 10-year median is 90.46 vs. the industry median of 60.92, Vanda Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.92, based on 737 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vanda Pharmaceuticals's current Gross Margin % of 93.89% is 54.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Vanda Pharmaceuticals and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vanda Pharmaceuticals's current Gross Margin % is 93.89%, which is near median its own 10-year median of 90.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanda Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vanda Pharmaceuticals (VNDA) is currently considered Fairly Valued. The stock's GF Value™ is $5.48, compared to a current price of $6.00 — trading 9.5% above its estimated fair value. The current Gross Margin % is 93.89%, which is near median its 10-year median of 90.46 and 54.1% above the Biotechnology industry median of 60.92. Vanda Pharmaceuticals' overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Vanda Pharmaceuticals (VNDA), the current Gross Margin % is 93.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vanda Pharmaceuticals (VNDA) Overvalued in 2026?
Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be overvalued.
The current stock price of $6.00 is trading 9.5% above its estimated GF Value™ of $5.48.
GuruFocus considers Vanda Pharmaceuticals to be Fairly Valued.
Key valuation signals for VNDA:
Gross Margin %: 93.89% (near median its 10-year median of 90.46)
GF Value™: $5.48 vs. price of $6.00 (9.5% above fair value)
Industry Position: 54.1% above the Biotechnology median (#61 of 737)
No single metric tells the full story. See the VNDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include ASO Molecules, VQW-765, Tradipitant, and VTR-297. The maximum of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
75GF Score
Get the complete analysis for VNDA
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
VNDA has been successfully added to your 
