Vanda Pharmaceuticals (FRA:VM4) Moat Score: 5/10 (As of Jun. 24, 2026)


FRA:VM4 Vanda Pharmaceuticals Inc FRA:VM4
75 GF Score
Price €5.10
GF Value €4.70
Valuation Fairly Valued
! 4 Warning Signs
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What is Vanda Pharmaceuticals Moat Score?

Vanda Pharmaceuticals FRA:VM4 +4.94% 75 Moat Score is 5 as of Jun. 24, 2026. GuruFocus rates FRA:VM4 with a GF Score™ of 75/100 and a GF Value™ of €4.70 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,405 Biotechnology companies, Vanda Pharmaceuticals ranks better than 96.73% on this metric.

Vanda Pharmaceuticals has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Vanda Pharmaceuticals has Narrow Moat: Vanda Pharmaceuticals Inc benefits from valuable intellectual property and patents, providing a solid narrow moat. The company has some pricing power and regulatory barriers due to its pharmaceutical products, but lacks strong market leadership and network effects.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Vanda Pharmaceuticals might have Narrow Moat - Solid narrow moat.

Vanda Pharmaceuticals  (FRA:VM4) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Vanda Pharmaceuticals Moat Score Related Terms

FRA:VM4 vs FBRX, ARTV, OABI: Moat Score Comparison

For the Biotechnology subindustry, Vanda Pharmaceuticals's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's Moat Score distribution charts can be found below:

* The bar in red indicates where Vanda Pharmaceuticals's Moat Score falls into.


FRA:VM4
75GF Score
Vanda Pharmaceuticals Inc FRA:VM4
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Vanda Pharmaceuticals (FRA:VM4) has a Moat Score of 5 as of Jun. 24, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Vanda Pharmaceuticals ranks #46 out of 1405 companies in the Biotechnology industry, placing it in the top 3.3%.
Is Vanda Pharmaceuticals' Moat Score too high?
Vanda Pharmaceuticals' current Moat Score is 5. The Biotechnology industry median Moat Score is 2.00. Vanda Pharmaceuticals' value of 5 is 150% above this industry median. Based on the distribution chart, Vanda Pharmaceuticals ranks #46 out of 1405 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' Moat Score compare to FBRX and ARTV?
According to the Biotechnology industry distribution chart, Vanda Pharmaceuticals ranks #46 out of 1405 companies for Moat Score. This places Vanda Pharmaceuticals in the top 3% of its industry — outperforming the majority of peers. The industry median Moat Score is 2.00. Vanda Pharmaceuticals' value of 5 is 150% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Biotechnology company?
The median Moat Score among Biotechnology companies is 2.00, based on 1,405 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vanda Pharmaceuticals's current Moat Score of 5 is 150% 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Biotechnology industry, the median Moat Score is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vanda Pharmaceuticals's current Moat Score is 5. 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 (FRA:VM4) is currently considered Fairly Valued. The stock's GF Value™ is €4.70, compared to a current price of €5.10 — trading 8.5% above its estimated fair value. The current Moat Score is 5 and 150% above the Biotechnology industry median of 2.00. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Vanda Pharmaceuticals (FRA:VM4), the current Moat Score is 5 as of Jun. 24, 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 (FRA:VM4) Overvalued in 2026?

Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be overvalued. The current stock price of €5.10 is trading 8.5% above its estimated GF Value™ of €4.70. GuruFocus considers Vanda Pharmaceuticals to be Fairly Valued.

Key valuation signals for FRA:VM4:

  • Moat Score: 5
  • GF Value™: €4.70 vs. price of €5.10 (8.5% above fair value)
  • GF Score™: 75/100 with 4 warning signs
  • Industry Position: 150% above the Biotechnology median (#46 of 1405)

No single metric tells the full story. See the FRA:VM4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Vanda Pharmaceuticals Business Description

Other Exchanges VNDA:USA0LKB:UKVM4:Germany
Address 2200 Pennsylvania Avenue North West, Suite 300 E, Washington, DC, USA, 20037
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

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€5.10
Price
€4.70
GF Value