Vanda Pharmaceuticals (VNDA) 10-K 14 Feb 25 2024 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Feb. 07, 2025	Jun. 30, 2024
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-34186
Entity Registrant Name	VANDA PHARMACEUTICALS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	03-0491827
Entity Address, Address Line One	2200 Pennsylvania Avenue NW
Entity Address, Address Line Two	Suite 300 E
Entity Address, City or Town	Washington
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20037
City Area Code	202
Local Phone Number	734-3400
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Document Financial Statement Error Correction [Flag]	false
Entity Public Float			$ 319.5
Entity Common Stock, Shares Outstanding		58,316,044
Documents Incorporated by Reference	Specified portions of the registrant’s proxy statement with respect to the registrant’s 2025 Annual Meeting of Stockholders, which is to be filed pursuant to Regulation 14A within 120 days after the end of the registrant’s fiscal year ended December 31, 2024, are incorporated by reference into Part III of this Form 10-K.
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Entity Central Index Key	0001347178
Common Stock, par value $0.001 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	VNDA
Security Exchange Name	NASDAQ
Series A Junior Participating Preferred Stock Purchase Right, par value $0.001 per share
Document Information [Line Items]
Title of 12(b) Security	Series A Junior Participating Preferred Stock Purchase Right, par value $0.001 per share
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2024
Audit Information [Abstract]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Washington, District of Columbia

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 102,316	$ 135,821
Marketable securities	272,327	252,443
Accounts receivable, net	47,101	34,155
Inventory	1,726	1,357
Prepaid expenses and other current assets	15,420	9,170
Total current assets	438,890	432,946
Property and equipment, net	2,132	2,037
Operating lease right-of-use assets	5,602	7,103
Finance lease right-of-use assets	4,943	0
Intangible assets, net	114,096	121,369
Deferred tax assets	81,440	75,000
Non-current inventory and other	9,101	9,985
Total assets	656,204	648,440
Current liabilities:
Accounts payable and accrued liabilities	39,086	38,460
Product revenue allowances	60,895	49,237
Total current liabilities	99,981	87,697
Operating lease non-current liabilities	4,944	7,006
Finance lease non-current liabilities	3,146	0
Other non-current liabilities	9,587	8,827
Total liabilities	117,658	103,530
Commitments and contingencies (Notes 11 and 18)
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, and no shares issued or outstanding at December 31, 2024 and 2023, respectively	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 58,310,644 and 57,534,499 shares issued and outstanding at December 31, 2024 and 2023, respectively	58	58
Additional paid-in capital	712,706	700,274
Accumulated other comprehensive income (loss)	74	(30)
Accumulated deficit	(174,292)	(155,392)
Total stockholders’ equity	538,546	544,910
Total liabilities and stockholders’ equity	$ 656,204	$ 648,440

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2024	Dec. 31, 2023
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	58,310,644	57,534,499
Common stock, shares outstanding (in shares)	58,310,644	57,534,499

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenues:
Net product sales	$ 198,772	$ 192,640	$ 254,382
Total revenues	198,772	192,640	254,382
Operating expenses:
Cost of goods sold excluding amortization	11,314	14,796	24,282
Research and development	74,431	76,823	85,770
Selling, general and administrative	146,414	112,883	136,485
Intangible asset amortization	7,273	2,090	1,516
Total operating expenses	239,432	206,592	248,053
Income (loss) from operations	(40,660)	(13,952)	6,329
Other income, net	17,739	20,291	4,971
Income (loss) before income taxes	(22,921)	6,339	11,300
Provision (benefit) for income taxes	(4,021)	3,830	5,025
Net income (loss)	$ (18,900)	$ 2,509	$ 6,275
Net income (loss) per share:
Basic (in dollars per share)	$ (0.33)	$ 0.04	$ 0.11
Diluted (in dollars per share)	$ (0.33)	$ 0.04	$ 0.11
Weighted average shares outstanding:
Basic (in shares)	58,149,087	57,380,975	56,461,877
Diluted (in shares)	58,149,087	57,557,911	56,983,171

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (18,900)	$ 2,509	$ 6,275
Other comprehensive income (loss):
Net foreign currency translation gain (loss)	(34)	28	(39)
Change in net unrealized gain (loss) on marketable securities	178	1,461	(1,271)
Tax benefit (provision) on other comprehensive income (loss)	(40)	(326)	292
Other comprehensive income (loss), net of tax	104	1,163	(1,018)
Comprehensive income (loss)	$ (18,796)	$ 3,672	$ 5,257

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		55,900,855
Beginning balance at Dec. 31, 2021	$ 504,928	$ 56	$ 669,223	$ (175)	$ (164,176)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		882,909
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	734	$ 1	733
Stock-based compensation expense	16,279		16,279
Net income (loss)	6,275				6,275
Other comprehensive income (loss) net of tax	(1,018)			(1,018)
Ending balance (in shares) at Dec. 31, 2022		56,783,764
Ending balance at Dec. 31, 2022	527,198	$ 57	686,235	(1,193)	(157,901)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		750,735
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	0	$ 1	(1)
Stock-based compensation expense	14,040		14,040
Net income (loss)	2,509				2,509
Other comprehensive income (loss) net of tax	$ 1,163			1,163
Ending balance (in shares) at Dec. 31, 2023	57,534,499	57,534,499
Ending balance at Dec. 31, 2023	$ 544,910	$ 58	700,274	(30)	(155,392)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		776,145
Stock-based compensation expense	12,432		12,432
Net income (loss)	(18,900)				(18,900)
Other comprehensive income (loss) net of tax	$ 104			104
Ending balance (in shares) at Dec. 31, 2024	58,310,644	58,310,644
Ending balance at Dec. 31, 2024	$ 538,546	$ 58	$ 712,706	$ 74	$ (174,292)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities
Net income (loss)	$ (18,900,000)	$ 2,509,000	$ 6,275,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property and equipment	859,000	920,000	1,217,000
Stock-based compensation	12,432,000	14,040,000	16,279,000
Amortization of premiums and accretion of discounts on marketable securities	(6,994,000)	(8,799,000)	(2,963,000)
Loss (gain) on sales of marketable securities	0	655,000	0
Intangible asset amortization	7,273,000	2,090,000	1,516,000
Deferred income taxes	(6,482,000)	(1,286,000)	1,130,000
Other non-cash adjustments, net	2,613,000	3,419,000	2,456,000
Changes in operating assets and liabilities:
Accounts receivable	(13,012,000)	(707,000)	(1,089,000)
Prepaid expenses and other assets	(6,816,000)	8,523,000	(6,136,000)
Inventory	(29,000)	(771,000)	(4,479,000)
Accounts payable and other liabilities	1,708,000	(10,984,000)	11,793,000
Product revenue allowances	11,591,000	3,192,000	5,985,000
Net cash provided by (used in) operating activities	(15,757,000)	12,801,000	31,984,000
Cash flows from investing activities
Asset acquisition	(4,229,000)	(100,665,000)	0
Purchases of property and equipment	(490,000)	(383,000)	(679,000)
Purchases of marketable securities	(364,773,000)	(512,606,000)	(349,258,000)
Sales and maturities of marketable securities	352,062,000	601,598,000	399,862,000
Net cash provided by (used in) investing activities	(17,430,000)	(12,056,000)	49,925,000
Cash flows from financing activities
Principal payments on finance leases	(155,000)	0	0
Proceeds from exercise of stock options	0	0	734,000
Net cash provided by (used in) financing activities	(155,000)	0	734,000
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(163,000)	47,000	265,000
Net change in cash, cash equivalents and restricted cash	(33,505,000)	792,000	82,908,000
Cash, cash equivalents and restricted cash
Beginning of year	136,290,000	135,498,000	52,590,000
End of year	$ 102,785,000	$ 136,290,000	$ 135,498,000

Business Organization and Prese

Business Organization and Presentation	12 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Presentation	Business Organization and Presentation Business Organization Vanda Pharmaceuticals Inc. (the Company or Vanda) is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003. The Company’s commercial portfolio is currently comprised 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. HETLIOZ ® is the first product approved by the United States Food and Drug Administration (FDA) for patients with Non-24 and for patients with SMS. In addition, the Company has a number of drugs and/or additional indications for current products in development, including: • Fanapt ® (iloperidone) long acting injectable (LAI) formulation for the treatment of schizophrenia; • Bysanti TM (milsaperidone), the active metabolite of Fanapt ® (iloperidone), for the acute treatment of manic or mixed episodes associated with bipolar I disorder and for the treatment of schizophrenia and major depressive disorder (MDD); • HETLIOZ ® (tasimelteon) for the treatment of jet lag disorder, insomnia, pediatric insomnia, delayed sleep phase disorder (DSPD) and pediatric Non-24; • PONVORY ® (ponesimod) for the treatment of psoriasis and ulcerative colitis; • Tradipitant (VLY-686), a small molecule neurokinin-1 (NK-1) receptor antagonist, for the treatment of gastroparesis, motion sickness and atopic dermatitis; • Imsidolimab, an IL-36R antagonist, for the treatment of generalized pustular psoriasis (GPP); • VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of onychomycosis and hematologic malignancies and with potential use as a treatment for several oncology indications; • Portfolio of Cystic Fibrosis Transmembrane Conductance Regulator (CFTR) activators and inhibitors, including VSJ-110 for the treatment of dry eye and ocular inflammation and VPO-227 for the treatment of secretory diarrhea disorders, including cholera; • VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist, for the treatment of social/performance anxiety and psychiatric disorders; and • Antisense oligonucleotide (ASO) molecules, including VCA-894A for the treatment of Charcot-Marie-Tooth Disease, Type 2S (CMT2S), caused by cryptic slice site variants within the IGHMBP2 gene and VGT-1849A for the treatment of polycythemia vera (PV), a form of a rare hematologic malignancy. Basis of Presentation The accompanying consolidated financial statements include the accounts of Vanda Pharmaceuticals Inc. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. Management continually re- evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates under different assumptions or conditions. Cash, Cash Equivalents and Restricted Cash For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Cash and cash equivalents include investments in money market funds with commercial banks and financial institutions, and commercial paper of high-quality corporate issuers. Restricted cash relates primarily to amounts held as collateral for letters of credit for office space leases at the Company’s Washington, D.C. headquarters. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total end of period cash, cash equivalents and restricted cash reported within the Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023: December 31, (in thousands) 2024 2023 Cash and cash equivalents $ 102,316 $ 135,821 Restricted cash included in non-current inventory and other 469 469 Total cash, cash equivalents and restricted cash $ 102,785 $ 136,290 Marketable Securities The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income (loss). At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. The Company also reviews its available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is the result of a change in creditworthiness or other factors. If declines in the value of available for-sale securities are determined to be credit-related, a loss is recorded in earnings in the current period. Interest and dividend income is recorded when earned and included in other income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to earliest call date and maturity, respectively, and included in other income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the Consolidated Statements of Operations when generated. All available-for-sale marketable securities are available for use in current operations and are classified as current. Inventory Inventory, which is recorded at the lower of cost or net realizable value, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company evaluates the risk of excess inventory and product expiry by evaluating current and future product demand relative to product shelf life, taking into account all possible alternative uses for the inventory available in the ordinary course of business. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance, patient usage and generic competition. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next 12 months. The Company classifies the estimate of such inventory as non-current. Asset Acquisitions The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If determined to be an asset acquisition, the Company accounts for the transaction under Accounting Standards Codification (ASC) 805-50, which requires the recognition of assets acquired and liabilities assumed on a relative fair value basis based on the acquisition cost, which includes transaction costs in addition to consideration given. Any excess consideration transferred over the fair value of the net assets acquired is allocated to the identifiable assets based on relative fair values. See Note 3, PONVORY ® Acquisition , for further discussion of the Company’s acquisition of the United States (U.S.) and Canadian rights to PONVORY ® from Actelion Pharmaceuticals Ltd. (Janssen), a Johnson & Johnson Company, which the Company accounted for as an asset acquisition under ASC 805-50. Intangible Assets Costs incurred for products not yet approved by the FDA and for which no alternative future use exists are recorded as research and development expense. Obligations for milestone payments to other pharmaceutical companies that may result in a capitalized intangible asset are recognized when it is deemed probable that the milestone event will occur. In the event a product has been approved by the FDA or an alternative future use exists for a product, patent and license costs are capitalized and amortized on a straight-line basis over the estimated useful economic life of the related product patents. For intangible assets related to HETLIOZ ® , the estimated useful life is through 2035, which is the estimated economic useful life of the related product patents. Useful lives for acquired intangible assets accounted for under ASC 805 are generally estimated based on the market participant methodology. For intangible assets related to PONVORY ® , the estimated useful life is through 2042, which is the estimated economic useful life of the related acquired product patents. Intangible assets related to Fanapt ® have been fully amortized on a straight-line basis to 2016. The Fanapt ® transaction represented reacquired rights, and therefore did not reflect the impact of additional Fanapt ® patents solely owned by the Company with varying expiration dates, the latest of which is December 2031. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of most property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized using a straight-line basis over the lesser of the estimated useful lives of the assets or the terms of the related leases. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statement of Operations for that period. Leases The Company determines if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from that lease. For leases with a term greater than 12 months, ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term includes the option to extend the lease when it is reasonably certain the Company will exercise that option. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. When the implicit rate is not available, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including publicly available data for instruments with similar characteristics, to determine the present value of lease payments. The Company does not combine lease and non-lease elements for office or vehicle leases. Impairment of Long-Lived Assets The Company evaluates if events and circumstances have occurred that indicate the remaining estimated useful life of its long-lived assets may warrant revision or that the remaining balance of these assets may not be recoverable. In evaluating for recoverability, the Company estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. In the event that the balance of any asset exceeds the future undiscounted or discounted cash flow estimate, impairment is recognized based on the excess of the carrying amounts of the asset above its estimated fair value. No impairment was recognized for the years ended December 31, 2024, 2023 and 2022. Accounts Payable and Accrued Liabilities The Company’s management is required to estimate accrued liabilities as part of the process of preparing financial statements. The estimation of accrued liabilities involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued liabilities include research and development expenses, such as accrued costs under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, consulting and professional fees, such as lawyers and fees for marketing and other commercialization activities, accrued compensation and employee benefits, such as accrued bonus, royalties payable under licensing agreements, and other accrued fees. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Revenue from Net Product Sales The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company recognizes revenue when control of the product is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those product sales, which is typically once the product physically arrives at the customer. Sales taxes, value-added taxes, and usage-based taxes are excluded from revenues. The Company’s net product sales consist of sales of Fanapt ® , HETLIOZ ® and PONVORY ® . Net sales by product for the years ended December 31, 2024, 2023 and 2022 were as follows: Year Ended December 31, ( in thousands ) 2024 2023 2022 Fanapt ® net product sales $ 94,297 $ 90,873 $ 94,727 HETLIOZ ® net product sales 76,675 100,167 159,655 PONVORY ® net product sales 27,800 1,600 — Total net product sales $ 198,772 $ 192,640 $ 254,382 The Company’s HETLIOZ ® net product sales as reported for the three months ended March 31, 2023 reflected higher unit sales as compared to recent prior periods. The higher unit sales during the three months ended March 31, 2023 resulted in a significant increase of inventory stocking at specialty pharmacy customers at March 31, 2023. During the remainder of 2023, although there was continued destocking at specialty pharmacy customers, inventory levels remained elevated relative to inventory levels prior to the entrance of generic competition and remained elevated throughout 2024. Going forward, HETLIOZ ® net product sales may reflect lower unit sales as a result of reduction of the elevated inventory levels at specialty pharmacy customers or may be variable depending upon when specialty pharmacy customers need to purchase again. Further, HETLIOZ ® net product sales will likely decline in future periods, potentially significantly, related to continued generic competition in the U.S. The Company constrained HETLIOZ ® net product sales for the years ended December 31, 2024 and 2023 to an amount not probable of significant revenue reversal. The amount of revenue recognized during the year ended December 31, 2024 related to changes in estimates on revenue constrained during 2023 was $1.3 million. HETLIOZ ® net product sales could experience variability in future periods as the remaining uncertainties associated with variable consideration related to inventory stocking by specialty pharmacy customers are resolved. The Company's PONVORY ® net product sales for the year ended December 31, 2024 include approximately $3.0 million of variable consideration that may be subject to dispute but that the Company believes is not probable of significant revenue reversal. Fanapt ® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. HETLIOZ ® is available in the U.S. for distribution through a limited number of specialty pharmacies and is not available in retail pharmacies. PONVORY ® is available in the U.S. for distribution primarily through a limited number of specialty distributors and specialty pharmacies. The Company invoices and records revenue when its customers, wholesalers, specialty pharmacies and specialty distributors, receive product from the third-party logistics warehouse, which is the point at which control is transferred to the customer. Revenues and accounts receivable are concentrated with these customers. Outside the U.S., the Company has a distribution agreement for the commercialization of Fanapt ® in Israel and sells HETLIOZ ® in Germany. Receivables are carried at transaction price, net of allowance for credit losses. Allowance for credit losses is measured using historical loss rates based on the aging of receivables and incorporating current conditions and forward-looking estimates. The following table presents each major customer that represented more than 10% of total revenues for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, Percent of Net Product Sales 2024 2023 2022 Customer A 21 % 15 % * Customer B 17 % 14 % 11 % Customer C 16 % 15 % 11 % Customer D 15 % 16 % 13 % Customer E * 20 % 36 % Customer F * * 16 % Total net product sales from major customers 69 % 80 % 87 % *Represents less than 10% of respective balance. The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2024 and 2023: December 31, Percent of Accounts Receivable, Net 2024 2023 Customer A 21 % 34 % Customer B 27 % 16 % Customer C 18 % 21 % Customer D * 19 % Customer E 18 % * Customer F * * Total accounts receivable, net from major customers 84 % 90 % *Represents less than 10% of respective balance. The transaction price is determined based upon the consideration to which the Company will be entitled in exchange for transferring product to the customer. The Company’s product sales are recorded net of applicable product revenue allowances for which reserves are established and include discounts, rebates, chargebacks, service fees, co-pay assistance and product returns that are applicable for various government and commercial payors. Where appropriate, the Company’s estimates of variable consideration included in the transaction price consider a range of possible outcomes. Allowances for rebates, chargebacks and co-pay assistance are based upon the insurance benefits of the end customer, which are estimated using historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Variable consideration may be constrained and is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. If actual results in the future vary from the Company’s estimates, it adjusts its estimates in the period identified, which would affect net product sales in the period such variances become known. During the year ended December 31, 2024, the Company constrained the variable consideration for HETLIOZ ® net product sales. The constrained revenue relates to the uncertainties of payor utilization, patient demand and chargeback and rebate amounts, including Medicaid, related to the elevated levels of inventory on hand at the specialty pharmacies. Reserves for variable consideration are classified as product revenue allowances on the Consolidated Balance Sheets, with the exception of prompt-pay discounts which are classified as reductions of accounts receivable. The reserve for product returns for which the product may not be returned for a period of greater than one year from the balance sheet date is included as a component of other non-current liabilities in the Consolidated Balance Sheets. Uncertainties related to variable consideration are generally resolved in the quarter subsequent to period end, with the exception of Medicaid rebates, which are dependent upon the timing of when states submit reimbursement claims, Medicare inflationary rebates, which are expected to be billed on an annual basis beginning in 2025, and product returns that are resolved during the product expiry period specified in the customer contract. Due to increased inventory stocking at specialty pharmacy customers of HETLIOZ ® in 2024 and 2023, the time it takes to resolve these uncertainties could be longer than the Company has historically experienced. The Company currently records sales allowances for the following: • Prompt-pay: Wholesalers, specialty pharmacies and specialty distributors, the Company’s direct customers, are generally offered discounts for prompt payment. The Company expects that these direct customers will earn prompt payment discounts and, therefore, deducts the full amount of these discounts from total product sales when revenues are recognized. • Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program as well as contracted rebate programs with other payors, including the Medicare Part D inflationary rebate effective October 1, 2022. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid and Medicare. The allowances for rebates are based on statutory or contracted discount rates and estimated patient utilization. • Chargebacks: Chargebacks are discounts that occur when contracted indirect customers purchase directly from wholesalers, specialty pharmacies and specialty distributors. Contracted indirect customers, which currently consist primarily of Public Health Service institutions and federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The wholesaler, specialty pharmacy or specialty distributor, in turn, charges back the difference between the price initially paid by the wholesaler, specialty pharmacy or specialty distributor and the discounted price paid to the wholesaler, specialty pharmacy or specialty distributor by the contracted customer. • Medicare Part D Rebates: The Medicare Part D prescription drug benefit requires manufacturers to fund approximately 70% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients for applicable drugs. The Company accounts for the Medicare Part D coverage gap using a point of sale model. Estimates for expected Medicare Part D rebates are based, in part, on historical activity and, where available, actual and pending prescriptions when the Company has validated the insurance benefits. Beginning January 1, 2025, the Medicare Part D coverage gap discount program was replaced with a new discounting program under the Inflation Reduction Act of 2022. The Medicare Part D benefit redesign is expected to result in higher discounts for our Medicare payor segment relative to the current Medicare Part D prescription drug coverage gap discount program. Under the redesigned Medicare Part D program, applicable drugs dispensed to applicable beneficiaries will be subject to manufacturer discounts of 10% during the initial coverage phase and 20% during the catastrophic coverage phase. Manufacturers may be eligible for phase-in of discounts, such as for applicable beneficiaries who are Low Income Subsidy (LIS) eligible under section 1860D-14(a) of the Social Security Act. The Company is a specified manufacturer whose applicable drugs for applicable beneficiaries who are LIS eligible will be subject to lower applicable discounts during the phase-in period. • Service Fees: The Company receives sales order management, data and distribution services from certain customers, for which it is assessed fees. These fees are based on contracted terms and are known amounts. The Company accrues service fees at the time of revenue recognition, resulting in a reduction of product sales and the recognition of an accrued liability, unless it is a payment for a distinct good or service from the customer in which case the fair value of those distinct goods or services are recorded as selling, general and administrative expense. • Co-pay Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-pay assistance. Co-pay assistance utilization is based on information provided by the Company’s third-party administrator. • Product Returns : The Company generally offers direct customers a limited right to return, as contractually defined with its customers. The Company considers several factors in the estimation process, including expiration dates of product shipped to customers, inventory levels within the distribution channel, product shelf life, historical return activity, including activity for product sold for which the return period has past, prescription trends and other relevant factors. The Company does not expect returned products to be resalable. There was no right of return asset as of December 31, 2024 or 2023. The following table summarizes activity for product returns as of and for the years ended December 31, 2024, 2023 and 2022, all of which relates to sales of Fanapt ® : (in thousands) Reserve for Product Returns Balances at December 31, 2021 $ 4,551 Additions 4,332 Credits/payments (3,739) Balances at December 31, 2022 5,144 Additions 3,001 Credits/payments (2,934) Balances at December 31, 2023 5,211 Additions 2,780 Credits/payments (3,060) Balances at December 31, 2024 $ 4,931 Cost of Goods Sold Cost of goods sold includes royalties payable, the cost of inventory sold, costs to write down inventory to net realizable value, manufacturing and supply chain costs and product shipping and handling costs related to sales of HETLIOZ ® and Fanapt ® to the Company’s distribution partners. Research and Development Expenses Research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services for clinical trial use, milestone payments made under licensing agreements prior to regulatory approval, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee-related costs and stock-based compensation for research and development personnel. The Company expenses research and development costs as they are incurred for products in the development stage, including manufacturing costs and milestone payments made under license agreements prior to FDA approval. Upon and subsequent to FDA approval, manufacturing and milestone payments made under license agreements are capitalized. Milestone payments are accrued when it is deemed probable that the milestone event will be achieved. Costs related to the acquisition of intellectual property are expensed as incurred if the underlying technology is developed in connection with the Company’s research and development efforts and has no alternative future use. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of salaries, other employee-related costs and stock-based compensation, and facilities and third-party expenses. Selling, general and administrative expenses are associated with the activities of the corporate, finance, accounting, information technology, business development, commercial support, trade and distribution, sales, marketing, legal, medical affairs and human resource functions. Additionally, selling, general and administrative expenses include an estimate for the annual Affordable Care Act fee. Stock-Based Compensation Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company recognizes the expense over the award’s vesting period. The fair value of stock options granted and restricted stock units (RSUs) awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Advertising Expense The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $1.9 million, $0.5 million and $2.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s international subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies, including intercompany balances for which settlement is anticipated in the foreseeable future, are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income (loss). Transactions denominated in currencies other than functional currency are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the Consolidated Balance Sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses are included in other income and were not material for the years ended December 31, 2024, 2023 and 2022, respectively. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss (NOL) carryforwards and tax credits that can be utilized in the future to offset taxable income. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. Interest and penalties related to income taxes are recognized as a component of income tax expense in the Consolidated Statements of Operations, and cumulative accrued interest and penalties are recognized within the related liability line items in the Consolidated Balance Sheets. Certain Risks and Uncertainties The Company’s products under development require approval from the FDA or other international regulatory agencies prior to commercial sales. There can be no assurance the products will receive the necessary clearance. If the Company is denied clearance or clearance is delayed, it may have a material adverse impact on the Company. The Company’s products are concentrated in rapidly changing, highly competitive markets, which are characterized by rapid technological advances, increasing generic competition, changes in customer requirements and evolving regulatory requirements and industry standards. Any failure by the Company to anticipate or to respond adequately to technological developments in its industry, challenges from new generic market entrants, changes in customer or regulatory requirements or changes in industry standards, or any significant delays in the development or introduction of products or services could have a material adverse effect on the Company’s business, operating results and future cash flows. The Company depends on single source suppliers for critical raw materials for manufacturing, as well as other components required for the administration of its products. The loss of these suppliers could delay the clinical trials or prevent or delay commercialization of the products. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash, cash equivalents and marketable securities. The Company places its cash, cash equivalents and marketable securities with highly rated financial institutions. At December 31, 2024, the Company maintained all of its cash, cash equivalents and marketable securities in two financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and the Company believes there is minimal risk of losses on such balances. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to provide enhanced segment disclosur

PONVORY_ Acquisition

PONVORY® Acquisition	12 Months Ended
	Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
PONVORY® Acquisition	PONVORY ® Acquisition On December 7, 2023, the Company entered into an Asset Purchase Agreement (the Purchase Agreement) to acquire the U.S. and Canadian rights to PONVORY ® from Actelion Pharmaceuticals Ltd. (Janssen), a Johnson & Johnson Company, and the closing of the transaction took place simultaneously with signing. PONVORY ® is a once-daily oral selective sphingosine-1-phosphate receptor 1 modulator, indicated to treat adults with relapsing forms of multiple sclerosis, including clinically isolated syndrome, relapsing-remitting disease and active secondary progressive disease. The total consideration for the acquisition was $104.9 million consisting of cash paid to Janssen and acquisition-related transaction costs. The Purchase Agreement includes customary representations, warranties and covenants, as well as standard mutual indemnities covering losses arising from any material breach of the Purchase Agreement or inaccuracy of representations and warranties. Janssen has agreed to indemnify the Company against losses arising from its activities prior to the closing, and the Company has agreed to indemnify Janssen against losses arising from the Company’s activities pertaining to PONVORY ® after the closing. Simultaneously and in connection with the Purchase Agreement, the parties also entered into certain supporting agreements, including a customary transition agreement, pursuant to which, during a transition period, Janssen will continue PONVORY ® operations. The Company announced in May 2024 that ownership of the U.S. New Drug Application (NDA) and Investigational New Drug applications for PONVORY ® had been transferred to Vanda from a Johnson & Johnson Company, fully allowing the Company to commercialize PONVORY ® in the U.S. The acquisition of PONVORY ® has been accounted for as an asset acquisition in accordance with ASC 805-50 because substantially all of the fair value of the assets acquired is concentrated in a single asset, the PONVORY ® product rights. The PONVORY ® products rights consist of certain patents and trademarks, regulatory approvals, marketing assets, and other records, and are considered a single asset as they are inextricably linked. The total consideration of $104.9 million was fully allocated to the acquired intangible asset for the U.S. and Canadian rights to PONVORY ® . The straight-line method is used to amortize the intangible asset, as disclosed in Note 9, Intangible Assets .

Marketable Securities

Marketable Securities	12 Months Ended
	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2024, which all have contractual maturities of less than two years: (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 227,720 $ 371 $ (261) $ 227,830 Corporate debt 44,506 9 (18) 44,497 Total marketable securities $ 272,226 $ 380 $ (279) $ 272,327 The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2023, which all have contractual maturities of less than two years: (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 185,168 $ 227 $ (280) $ 185,115 Corporate debt 67,352 2 (26) 67,328 Total marketable securities $ 252,520 $ 229 $ (306) $ 252,443

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — defined as observable inputs such as quoted prices in active markets • Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable • Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions The Company’s assets classified in Level 1 and Level 2 as of December 31, 2024 and 2023 consist of cash equivalents and available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of Level 2 instruments is also determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities include certificates of deposit, commercial paper and corporate notes that use as their basis readily observable market parameters. The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2024, as follows: Fair Value Measurement as of December 31, 2024 Using (in thousands) Total Fair Value Quoted Prices in Significant Other Significant U.S. Treasury and government agencies $ 227,830 $ 227,830 $ — $ — Corporate debt 44,497 — 44,497 — Total assets measured at fair value $ 272,327 $ 227,830 $ 44,497 $ — The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2023, as follows: Fair Value Measurement as of December 31, 2023 Using (in thousands) Total Fair Value Quoted Prices in Significant Other Significant U.S. Treasury and government agencies $ 209,103 $ 209,103 $ — $ — Corporate debt 107,108 — 107,108 — Total assets measured at fair value $ 316,211 $ 209,103 $ 107,108 $ — Total assets measured at fair value as of December 31, 2024 include no cash equivalents. Total assets measured at fair value as of December 31, 2023 include $63.8 million cash equivalents. The Company also has financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash, accounts receivable, restricted cash, accounts payable and accrued liabilities and product revenue allowances, the carrying values of which materially approximate their fair values.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2024
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consisted of the following as of December 31, 2024 and 2023: (in thousands) December 31, 2024 December 31, 2023 Current assets Work-in-process $ — $ 27 Finished goods 1,726 1,330 Total inventory, current $ 1,726 $ 1,357 Non-Current assets Raw materials $ 934 $ 934 Work-in-process 6,236 7,177 Finished goods 617 737 Total inventory, non-current 7,787 8,848 Total inventory $ 9,513 $ 10,205 The Company’s inventory balance consisted of $2.0 million of Fanapt ® product, $7.3 million of HETLIOZ ® product and $0.2 million of PONVORY ® product as of December 31, 2024. The Company’s inventory balance consisted of $3.0 million of Fanapt ® product and $7.2 million of HETLIOZ ® product as of December 31, 2023.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2024 and 2023: (in thousands) Estimated December 31, 2024 December 31, 2023 Computer and other equipment 3 $ 6,734 $ 6,284 Furniture and fixtures 5 - 7 1,497 1,496 Leasehold improvements 5 - 11 5,468 5,438 Total property and equipment, gross 13,699 13,218 Accumulated depreciation and amortization (11,567) (11,181) Total property and equipment, net $ 2,132 $ 2,037 Depreciation expense was $0.9 million, $0.9 million and $1.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Leases	Leases The Company’s long-term leases primarily include operating leases and subleases for office space in Washington, D.C. and London, England and vehicle finance leases for its fleet program. The Company recognized ROU assets and lease liabilities related to fixed payments for these long-term leases in its Consolidated Balance Sheets as of December 31, 2024 and 2023. The Company also has short-term leases, including office space in Berlin, Germany. In June 2011, the Company entered into an operating lease agreement under which it leases 33,534 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. Subject to the prior rights of other tenants, the Company has the right to renew the lease for five years following its expiration in July 2028. As of December 31, 2024, the renewal period has not been included in the lease term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The lease may be terminated early by the Company or the landlord under certain circumstances. In June 2016, the Company entered into a sublease agreement under which it subleases an additional 9,928 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. The sublease term began in January 2017 and ends in July 2026 but may be terminated earlier by either party under certain circumstances. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. In May 2016, the Company entered into an operating lease agreement under which it leases 2,880 square feet of office space in London, England. In November 2022, the Company extended the non-cancellable portion of the lease term from 2023 to 2026. In August 2024, the Company entered into a master lease agreement for vehicles to be utilized by the Company’s sales force. The individual car leases commence upon delivery of the vehicles, which began in the fourth quarter of 2024, and were determined to be finance leases upon lease commencement. The contractual period of each lease is three years. The following is a summary of the Company’s ROU assets and lease liabilities as of December 31, 2024 and 2023: (in thousands) Classification on the Balance Sheet December 31, 2024 December 31, 2023 Assets Operating lease assets Operating lease right-of-use assets $ 5,602 $ 7,103 Finance lease assets Finance lease right-of-use assets 4,943 — Total lease assets $ 10,545 $ 7,103 Liabilities Operating lease current liabilities Accounts payable and accrued liabilities $ 2,456 $ 2,398 Finance lease current liabilities Accounts payable and accrued liabilities 1,814 — Operating lease non-current liabilities Operating lease non-current liabilities 4,944 7,006 Finance lease non-current liabilities Finance lease non-current liabilities 3,146 — Total lease liabilities $ 12,360 $ 9,404 Weighted average remaining lease term, operating leases 3.3 4.3 Weighted average discount rate, operating leases 8.2 % 8.2 % Weighted average remaining lease term, finance leases 2.9 — Weighted average discount rate, finance leases 6.4 % — % The components of lease expense for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Operating lease cost: Fixed lease cost $ 2,223 $ 2,216 $ 2,226 Short-term lease cost 426 396 389 Finance lease cost: Amortization 171 — — Interest 32 — — Total lease costs $ 2,852 $ 2,612 $ 2,615 Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 2,723 $ 2,659 $ 2,581 Operating cash flows from finance leases 32 — — Financing cash flows from finance leases 155 — — Right-of-use assets obtained in exchange for lease obligations: Finance leases 5,114 — — The table below reconciles the Company’s future cash obligations to lease liabilities recorded on the balance sheet as of December 31, 2024: (in thousands) Operating Leases Finance Leases 2025 $ 2,792 $ 1,877 2026 2,409 1,877 2027 2,159 1,689 2028 1,099 — 2029 — — Thereafter — — Total minimum lease payments 8,459 5,443 Less: amount of lease payments representing interest (1,059) (483) Present value of future minimum lease payments 7,400 4,960 Less: current obligations under leases (2,456) (1,814) Lease non-current liabilities $ 4,944 $ 3,146
Leases	Leases The Company’s long-term leases primarily include operating leases and subleases for office space in Washington, D.C. and London, England and vehicle finance leases for its fleet program. The Company recognized ROU assets and lease liabilities related to fixed payments for these long-term leases in its Consolidated Balance Sheets as of December 31, 2024 and 2023. The Company also has short-term leases, including office space in Berlin, Germany. In June 2011, the Company entered into an operating lease agreement under which it leases 33,534 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. Subject to the prior rights of other tenants, the Company has the right to renew the lease for five years following its expiration in July 2028. As of December 31, 2024, the renewal period has not been included in the lease term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The lease may be terminated early by the Company or the landlord under certain circumstances. In June 2016, the Company entered into a sublease agreement under which it subleases an additional 9,928 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. The sublease term began in January 2017 and ends in July 2026 but may be terminated earlier by either party under certain circumstances. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. In May 2016, the Company entered into an operating lease agreement under which it leases 2,880 square feet of office space in London, England. In November 2022, the Company extended the non-cancellable portion of the lease term from 2023 to 2026. In August 2024, the Company entered into a master lease agreement for vehicles to be utilized by the Company’s sales force. The individual car leases commence upon delivery of the vehicles, which began in the fourth quarter of 2024, and were determined to be finance leases upon lease commencement. The contractual period of each lease is three years. The following is a summary of the Company’s ROU assets and lease liabilities as of December 31, 2024 and 2023: (in thousands) Classification on the Balance Sheet December 31, 2024 December 31, 2023 Assets Operating lease assets Operating lease right-of-use assets $ 5,602 $ 7,103 Finance lease assets Finance lease right-of-use assets 4,943 — Total lease assets $ 10,545 $ 7,103 Liabilities Operating lease current liabilities Accounts payable and accrued liabilities $ 2,456 $ 2,398 Finance lease current liabilities Accounts payable and accrued liabilities 1,814 — Operating lease non-current liabilities Operating lease non-current liabilities 4,944 7,006 Finance lease non-current liabilities Finance lease non-current liabilities 3,146 — Total lease liabilities $ 12,360 $ 9,404 Weighted average remaining lease term, operating leases 3.3 4.3 Weighted average discount rate, operating leases 8.2 % 8.2 % Weighted average remaining lease term, finance leases 2.9 — Weighted average discount rate, finance leases 6.4 % — % The components of lease expense for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Operating lease cost: Fixed lease cost $ 2,223 $ 2,216 $ 2,226 Short-term lease cost 426 396 389 Finance lease cost: Amortization 171 — — Interest 32 — — Total lease costs $ 2,852 $ 2,612 $ 2,615 Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 2,723 $ 2,659 $ 2,581 Operating cash flows from finance leases 32 — — Financing cash flows from finance leases 155 — — Right-of-use assets obtained in exchange for lease obligations: Finance leases 5,114 — — The table below reconciles the Company’s future cash obligations to lease liabilities recorded on the balance sheet as of December 31, 2024: (in thousands) Operating Leases Finance Leases 2025 $ 2,792 $ 1,877 2026 2,409 1,877 2027 2,159 1,689 2028 1,099 — 2029 — — Thereafter — — Total minimum lease payments 8,459 5,443 Less: amount of lease payments representing interest (1,059) (483) Present value of future minimum lease payments 7,400 4,960 Less: current obligations under leases (2,456) (1,814) Lease non-current liabilities $ 4,944 $ 3,146

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets HETLIOZ ® . In January 2014, the Company announced that the FDA had approved the NDA for HETLIOZ ® . As a result of this approval, the Company met a milestone under its license agreement with Bristol-Myers Squibb (BMS) that required the Company to make a license payment of $8.0 million to BMS. In April 2018, the Company met its final milestone under its license agreement with BMS when cumulative worldwide sales of HETLIOZ ® reached $250.0 million. As a result of the achievement of this milestone, the Company made a payment to BMS of $25.0 million in 2018. These milestone payments were determined to be additional consideration for the acquisition of HETLIOZ ® and capitalized as an intangible asset and are being amortized on a straight-line basis over the estimated economic useful life of the related product patents. PONVORY ® . On December 7, 2023, the Company acquired the U.S. and Canadian rights to PONVORY ® from Janssen. The total purchase price was allocated to the acquired intangible asset for the U.S. and Canadian rights to PONVORY ® . See Note 3, PONVORY ® Acquisition , for additional details. The PONVORY ® intangible asset is being amortized on a straight-line basis over the estimated economic useful life of the related product rights. During the first quarter of 2024, the estimated useful life for the PONVORY ® intangible asset was changed from 2035 to 2042 based on a change in the estimated economic useful life of the related product rights. The following is a summary of the Company’s amortizing intangible assets as of December 31, 2024: December 31, 2024 (in thousands) Estimated Gross Accumulated Net HETLIOZ ® 2035 $ 33,000 $ 17,400 $ 15,600 PONVORY ® 2042 104,894 6,398 98,496 Total amortizing intangible assets $ 137,894 $ 23,798 $ 114,096 The following is a summary of the Company’s amortizing intangible assets as of December 31, 2023: December 31, 2023 (in thousands) Estimated Gross Accumulated Net HETLIOZ ® 2035 $ 33,000 $ 15,937 $ 17,063 PONVORY ® 2035 104,894 588 104,306 Total amortizing intangible assets $ 137,894 $ 16,525 $ 121,369 As of December 31, 2024 and 2023, the Company also had $27.9 million of fully amortized intangible assets related to Fanapt ® . Intangible assets are amortized over their estimated useful economic life using the straight-line method. Amortization expense for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 HETLIOZ ® $ 1,463 $ 1,502 $ 1,516 PONVORY ® 5,810 588 — Total amortization expense $ 7,273 $ 2,090 $ 1,516 The following is a summary of the future intangible asset amortization schedule as of December 31, 2024: (in thousands) Total 2025 2026 2027 2028 2029 Thereafter HETLIOZ ® $ 15,600 $ 1,463 $ 1,463 $ 1,463 $ 1,463 $ 1,463 $ 8,285 PONVORY ® 98,496 5,544 5,544 5,544 5,544 5,544 70,776 Total amortization expense $ 114,096 $ 7,007 $ 7,007 $ 7,007 $ 7,007 $ 7,007 $ 79,061

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	12 Months Ended
	Dec. 31, 2024
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2024 and 2023: (in thousands) December 31, 2024 December 31, 2023 Research and development expenses $ 11,962 $ 15,691 Consulting and other professional fees 9,226 4,404 Compensation and employee benefits 8,465 6,413 Operating lease liabilities 2,456 2,398 Finance lease liabilities 1,814 — Royalties payable 1,665 2,409 Accounts payable and other accrued liabilities 3,498 7,145 Total accounts payable and accrued liabilities $ 39,086 $ 38,460

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Guarantees and Indemnifications The Company has entered into a number of standard intellectual property indemnification agreements in the ordinary course of its business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual from the date of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Since inception, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain conditions. License Agreements The Company’s rights to develop and commercialize its products are subject to the terms and conditions of licenses granted to the Company by other pharmaceutical companies. Fanapt ® . Pursuant to the terms of a settlement agreement with Novartis Pharma AG (Novartis), Novartis transferred all U.S. and Canadian rights in the Fanapt ® franchise to the Company on December 31, 2014. The Company paid directly to Sanofi S.A. (Sanofi) a fixed royalty of 3% of net sales through December 2019 related to manufacturing know-how. The Company is also obligated to pay Sanofi a fixed royalty on Fanapt ® net sales equal to 6% on Sanofi know-how not related to manufacturing under certain conditions for a period of up to 10 years in markets where the new chemical entity (NCE) patent has expired or was not issued. The Company is obligated to pay this 6% royalty on net sales in the U.S. through November 2026. HETLIOZ ® . In February 2004, the Company entered into a license agreement with BMS under which it received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize HETLIOZ ® . As of December 31, 2024, the Company has paid BMS $37.5 million in upfront fees and milestone obligations, including $33.0 million of regulatory approval and commercial milestones capitalized as intangible assets (see Note 9, Intangible Assets ). The Company has no remaining milestone obligations to BMS. Additionally, the Company is obligated to make royalty payments on HETLIOZ ® net sales to BMS. The royalty period in each territory where the Company commercializes HETLIOZ ® is 10 years following the first commercial sale in the territory. In territories outside the U.S., the royalty is 5% on net sales. In the U.S., the royalty on net sales decreased from 10% to 5% in December 2022. This U.S. royalty ended in April 2024. The Company is also obligated under the license agreement to pay BMS a percentage of any sublicense fees, upfront payments and milestone and other payments (excluding royalties) that it receives from a third party in connection with any sublicensing arrangement, at a rate which is in the mid-twenties. The Company is obligated to use its commercially reasonable efforts to develop and commercialize HETLIOZ ® . Tradipitant. In April 2012, the Company entered into a license agreement with Eli Lilly and Company (Lilly) pursuant to which the Company acquired an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize an NK-1 receptor antagonist, tradipitant, for all human indications. Lilly is eligible to receive future payments based upon achievement of specified development, regulatory approval and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits. As of December 31, 2024, the Company has paid Lilly $5.0 million in upfront fees and development milestones, including a $2.0 million milestone paid to Lilly during the year ended December 31, 2023 for the filing of the first application for marketing authorization for tradipitant in either the U.S. or European Union (E.U.). As of December 31, 2024, remaining milestone obligations include $10.0 million and $5.0 million milestones for the first approval of an application for marketing authorization for tradipitant in the U.S. and E.U., respectively, and up to $80.0 million for sales milestones. The Company is obligated to use its commercially reasonable efforts to develop and commercialize tradipitant. Imsidolimab. In January 2025, the Company entered into an exclusive global license agreement with Anaptys under which it acquired the worldwide rights to develop, manufacture, and commercialize imsidolimab, an IL-36R antagonist. Under the terms of the agreement, the Company made an upfront payment of $10 million to Anaptys and an additional $5 million for existing drug supply. Anaptys is eligible to receive up to $35 million in future regulatory approval and sales milestones. Additionally, the Company is obligated to pay Anaptys a 10% royalty on global net sales of imsidolimab. The Company is obligated to use its commercially reasonable efforts to develop and commercialize imsidolimab. Portfolio of CFTR activators and inhibitors . In March 2017, the Company entered into a license agreement with the University of California San Francisco (UCSF), under which the Company acquired an exclusive worldwide license to develop and commercialize a portfolio of CFTR activators and inhibitors. Pursuant to the license agreement, the Company will develop and commercialize the CFTR activators and inhibitors and is responsible for all development costs, including current pre-investigational new drug development work. UCSF is eligible to receive future payments based upon achievement of specified development and commercialization milestones as well as single-digit royalties on net sales. As of December 31, 2024, the Company has paid UCSF $1.6 million in upfront fees and development milestones. As of December 31, 2024, remaining milestone obligations include $11.9 million for development milestones and $33.0 million for future regulatory approval and sales milestones. Included in the $11.9 million of development milestones are $1.1 million of milestone obligations due upon the conclusion of clinical studies for each licensed product, not to exceed $3.2 million in total for the CFTR portfolio. VQW-765. In connection with a settlement agreement with Novartis relating to Fanapt ® , the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize VQW-765, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. Pursuant to the license agreement, the Company is obligated to use its commercially reasonable efforts to develop and commercialize VQW-765 and is responsible for all development costs. The Company has no milestone obligations, but Novartis is eligible to receive tiered-royalties on net sales at percentage rates up to the mid-teens. Other Agreements Olipass. In September 2022, the Company entered into an agreement with OliPass Corporation (OliPass) to jointly develop a set of ASO molecules based on OliPass’ proprietary modified peptide nucleic acids. As consideration for entering into the arrangement, the Company paid OliPass an upfront fee of $3.0 million, which was recorded as research and development expense in 2022. The Company is funding the research and development activities and has the option to license jointly developed intellectual property upon successful development. Shareholder Rights Plan. On April 17, 2024, the Company’s board of directors authorized and declared a dividend distribution of one right (each, a Right) for each outstanding share of common stock of the Company to stockholders of record as of the close of business on April 29, 2024 (the Record Date). Each Right entitles the registered holder to purchase from the Company, subject to certain conditions which have not yet occurred, one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share (the Preferred Stock), of the Company at an exercise price of $25.00 (the Exercise Price), subject to adjustment. The complete terms of the Rights are set forth in a Rights Agreement, dated as of April 17, 2024, between the Company and Equiniti Trust Company, LLC, as rights agent (the Rights Agent), as amended by that certain Amendment No. 1 to the Rights Agreement, and that certain Amendment No. 2 to the Rights Agreement, each, by and between the Company and the Rights Agent (as amended, the Rights Agreement). In general terms, subject to certain enumerated exceptions, the Rights Agreement works by imposing a significant penalty upon any person or group that acquires beneficial ownership of 10% or more of the shares of common stock without the prior approval of the board of directors. In general, any person will be deemed to beneficially own any securities (a) as to which such person has any agreement, arrangement or understanding with another person for the purpose of acquiring, holding, voting or disposing of any shares of Common Stock or (b) that are the subject of a derivative transaction or constitute a derivative security. As a result, the overall effect of the Rights Agreement and the issuance of the Rights may be to render more difficult or discourage a merger, tender or exchange offer or other business combination involving the Company that is not approved by the board of directors. However, neither the Rights Agreement nor the Rights should interfere with any merger, tender or exchange offer or other business combination approved by the board of directors. Purchase Commitments In the normal course of its business, the Company regularly enters into agreements with third-party vendors under fee service arrangements, which generally may be terminated on 90 days’ notice without incurring additional charges, other than charges for work completed or materials procured but not paid for through the effective date of termination and other costs incurred by the Company’s contractors in closing out work in progress as of the effective date of termination. The Company’s non-cancellable purchase commitments for agreements longer than one year primarily relate to commitments for data services. Various other long-term agreements entered into for services with other third-party vendors, such as inventory purchase commitments, are cancellable in nature or contain variable commitment terms within the agreement that are within our control.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows for the years ended December 31, 2024 and 2023: (in thousands) December 31, 2024 December 31, 2023 Foreign currency translation $ (13) $ 21 Unrealized gain (loss) on marketable securities 87 (51) Accumulated other comprehensive income (loss) $ 74 $ (30)

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation As of December 31, 2024, there were 7,253,587 shares subject to outstanding options and RSUs under the 2006 Equity Incentive Plan (2006 Plan) and the Amended and Restated 2016 Equity Incentive Plan (2016 Plan, and together with the 2006 Plan, Plans). The 2006 Plan expired by its terms in April 2016, and the Company adopted the 2016 Plan. Outstanding options under the 2006 Plan remain in effect and the terms of the 2006 Plan continue to apply, but no additional awards can be granted under the 2006 Plan. In June 2016, the Company’s stockholders approved the 2016 Plan. The 2016 Plan has been amended a number of times since to increase the number of shares reserved for issuance, among other administrative changes. Each of the amendments to the 2016 Plan was approved by the Company’s stockholders. There is a total of 15,690,000 shares of common stock authorized for issuance under the 2016 Plan, 4,725,935 shares of which remained available for future grant as of December 31, 2024. Stock Options The Company has granted option awards under the Plans with service conditions (service option awards) that are subject to terms and conditions established by the compensation committee of the board of directors. Service option awards have 10-year contractual terms. Service option awards granted to employees and new directors upon their election vest and become exercisable over four years, with the first 25% of the shares subject to service option awards vesting on the first anniversary of the grant date and the remaining 75% of the shares subject to the service option awards in 36 equal monthly installments thereafter. Subsequent annual service option awards granted to directors vest and become exercisable in full on the first anniversary of the grant date. Service option awards granted to executive officers and certain other employees provide for partial acceleration of vesting if the executive officer or employee is subject to an involuntary termination, and full acceleration of vesting if the executive officer or employee is subject to an involuntary termination within 24 months after a change in control of the Company. Service option awards granted to directors provide for accelerated vesting if there is a change in control of the Company or if the director’s service terminates as a result of the director’s death or total and permanent disability. As of December 31, 2024, $2.9 million of unrecognized compensation costs related to unvested service option awards are expected to be recognized over a weighted average period of 0.8 years. No option awards are classified as a liability as of December 31, 2024. A summary of option activity under the Plans for the year ended December 31, 2024 is as follows: (in thousands, except for share and per share amounts) Number of Weighted Average Weighted Average Aggregate Outstanding at December 31, 2023 4,792,506 $ 12.95 6.00 $ — Granted 190,514 5.41 Expired (379,439) 12.02 Outstanding at December 31, 2024 4,603,581 12.71 5.60 — Exercisable at December 31, 2024 3,778,833 13.73 5.05 — Vested and expected to vest at December 31, 2024 4,560,920 12.76 5.58 — The weighted average grant-date fair value of options granted was $2.95, $3.53 and $5.18 per share for the years ended December 31, 2024, 2023 and 2022, respectively. There were no options exercised for the year ended December 31, 2024 and 2023. The total intrinsic value of options exercised was $1.6 million for the year ended December 31, 2022. There were no proceeds from the exercise of stock options for the year ended December 31, 2024 and 2023. Proceeds from the exercise of stock options amounted to $0.7 million for the year ended December 31, 2022. Restricted Stock Units An RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s stock on the date of grant. The Company has granted RSUs under the Plans with service conditions (service RSUs) that are subject to terms and conditions established by the compensation committee of the board of directors. Service RSUs granted to employees and new directors upon their election vest in four equal annual installments. Subsequent annual service RSUs granted to directors vest on the first anniversary of the date of grant. Service RSUs granted to executive officers and certain other employees provide for accelerated vesting if the executive officer or employee is subject to an involuntary termination within 24 months after a change in control of the Company. Service RSUs granted to directors provide for accelerated vesting if there is a change in control of the Company. As of December 31, 2024, $11.4 million of unrecognized compensation costs related to unvested service RSUs are expected to be recognized over a weighted average period of 1.6 years. No RSUs are classified as a liability as of December 31, 2024. A summary of RSU activity for the Plans for the year ended December 31, 2024 is as follows: Number of Weighted Unvested at December 31, 2023 1,905,310 $ 10.87 Granted 1,652,903 4.48 Forfeited (132,062) 7.91 Vested (776,145) 11.54 Unvested at December 31, 2024 2,650,006 6.82 The weighted average grant-date fair value of RSUs granted was $4.48, $6.96 and $11.24 per share for the years ended December 31, 2024, 2023 and 2022, respectively. The total fair value of the RSUs that vested during the years ended December 31, 2024, 2023 and 2022 was $9.0 million, $11.3 million, and $11.6 million, respectively. Stock-Based Compensation Expense Stock-based compensation expense recognized for the years ended December 31, 2024, 2023 and 2022 was comprised of the following: Year Ended December 31, (in thousands) 2024 2023 2022 Research and development $ 2,960 $ 3,323 $ 3,964 Selling, general and administrative 9,472 10,717 12,315 Total stock-based compensation expense $ 12,432 $ 14,040 $ 16,279 The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model that uses the assumptions noted in the following table. Expected volatility rates are based on the historical volatility of the Company’s publicly traded common stock and other factors. The expected terms are determined based on a combination of historical exercise data and hypothetical exercise data for unexercised stock options. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has never paid cash dividends to its stockholders and does not plan to pay dividends in the foreseeable future. Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the years ended December 31, 2024, 2023 and 2022 were as follows: Year Ended December 31, 2024 2023 2022 Expected dividend yield — % — % — % Weighted average expected volatility 50 % 47 % 46 % Weighted average expected term (years) 6.27 6.16 6.05 Weighted average risk-free rate 4.52 % 3.89 % 2.03 %

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2024
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit Plan The Company has a defined contribution plan under IRC Section 401(k). This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Currently, the Company matches fifty percent up to the first six percent of employee contributions. All matching contributions have been paid by the Company. The Company match vests over a 4-year period and amounted to $1.0 million, $1.0 million and $1.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following is a summary of the domestic and foreign components of income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands) 2024 2023 2022 Domestic $ (23,042) $ 6,184 $ 11,216 Foreign 121 155 84 Total income (loss) before income taxes $ (22,921) $ 6,339 $ 11,300 The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands) 2024 2023 2022 Current Federal $ 1,654 $ 2,577 $ — State 749 2,447 3,710 Foreign 58 91 185 Deferred Federal (4,760) (2,240) 1,238 State (1,719) 970 (111) Foreign (3) (15) 3 Provision (benefit) for income taxes $ (4,021) $ 3,830 $ 5,025 The Company assesses the need for a valuation allowance against its deferred tax asset each quarter through the review of all available positive and negative evidence. Deferred tax assets are reduced by a tax valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The analysis is highly dependent upon historical and projected pretax income. As of December 31, 2024, after considering all available positive and negative evidence, including but not limited to cumulative income in recent periods, historical, current and future projected results and significant risks and uncertainties related to forecasts, the Company concluded, consistent with prior periods, that it is more likely than not that substantially all of its deferred tax assets in the U.S. are realizable in future periods. The Company maintains a valuation allowance against certain state net deferred tax assets. The Company generated a pretax loss for the year ended December 31, 2024. If the Company continues to generate pretax losses and/or if the Company’s projections indicate pretax losses in future periods, the conclusion about the appropriateness of the valuation allowance could change in a future period. An increase in the valuation allowance would result in a non-cash income tax expense during the period of change. The analysis to determine that a valuation allowance is necessary is highly dependent upon historical and future projected earnings, among other factors. Any such adjustment could have a material impact on the Company’s results of operations. The following is a reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, 2024 2023 2022 Federal tax at statutory rate 21.0 % 21.0 % 21.0 % State taxes 4.3 % 5.0 % 4.8 % Change in valuation allowance (1.5) % 22.6 % 1.0 % Research and development credit 12.8 % (69.3) % (25.9) % Orphan drug credit 1.0 % (4.5) % (0.9) % Section 162(m) limitation (4.5) % 17.2 % 9.4 % Other tax rate changes (0.5) % (23.4) % 1.7 % Other changes in state deferred taxes 1.0 % 12.7 % — % Uncertain tax positions (5.9) % 41.0 % 24.5 % Stock-based compensation (7.1) % 30.2 % 5.8 % Settlements (0.1) % 2.7 % 2.6 % Non-deductible items (2.6) % 5.5 % 0.3 % Other items (0.3) % (0.3) % 0.2 % Effective tax rate 17.6 % 60.4 % 44.5 % The following is a summary of the components of the Company’s net deferred tax assets and the related tax valuation allowance as of December 31, 2024 and 2023. (in thousands) December 31, 2024 December 31, 2023 Deferred tax assets Net operating loss carryforwards $ 5,962 $ 5,897 Stock-based compensation 3,606 4,187 Accrued expenses 2,113 1,453 Allowance for returns and credit losses 1,716 1,748 Research and development and orphan drug credit carryforwards 36,214 38,559 Capitalized research and development expenses 38,393 29,036 Other 4,537 5,037 Total deferred tax assets 92,541 85,917 Deferred tax liabilities Intangible assets (961) (812) Other (1,253) (1,558) Total deferred tax liabilities (2,214) (2,370) Deferred tax assets, net 90,327 83,547 Less: Valuation allowance 8,887 8,547 Net deferred tax assets $ 81,440 $ 75,000 The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2024, 2023 and 2022: (in thousands) Balance at Beginning of Year Additions Reductions Balance at End of Year Year Ended December 31, 2024 $ 8,547 $ 340 $ — $ 8,887 December 31, 2023 7,136 1,411 — 8,547 December 31, 2022 7,025 111 — 7,136 The Company has NOL and other tax credit carryforwards in several jurisdictions. As of December 31, 2024 and 2023, the Company had utilized all of its federal NOL carryforwards. As of December 31, 2024 the Company has deferred tax assets of $18.3 million and $17.9 million related to U.S. federal and state research and development credits and orphan drug credits, respectively. Both of these tax attributes will begin to expire in 2031. In addition, the Company has $6.0 million of deferred tax assets relating to other U.S. NOL carryforwards, which primarily relate to the District of Columbia. NOLs for the District of Columbia will begin to expire in 2032 and state NOLs will begin to expire in 2034. Cash paid for income taxes was $2.4 million and $3.6 million for the years ended December 31, 2024 and 2023. Cash paid for income taxes for the year ended December 31, 2022 was not material. Cash taxes beginning in 2023 include federal tax payments as a result of utilizing the Company’s remaining federal net operating loss carryover. For federal tax purposes, utilization of the Company’s tax credits is limited to 75 percent of federal income tax each year. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Unrecognized tax benefits at the beginning of the year $ 18,312 $ 15,485 $ 12,935 Increases (decreases) related to prior year tax positions (159) 919 (75) Increases related to current year tax positions 742 2,003 2,895 Settlements — — (270) Statute lapses $ (99) $ (95) $ — Unrecognized tax benefits at the end of the year $ 18,796 $ 18,312 $ 15,485 The amount of uncertain tax benefits that, if recognized, would impact the effective tax rate is $18.8 million. Unrecognized tax benefits are not expected to change materially over the next 12 months. Generally, the tax years 2021 through 2023 remain open to examination by the major taxing jurisdiction to which the Company is subject. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, or state or foreign tax authorities, to the extent utilized in a future period. Certain tax attributes of the Company, including NOLs and credit carryforwards, would be subject to limitation under Section 382 and 383 should an ownership change as defined under Section 382 of the Internal Revenue Code of 1986, as amended (IRC) occur. The limitation resulting from a change in ownership could affect the Company’s ability to utilize its NOLs and credit carryforwards (tax attributes) to offset future taxable income. An ownership change occurred in the year ended December 31, 2014. The Company believes that the ownership change in 2014 will not impact its ability to utilize NOL and credit carryforwards; however, future ownership changes may cause the Company’s existing tax attributes to have additional limitations.

Earnings per Share

Earnings per Share	12 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive, as calculated using the treasury stock method. The following table presents the calculation of basic and diluted net income (loss) per share of common stock for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands, except for share and per share amounts) 2024 2023 2022 Numerator: Net income (loss) $ (18,900) $ 2,509 $ 6,275 Denominator: Weighted average shares outstanding, basic 58,149,087 57,380,975 56,461,877 Effect of dilutive securities — 176,936 521,294 Weighted average shares outstanding, diluted 58,149,087 57,557,911 56,983,171 Net income (loss) per share, basic and diluted: Basic $ (0.33) $ 0.04 $ 0.11 Diluted $ (0.33) $ 0.04 $ 0.11 Antidilutive securities excluded from calculations of diluted net income (loss) per share 6,493,140 6,464,057 4,786,891 The Company incurred a net loss for the year ended December 31, 2024 causing inclusion of any potentially dilutive securities to have an anti-dilutive effect, resulting in dilutive loss per share and basic loss per share attributable to common stockholders being equivalent.

Segments

Segments	12 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
Segments	Segments The Company operates in one reportable segment, which includes all activities related to the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The determination of a single reportable segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (CODM), which is its chief executive officer, who reviews and evaluates consolidated net income (loss) for purposes of assessing performance, making operating decisions, allocating resources and planning and forecasting for future periods. The measure of segment assets is reported on the balance sheet as total assets. The following table presents the segment revenue and significant expense categories included within the product segment’s measure of profit or loss for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands) 2024 2023 2022 Revenue $ 198,772 $ 192,640 $ 254,382 Less: Cost of goods sold, excluding amortization 11,314 14,796 24,282 Research and development 74,431 76,823 85,770 Selling, general and administrative 146,414 112,883 136,485 Intangible asset amortization 7,273 2,090 1,516 Other income (17,739) (20,291) (4,971) Provision (benefit) for income taxes (4,021) 3,830 5,025 Net income (loss) $ (18,900) $ 2,509 $ 6,275 Foreign sales were not material for each of the years ended December 31, 2024, 2023 and 2022.

Legal Matters

Legal Matters	12 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal Matters HETLIOZ ® . Between April 2018 and March 2021, the Company filed numerous Hatch-Waxman lawsuits in the U.S. District Court for the District of Delaware (Delaware District Court) against Teva Pharmaceuticals USA, Inc. (Teva), MSN Pharmaceuticals Inc. and MSN Laboratories Private Limited (MSN) and Apotex Inc. and Apotex Corp. (Apotex, and collectively with Teva and MSN, the HETLIOZ ® Defendants) asserting that U.S. Patent Nos. RE46,604 (‘604 Patent), 9,060,995, 9,539,234, 9,549,913, 9,730,910 (‘910 Patent), 9,844,241, 10,071,977, 10,149,829 (‘829 Patent), 10,376,487 (‘487 Patent), 10,449,176, 10,610,510, 10,610,511, 10,829,465, and 10,611,744 will be infringed by the HETLIOZ ® Defendants’ generic versions of HETLIOZ ® for which they were seeking FDA approval. As initially disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 14, 2022, in January 2022, the Company entered into a license agreement with MSN and Impax Laboratories LLC (Impax) resolving the lawsuits against MSN (the MSN/Impax License Agreement). The MSN/Impax License Agreement grants MSN and Impax a non-exclusive license to manufacture and commercialize MSN’s generic version of HETLIOZ ® in the U.S. effective as of March 13, 2035, unless prior to that date the Company obtains pediatric exclusivity for HETLIOZ ® , in which case the license will be effective as of July 27, 2035. The MSN/Impax License Agreement also provides that MSN and Impax may launch a generic version of HETLIOZ ® earlier under certain limited circumstances. In January 2023, MSN and its commercial partner, Amneal Pharmaceuticals, Inc. (Amneal), informed the Company of their belief that such circumstances have occurred and have since launched their generic version. The Company disagreed with this position and sought to defend its legal rights to exclusivity for HETLIOZ ® . The consolidated lawsuits against the remaining HETLIOZ ® Defendants were tried in March 2022. In December 2022, the Delaware District Court ruled that Teva and Apotex did not infringe the ‘604 Patent, and that the asserted claims of the ‘604, ‘910, ‘829 and ‘487 Patents were invalid. In December 2022, the Company appealed the Delaware District Court’s decision to the U.S. Court of Appeals for the Federal Circuit (Federal Circuit) and an oral argument for the appeal was held in March 2023. In May 2023, a three-judge panel of the Federal Circuit affirmed the Delaware District Court’s ruling, and in June 2023, the Company requested a rehearing or rehearing en banc from the Federal Circuit. In August 2023, the Federal Circuit denied the Company’s petition for a rehearing. In January 2024, the Company filed a petition for a writ of certiorari with the U.S. Supreme Court to review the Federal Circuit’s decision. In April 2024, the U.S. Supreme Court denied the Company’s petition for a writ of certiorari. In December 2022, the Company filed patent infringement lawsuits, including Hatch-Waxman Act claims, against each of Teva and Apotex in the U.S. District Court for the District of New Jersey (NJ District Court) asserting that U.S. Patent No. 11,285,129, a method of administration patent that was not litigated in the Delaware District Court cases (‘129 Patent), will be infringed by Teva’s and Apotex’ generic versions of HETLIOZ ® , each of which was approved by the FDA. The Company asked the NJ District Court to, among other things, order that the effective date of the FDA’s approval of Teva’s and Apotex’ generic versions of HETLIOZ ® be a date that is no earlier than the expiration of the ‘129 Patent, or such later date that the NJ District Court may determine, and enjoin each of Teva and Apotex from the commercial manufacture, use, import, offer for sale and/or sale of their generic versions of HETLIOZ ® until the expiration of the ‘129 Patent, or such later date that the NJ District Court may determine. In February 2023, the case was transferred to the Delaware District Court. In April 2023, Teva and Apotex moved for judgment on the pleadings. In June 2024, the Delaware District Court denied those motions, allowing the Company’s lawsuit to proceed. The Company’s lawsuit remains pending. In January 2023, the Company filed a lawsuit in the NJ District Court against Teva challenging Teva’s advertising and marketing practices related to its at risk launch of its generic version of HETLIOZ ® for the single indication of Non-24. The Company believes that Teva’s advertising and marketing practices related to its generic version of HETLIOZ ® promote its product for uses beyond the limited labeling that Teva sought, and the FDA approved. The Company seeks to, among other things, enjoin Teva from engaging in false and misleading advertising and recover monetary damages. In December 2023, the case was transferred to the Delaware District Court following Teva’s motion to transfer and dismiss the case earlier that year. In February 2025, the Delaware District Court denied Teva’s motion to dismiss, allowing the Company’s lawsuit to proceed. The Company’s lawsuit remains pending. In January 2023, the Company filed a lawsuit in the U.S. District Court for the District of Columbia (DC District Court) against the FDA challenging the FDA’s approval of Teva’s Abbreviated New Drug Application (ANDA) for its generic version of HETLIOZ ® capsules under the Administrative Procedure Act (APA), the Food, Drug, and Cosmetic Act (FDCA) and FDA regulations. Under the FDCA, every ANDA must contain information to show that the labeling proposed for the generic drug is the same as the labeling approved for the listed drug. The labeling and packaging for HETLIOZ ® includes Braille, but Teva’s generic version does not. On this basis, the Company believes that Teva’s approved labeling does not comply with applicable requirements. The Company has asked the DC District Court to, among other things, vacate the FDA’s approval of Teva’s ANDA, declare that the approval of the ANDA was unlawful, arbitrary, and capricious and compel the FDA to order Teva to recall its generic HETLIOZ ® product. In February 2023, Teva intervened in the lawsuit as a defendant. In September 2023, the Company amended its lawsuit to request that the DC District Court set aside the FDA’s July 2023 denial of the Company’s citizen petition, originally filed with the FDA in January 2023. In April 2024, the Company filed a motion for summary judgment. In February 2025, the DC District Court denied the Company’s motion and granted the FDA and Teva’s cross motions for summary judgment. The Company is evaluating options with respect to this litigation. In September 2023, the Company filed a lawsuit in the DC District Court against the FDA challenging the FDA’s approval of MSN’s ANDA for its generic version of HETLIOZ ® capsules under the APA, the FDCA, FDA regulations and the Appointments Clause of the U.S. Constitution. The Company believes that MSN’s underlying approval data, particularly its bioequivalence studies, are faulty. On this basis, the Company asked the DC District Court to, among other things, vacate the FDA’s approval of MSN’s ANDA, declare that the approval of the ANDA was unlawful, arbitrary, and capricious, is unconstitutional under the Appointments Clause, and compel the FDA to order MSN to recall its generic HETLIOZ ® product. In December 2023, the Company filed a motion for summary judgment. In January 2024, the FDA opposed the Company’s motion and moved to waive the administrative record, following which the court held an oral argument on the cross-motions. The DC District Court issued an order compelling the FDA to serve the administrative record and set deadlines for further proceedings. In April 2024, the Company filed a motion for summary judgment. In July 2024, the DC District Court held an oral argument on the motion to dismiss that the FDA filed in January 2024, which the Company opposed in February 2024. In September 2024, the DC District Court granted in part the FDA’s motion to dismiss as to the Company’s APA claims and denied the FDA’s motion to dismiss as to the Company’s claims under the Appointments Clause. The Company’s lawsuit remains pending. In April 2024, the Company filed a lawsuit in the Delaware District Court against MSN, Amneal, and Impax alleging claims for false advertising in violation of the Lanham Act and unfair competition under several state laws as well as claims for breach of express representation and fraudulent inducement of a license agreement. In July 2024, the defendants filed a motion to dismiss and in September 2024, the Company opposed the motion. The Company’s lawsuit remains pending. In December 2024, the Company filed a lawsuit in the Delaware District Court against each of Teva and Apotex in the Delaware District Court, in each case, asserting U.S. Patent No. 11,918,556 (‘556 Patent), a method of administration patent that was not litigated in the prior Delaware District Court cases, will be infringed by Teva’s and Apotex’s generic versions of HETLIOZ ® , each of which was approved by the FDA. The Company has asked the Delaware District Court to, among other things, order that the effective date of the FDA’s approval of Teva’s and Apotex’ generic versions of HETLIOZ ® be a date that is no earlier than the expiration of the ‘556 Patent, or such later date that the Delaware District Court may determine, and enjoin each of Teva and Apotex from the commercial manufacture, use, import, offer for sale and/or sale of their generic versions of HETLIOZ ® until the expiration of the ‘556 Patent, or such later date that the Delaware District Court may determine. The Company’s lawsuit remains pending. HETLIOZ LQ ® . In July 2024, the Company filed a Hatch-Waxman lawsuit against MSN in the Delaware District Court asserting that U.S. Patent Nos. 10,179,119, 11,266,622, 11,285,129, 11,850,229, 10,610,510, 10,980,770, and 11,759,446 (together, the Asserted Patents) will be infringed by MSN’s generic version of HETLIOZ LQ ® for which MSN is seeking FDA approval. The Company has asked the Delaware District Court to, among other things, enter judgment that MSN has infringed at least one claim of each of the Asserted Patents by submitting or causing to be submitted its ANDA to obtain FDA approval for the commercial manufacture, use, import, offer for sale and/or sale in the U.S. of its generic version of HETLIOZ LQ ® before the expiration of each of the Asserted Patents, enter judgment that the use of MSN’s generic version of HETLIOZ LQ ® in the U.S. before the expiration of each of the Asserted Patents will directly infringe at least one claim of each of the Asserted Patents, order that the effective date of any approval by the FDA of MSN’s generic version of HETLIOZ LQ ® be a date that is no earlier than the expiration of the last expiring Asserted Patent(s), or such later date as the Court may determine, enjoin MSN from the commercial manufacture, use, import, offer for sale and/or sale of its generic version of HETLIOZ LQ ® until the expiration of each of the Asserted Patents or such later date as the Court may determine, and award monetary damages, to the extent applicable. The Company’s lawsuit remains pending, and a trial is scheduled to begin on June 15, 2026. Other Matters . From April 2022 to July 2024, the Company filed eighteen lawsuits in the DC District Court against the FDA to compel the FDA to produce records under the Freedom of Information Act (FOIA) regarding, among other matters: the FDA’s denial of the Company’s supplemental New Drug Application (sNDA) for HETLIOZ ® in the treatment of jet lag disorder; cases in which the FDA waived its putative requirement of a 9-month non-rodent toxicity study before drugs can be tested on human patients for extended durations; communications external to and within the FDA relating to tradipitant, HETLIOZ ® and Fanapt ® ; a warning letter that the FDA sent to the Company concerning its webpages for HETLIOZ ® and Fanapt ® ; the FDA’s removal of a clinical trials design presentation from its website; discipline reviews relating to the FDA’s evaluations of the Company’s sNDA for HETLIOZ ® and a third-party sNDA for jet lag; internal standard operating procedures or guidance relating to the FDA’s processing of incoming FOIA requests; and bioequivalence and other study reports submitted relating to the FDA’s consideration of tasimelteon ANDAs. Eight of these lawsuits have since been resolved in the Company’s favor and the other ten remain outstanding. The FDA has failed to respond and provide the requested documents within the statutory timeframe with respect to each of these ten outstanding cases. The Company has asked the DC District Court to, among other things, compel the FDA to comply with its obligations and declare that its lack of compliance violates FOIA. In April 2022, the Company filed a lawsuit in the U.S. District Court for the District of Maryland (MD District Court) against the Centers for Medicare & Medicaid Services (CMS) and the Administrator of CMS challenging CMS’ rule broadly interpreting the defined terms “line extension” and “new formulation” under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (ACA), which went into effect in January 2022 (the Rule). The Company believes that the Rule is unlawful and contrary to the intent of Congress when it passed the ACA. Under the Rule, certain of the Company’s products would be treated as line extensions and new formulations subject to enhanced rebates, despite the statutory text and CMS’ own long-standing practice, under which such products would not constitute line extensions or new formulations. In March 2023, the MD District Court ruled that CMS’ interpretation of the terms was reasonable and consistent with Congress’ intent. In April 2023, the Company appealed the ruling to the U.S. Court of Appeals for the Fourth Circuit (Fourth Circuit). In January 2024, the Fourth Circuit held an oral argument. In April 2024, the Fourth Circuit ruled against the Company. In September 2024, the Company filed a petition for a writ of certiorari with the U.S. Supreme Court to review the Fourth Circuit’s decision. In January 2025, the U.S. Supreme Court denied the Company’s petition for a writ of certiorari. In May 2022, the Company filed a lawsuit in the DC District Court against the FDA challenging the FDA’s denial of Fast Track designation for tradipitant. In October 2021, the Company submitted to the FDA a request for Fast Track designation for tradipitant under the Food and Drug Administration Modernization Act of 1997 (FDAMA). The FDAMA provides for expedited development and review of drugs that receive Fast Track designation from the FDA. Under the FDAMA, the FDA must designate a drug as a Fast Track product if it both (1) is intended to treat a serious or life-threatening disease or condition and (2) demonstrates the potential to address unmet medical needs for such disease or condition. Although Fast Track designation is non-discretionary when the criteria are satisfied, the FDA denied the Company’s request for Fast Track designation. The Company does not believe that the FDA based its decision on the relevant criteria. Therefore, among other reasons, the Company maintains that the FDA’s denial is unlawful. The Company has asked the DC District Court to, among other things, set aside and vacate the FDA’s denial. An oral argument was held in January 2023. In August 2023, the DC District Court ruled against the Company. In September 2023, the Company appealed the ruling to the U.S. Court of Appeals for the District of Columbia Circuit and in September 2024, the Court of Appeals held an oral argument. In December 2024, the Court of Appeals affirmed the DC District Court’s ruling. The Company is currently evaluating options with respect to this litigation. In September 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to comply with two separate non-discretionary obligations under the FDCA and its implementing regulations: an obligation to publish a notice of an opportunity for a hearing on the Company’s sNDA for HETLIOZ ® in the treatment of jet lag disorder in the Federal Register within 180 days of the filing of the sNDA, and a separate obligation to publish the same notice within 60 days of the request for a hearing. The FDA published the notice of an opportunity for a hearing on October 11, 2022. The Company has asked the DC District Court to, among other things, compel the FDA to comply with its obligations and declare that its lack of compliance violates the FDCA and the FDA regulations. In January 2024, the DC District Court held an oral argument on dispositive cross-motions, following which the DC District Court granted in part the Company’s motion for summary judgment. The DC District Court ruled that the FDA violated the statute and ordered the FDA to either finally resolve the Company’s application or commence a hearing on or before March 5, 2024. In March 2024, the Company and the FDA filed a consent motion for entry of final judgment in the Company’s favor on its Administrative Procedure Act claim for the FDA’s unreasonable delay in resolving the hearing request, following which the FDA refused to hold a hearing or approve the Company’s sNDA for HETLIOZ ® in the treatment of jet lag disorder. The Company subsequently filed a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit). Under the FDCA, the FDA has an obligation to either approve an sNDA or to hold a hearing on the application’s approvability. The Company’s petition asks the DC Circuit to set aside the FDA’s order refusing to hold a hearing and refusing approval. In January 2025, the DC Circuit held an oral argument. The Company’s petition remains pending. In May 2023, the Company filed a lawsuit in the U.S. Court of Federal Claims (Federal Claims Court) against the federal government for the uncompensated taking and misuse of the Company’s trade secrets and confidential information. The Company believes that the FDA violated the Fifth Amendment’s due process clause by improperly providing confidential details from the Company’s drug master files for HETLIOZ ® and Fanapt ® to generic drug manufacturers during the FDA’s review of the manufacturers’ ANDAs. The Company has asked the Federal Claims Court to, among other things, declare that the FDA’s disclosure of the Company’s confidential commercial information constitutes a taking for purposes of the Fifth Amendment and award just compensation. The federal government filed a motion to dismiss the complaint, which the Company opposed. In January 2024, the Federal Claims Court held an oral argument on the motion to dismiss, following which the Federal Claims Court issued a decision denying in part the government’s motion, allowing the Company’s takings claim to proceed. In April 2024, the government filed a judgment on the pleadings, to which the Company opposed in July 2024 and the government replied in August 2024. In December 2024, the Federal Claims Court held an oral argument on the motion for judgment on the pleadings and in January 2025, the Federal Claims Court ruled against the Company. In February 2025, the Company appealed the ruling. In February 2024, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to comply with its statutory obligations under the FDCA and its implementing regulations, and to challenge the FDA’s complete response letter and 60-day filing regulations, which the Company believes do not absolve the FDA of its statutory responsibilities. Under the FDCA, the FDA has an obligation to either approve the Company’s sNDA for HETLIOZ ® in the treatment of insomnia characterized by difficulties with sleep initiation within 180 days of the filing of the sNDA or give the Company a notice of an opportunity for a hearing. The Company submitted the sNDA on May 4, 2023. The Company has asked the DC District Court to, among other things, compel the FDA to comply with its obligations, declare that its lack of compliance violates the FDCA and the FDA regulations and declare the FDA’s complete response letter and 60-day filing regulations unlawful. In June 2024, the Company filed a motion for summary judgment and the FDA published a notice of opportunity for a hearing. In July 2024, the FDA opposed the Company’s motion for summary judgment. In September 2024, the DC District Court held an oral argument on the dispositive cross motions. The Company's lawsuit remains pending. In March 2024, the Company filed a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit) seeking review of the FDA’s final order refusing to hold a hearing or to approve the Company’s sNDA for HETLIOZ ® in the treatment of jet lag disorder. Under the FDCA, the FDA has an obligation to either approve an sNDA or to hold a hearing on the application’s approvability. The Company’s petition asks the DC Circuit to set aside the FDA’s order refusing to hold a hearing and refusing approval. In January 2025, the DC Circuit held an oral argument. The Company’s petition remains pending. On April 22, 2024, a purported stockholder of the Company filed a lawsuit in the Court of Chancery of the State of Delaware (Delaware Chancery Court) against the members of the Company’s board of directors and the Rights Agent, along with the Company as nominal defendant (collectively, the Defendants), captioned Steamfitters Local 449 Pension Fund v. Mihael H. Polymeropoulos, et al., CA No. 2024-0416-KSJM . The lawsuit contended, among other things, that the members of the Company’s board of directors breached their fiduciary duties in adopting the Rights Agreement. The lawsuit sought relief declaring, in part, that provisions of the Rights Agreement be deemed unenforceable and sought to enjoin the use of such provisions as well as damages, costs, and other remedies, and also sought to enjoin for 30 days the Company’s 2024 Annual Meeting of Stockholders (the Annual Meeting) that was held on May 17, 2024. At a hearing on May 7, 2024, the Delaware Chancery Court denied the plaintiff’s request to enjoin the Annual Meeting. A three-day trial in the case was scheduled to begin on November 4, 2024. On August 7, 2024, the Company amended the Rights Agreement to, among other things, clarify certain of the provisions that were the subject of the lawsuit. On August 12, 2024, the parties filed with the Delaware Chancery Court a stipulation and order dismissing the lawsuit with prejudice, pursuant to which, the plaintiff agreed that the amendment to the Rights Agreement mooted the plaintiff’s claims. The plaintiff filed a petition in the Delaware Chancery Court for an award of attorney’s fees and reimbursement of expenses, which the Company is opposing. In February 2025, the Delaware Chancery Court held a hearing, and a decision remains pending. In August 2024, the Company filed a lawsuit against the FDA in the DC District Court challenging FDA decisionmakers’ authority under the Appointments Clause of the U.S. Constitution to render a decision on the Company’s new drug application for tradipitant to treat symptoms of gastroparesis. In September 2024, the Company filed a motion for a preliminary injunction to enjoin the FDA from subjecting the Company’s NDA for tradipitant for the treatment of symptoms of gastroparesis to a final decision prior to the PDUFA target date of September 18, 2024. In September 2024, the DC District Court denied the motion. The Company filed a motion for summary judgment in December 2024, and in January 2025, the FDA opposed the motion and cross-moved to dismiss and for summary judgment. The Company’s lawsuit remains pending. In January 2025, the Company and a co-plaintiff filed a lawsuit against the FDA in the Middle District of Florida District Court (Florida District Court) challenging the FDA’s partial clinical hold preventing the Company from studying the effects of tradipitant for the prevention of motion sickness for more than 90 total doses per patient over a period of two years. The FDA based its partial clinical hold on the Company’s refusal to perform a repeat-dose toxicity study in a non-rodent species of at least a 6-month duration. However, under the FDA Modernization Act 2.0, nonclinical studies may include non-animal alternatives. The Company believes that the FDA’s basis for the partial clinical hold is contrary to law and in excess of the FDA’s statutory authority. The Company and co-plaintiff have asked the Florida District Court to, among other things, set aside the FDA’s partial clinical hold and declare the FDA’s partial clinical hold as unlawful. The Company’s lawsuit remains pending.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income (loss)	$ (18,900)	$ 2,509	$ 6,275

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Insider Trading Policies and Pr

Insider Trading Policies and Procedures	12 Months Ended
	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management a

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
	Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats, as such term is defined in Item 106(a) of Regulation S-K. These risks include, among other things, operational risks, intellectual property theft, fraud, extortion, harm to employees or customers, violation of privacy or security laws and other litigation and legal risk and reputational risks. We have implemented several cybersecurity processes, technologies and controls to aid in our efforts to assess, identify and manage such material risks. Our process for identifying and assessing material risks from cybersecurity threats operates alongside our broader overall risk assessment process, covering all company risks. As part of this process, appropriate personnel will collaborate with subject matter specialists, as necessary, to gather insights for identifying and assessing material cybersecurity threat risks, their severity and potential mitigations. We also have a cybersecurity specific risk assessment process, which helps identify our cybersecurity threat risks. As part of this process, and our processes to provide for the availability of critical data and systems, maintain regulatory compliance, identify and manage our risks from cybersecurity threats and to protect against, detect and respond to cybersecurity incidents, as such term is defined in Item 106(a) of Regulation S-K, we undertake the below listed activities, among others: • compare our processes to benchmark standards, such as those set by the National Institute of Standards and Technology (NIST); • closely monitor emerging data protection laws and implement changes to our processes designed to comply; • conduct annual customer data handling and use requirements training for employees; • conduct annual cybersecurity management and incident training for employees involved in our systems and processes that handle sensitive data; • through policy, practice and contract, as applicable, require employees, as well as third-parties who provide services on our behalf, to treat customer information and data with care; • run tabletop exercises to simulate a response to a cybersecurity incident and use the findings to improve our processes and technologies; • conduct regular network and endpoint monitoring, vulnerability assessments, and penetration testing to improve our information systems, as such term is defined in Item 106(a) of Regulation S-K; • leverage the NIST incident handling framework to help us govern, identify, protect, detect, respond and recover when there is an actual or potential cybersecurity incident; and • carry information security risk insurance that provides protection against the potential losses arising from a cybersecurity incident. Our incident response plan coordinates the activities we take to prepare for, detect, respond to and recover from cybersecurity incidents, which include processes to triage, assess severity for, escalate, contain, investigate and remediate the incident, as well as to comply with potentially applicable legal obligations and mitigate brand and reputational damage. As part of the above processes, we may engage with assessors, consultants, auditors and other third-parties, including by having a third-party review our cybersecurity program to help identify areas for continued focus, improvement and/or compliance. Our processes also address cybersecurity threat risks associated with our use of third-party service providers, including those in our supply chain, our CROs or those who have access to our customer and employee data or our systems. Third-party risks are included within our broader overall risk assessment process, as well as our cybersecurity-specific risk identification program, both of which are discussed above. In addition, cybersecurity considerations affect the selection and oversight of our third-party service providers. We perform diligence on third-parties that have access to our systems, data or facilities that house such systems or data, and continually monitor cybersecurity threat risks identified through such diligence. We describe whether and how risks from identified cybersecurity threats have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition, under the risk factors entitled “ We are increasingly dependent on information technology systems, infrastructure and data. Cybersecurity breaches could expose us to liability, damage our reputation, compromise our confidential information or otherwise adversely affect our business ,” and “ Our internal computer systems, or those of our collaborators, CROs or other contractors or consultants, may fail or suffer security breaches, which could result in a material disruption of development programs for our product candidates ,” in Part I, Item 1A of this Annual Report on Form 10-K, each of which is incorporated herein by reference.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	We have implemented several cybersecurity processes, technologies and controls to aid in our efforts to assess, identify and manage such material risks. Our process for identifying and assessing material risks from cybersecurity threats operates alongside our broader overall risk assessment process, covering all company risks. As part of this process, appropriate personnel will collaborate with subject matter specialists, as necessary, to gather insights for identifying and assessing material cybersecurity threat risks, their severity and potential mitigations.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	Cybersecurity is an important part of our risk management processes and an area of increasing focus for our Board and management. Our Audit Committee is responsible for the oversight of risks from cybersecurity threats. At least quarterly, the Audit Committee receives an overview from management of our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre-determined risk-mitigation-related goals, our incident response plan and material cybersecurity threat risks or incidents and developments, as well as the steps management has taken to respond to such risks. Members of the Audit Committee are also encouraged to regularly engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs. Material cybersecurity threat risks are also considered during separate Board meeting discussions of important matters like risk management, business continuity planning, brand management, and other relevant matters. Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by a team of senior level management, including our President, Chief Executive Officer and Chairman of the Board, Senior Vice President, Chief Financial Officer and Treasurer, Senior Vice President, General Counsel and Secretary, and VP of Information Technology. Such individuals collectively have significant prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs. These members of management are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan. As discussed above, these members of management report to the Audit Committee about cybersecurity threat risks, among other cybersecurity related matters.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	Our Audit Committee is responsible for the oversight of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	As discussed above, these members of management report to the Audit Committee about cybersecurity threat risks, among other cybersecurity related matters.
Cybersecurity Risk Role of Management [Text Block]	Our Audit Committee is responsible for the oversight of risks from cybersecurity threats. At least quarterly, the Audit Committee receives an overview from management of our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre-determined risk-mitigation-related goals, our incident response plan and material cybersecurity threat risks or incidents and developments, as well as the steps management has taken to respond to such risks. Members of the Audit Committee are also encouraged to regularly engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs. Material cybersecurity threat risks are also considered during separate Board meeting discussions of important matters like risk management, business continuity planning, brand management, and other relevant matters. Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by a team of senior level management, including our President, Chief Executive Officer and Chairman of the Board, Senior Vice President, Chief Financial Officer and Treasurer, Senior Vice President, General Counsel and Secretary, and VP of Information Technology. Such individuals collectively have significant prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs. These members of management are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan. As discussed above, these members of management report to the Audit Committee about cybersecurity threat risks, among other cybersecurity related matters.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by a team of senior level management, including our President, Chief Executive Officer and Chairman of the Board, Senior Vice President, Chief Financial Officer and Treasurer, Senior Vice President, General Counsel and Secretary, and VP of Information Technology. Such individuals collectively have significant prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by a team of senior level management, including our President, Chief Executive Officer and Chairman of the Board, Senior Vice President, Chief Financial Officer and Treasurer, Senior Vice President, General Counsel and Secretary, and VP of Information Technology. Such individuals collectively have significant prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	These members of management are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Business Organization	Business Organization Vanda Pharmaceuticals Inc. (the Company or Vanda) is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003. The Company’s commercial portfolio is currently comprised 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. HETLIOZ ® is the first product approved by the United States Food and Drug Administration (FDA) for patients with Non-24 and for patients with SMS. In addition, the Company has a number of drugs and/or additional indications for current products in development, including: • Fanapt ® (iloperidone) long acting injectable (LAI) formulation for the treatment of schizophrenia; • Bysanti TM (milsaperidone), the active metabolite of Fanapt ® (iloperidone), for the acute treatment of manic or mixed episodes associated with bipolar I disorder and for the treatment of schizophrenia and major depressive disorder (MDD); • HETLIOZ ® (tasimelteon) for the treatment of jet lag disorder, insomnia, pediatric insomnia, delayed sleep phase disorder (DSPD) and pediatric Non-24; • PONVORY ® (ponesimod) for the treatment of psoriasis and ulcerative colitis; • Tradipitant (VLY-686), a small molecule neurokinin-1 (NK-1) receptor antagonist, for the treatment of gastroparesis, motion sickness and atopic dermatitis; • Imsidolimab, an IL-36R antagonist, for the treatment of generalized pustular psoriasis (GPP); • VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of onychomycosis and hematologic malignancies and with potential use as a treatment for several oncology indications; • Portfolio of Cystic Fibrosis Transmembrane Conductance Regulator (CFTR) activators and inhibitors, including VSJ-110 for the treatment of dry eye and ocular inflammation and VPO-227 for the treatment of secretory diarrhea disorders, including cholera; • VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist, for the treatment of social/performance anxiety and psychiatric disorders; and • Antisense oligonucleotide (ASO) molecules, including VCA-894A for the treatment of Charcot-Marie-Tooth Disease, Type 2S (CMT2S), caused by cryptic slice site variants within the IGHMBP2 gene and VGT-1849A for the treatment of polycythemia vera (PV), a form of a rare hematologic malignancy.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Vanda Pharmaceuticals Inc. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. Management continually re- evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates under different assumptions or conditions.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash
Marketable Securities	Marketable Securities The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income (loss). At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. The Company also reviews its available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is the result of a change in creditworthiness or other factors. If declines in the value of available for-sale securities are determined to be credit-related, a loss is recorded in earnings in the current period. Interest and dividend income is recorded when earned and included in other income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to earliest call date and maturity, respectively, and included in other income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the Consolidated Statements of Operations when generated. All available-for-sale marketable securities are available for use in current operations and are classified as current. The Company’s assets classified in Level 1 and Level 2 as of December 31, 2024 and 2023 consist of cash equivalents and available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach and is
Inventory	Inventory Inventory, which is recorded at the lower of cost or net realizable value, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company evaluates the risk of excess inventory and product expiry by evaluating current and future product demand relative to product shelf life, taking into account all possible alternative uses for the inventory available in the ordinary course of business. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance, patient usage and generic competition. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next 12 months. The Company classifies the estimate of such inventory as non-current.
Asset Acquisitions	Asset Acquisitions The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If determined to be an asset acquisition, the Company accounts for the transaction under Accounting Standards Codification (ASC) 805-50, which requires the recognition of assets acquired and liabilities assumed on a relative fair value basis based on the acquisition cost, which includes transaction costs in addition to consideration given. Any excess consideration transferred over the fair value of the net assets acquired is allocated to the identifiable assets based on relative fair values.
Intangible Assets	Intangible Assets Costs incurred for products not yet approved by the FDA and for which no alternative future use exists are recorded as research and development expense. Obligations for milestone payments to other pharmaceutical companies that may result in a capitalized intangible asset are recognized when it is deemed probable that the milestone event will occur. In the event a product has been approved by the FDA or an alternative future use exists for a product, patent and license costs are capitalized and amortized on a straight-line basis over the estimated useful economic life of the related product patents. For intangible assets related to HETLIOZ ® , the estimated useful life is through 2035, which is the estimated economic useful life of the related product patents. Useful lives for acquired intangible assets accounted for under ASC 805 are generally estimated based on the market participant methodology. For intangible assets related to PONVORY ® , the estimated useful life is through 2042, which is the estimated economic useful life of the related acquired product patents. Intangible assets related to Fanapt ® have been fully amortized on a straight-line basis to 2016. The Fanapt ® transaction represented reacquired rights, and therefore did not reflect the impact of additional Fanapt ® patents solely owned by the Company with varying expiration dates, the latest of which is December 2031.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of most property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized using a straight-line basis over the lesser of the estimated useful lives of the assets or the terms of the related leases. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statement of Operations for that period.
Leases	Leases The Company determines if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from that lease. For leases with a term greater than 12 months, ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term includes the option to extend the lease when it is reasonably certain the Company will exercise that option. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. When the implicit rate is not available, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including publicly available data for instruments with similar characteristics, to determine the present value of lease payments. The Company does not combine lease and non-lease elements for office or vehicle leases.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities
Revenue from Net Product Sales	Revenue from Net Product Sales
Major Customers	The Company’s HETLIOZ ® net product sales as reported for the three months ended March 31, 2023 reflected higher unit sales as compared to recent prior periods. The higher unit sales during the three months ended March 31, 2023 resulted in a significant increase of inventory stocking at specialty pharmacy customers at March 31, 2023. During the remainder of 2023, although there was continued destocking at specialty pharmacy customers, inventory levels remained elevated relative to inventory levels prior to the entrance of generic competition and remained elevated throughout 2024. Going forward, HETLIOZ ® net product sales may reflect lower unit sales as a result of reduction of the elevated inventory levels at specialty pharmacy customers or may be variable depending upon when specialty pharmacy customers need to purchase again. Further, HETLIOZ ® net product sales will likely decline in future periods, potentially significantly, related to continued generic competition in the U.S. The Company constrained HETLIOZ ® net product sales for the years ended December 31, 2024 and 2023 to an amount not probable of significant revenue reversal. The amount of revenue recognized during the year ended December 31, 2024 related to changes in estimates on revenue constrained during 2023 was $1.3 million. HETLIOZ ® net product sales could experience variability in future periods as the remaining uncertainties associated with variable consideration related to inventory stocking by specialty pharmacy customers are resolved. The Company's PONVORY ® net product sales for the year ended December 31, 2024 include approximately $3.0 million of variable consideration that may be subject to dispute but that the Company believes is not probable of significant revenue reversal. Fanapt ® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. HETLIOZ ® is available in the U.S. for distribution through a limited number of specialty pharmacies and is not available in retail pharmacies. PONVORY ® is available in the U.S. for distribution primarily through a limited number of specialty distributors and specialty pharmacies. The Company invoices and records revenue when its customers, wholesalers, specialty pharmacies and specialty distributors, receive product from the third-party logistics warehouse, which is the point at which control is transferred to the customer. Revenues and accounts receivable are concentrated with these customers. Outside the U.S., the Company has a distribution agreement for the commercialization of Fanapt ® in Israel and sells HETLIOZ ®
Reserves for Variable Consideration	The transaction price is determined based upon the consideration to which the Company will be entitled in exchange for transferring product to the customer. The Company’s product sales are recorded net of applicable product revenue allowances for which reserves are established and include discounts, rebates, chargebacks, service fees, co-pay assistance and product returns that are applicable for various government and commercial payors. Where appropriate, the Company’s estimates of variable consideration included in the transaction price consider a range of possible outcomes. Allowances for rebates, chargebacks and co-pay assistance are based upon the insurance benefits of the end customer, which are estimated using historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Variable consideration may be constrained and is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. If actual results in the future vary from the Company’s estimates, it adjusts its estimates in the period identified, which would affect net product sales in the period such variances become known. During the year ended December 31, 2024, the Company constrained the variable consideration for HETLIOZ ® net product sales. The constrained revenue relates to the uncertainties of payor utilization, patient demand and chargeback and rebate amounts, including Medicaid, related to the elevated levels of inventory on hand at the specialty pharmacies. Reserves for variable consideration are classified as product revenue allowances on the Consolidated Balance Sheets, with the exception of prompt-pay discounts which are classified as reductions of accounts receivable. The reserve for product returns for which the product may not be returned for a period of greater than one year from the balance sheet date is included as a component of other non-current liabilities in the Consolidated Balance Sheets. Uncertainties related to variable consideration are generally resolved in the quarter subsequent to period end, with the exception of Medicaid rebates, which are dependent upon the timing of when states submit reimbursement claims, Medicare inflationary rebates, which are expected to be billed on an annual basis beginning in 2025, and product returns that are resolved during the product expiry period specified in the customer contract. Due to increased inventory stocking at specialty pharmacy customers of HETLIOZ ® in 2024 and 2023, the time it takes to resolve these uncertainties could be longer than the Company has historically experienced. The Company currently records sales allowances for the following: • Prompt-pay: Wholesalers, specialty pharmacies and specialty distributors, the Company’s direct customers, are generally offered discounts for prompt payment. The Company expects that these direct customers will earn prompt payment discounts and, therefore, deducts the full amount of these discounts from total product sales when revenues are recognized. • Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program as well as contracted rebate programs with other payors, including the Medicare Part D inflationary rebate effective October 1, 2022. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid and Medicare. The allowances for rebates are based on statutory or contracted discount rates and estimated patient utilization. • Chargebacks: Chargebacks are discounts that occur when contracted indirect customers purchase directly from wholesalers, specialty pharmacies and specialty distributors. Contracted indirect customers, which currently consist primarily of Public Health Service institutions and federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The wholesaler, specialty pharmacy or specialty distributor, in turn, charges back the difference between the price initially paid by the wholesaler, specialty pharmacy or specialty distributor and the discounted price paid to the wholesaler, specialty pharmacy or specialty distributor by the contracted customer. • Medicare Part D Rebates: The Medicare Part D prescription drug benefit requires manufacturers to fund approximately 70% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients for applicable drugs. The Company accounts for the Medicare Part D coverage gap using a point of sale model. Estimates for expected Medicare Part D rebates are based, in part, on historical activity and, where available, actual and pending prescriptions when the Company has validated the insurance benefits. Beginning January 1, 2025, the Medicare Part D coverage gap discount program was replaced with a new discounting program under the Inflation Reduction Act of 2022. The Medicare Part D benefit redesign is expected to result in higher discounts for our Medicare payor segment relative to the current Medicare Part D prescription drug coverage gap discount program. Under the redesigned Medicare Part D program, applicable drugs dispensed to applicable beneficiaries will be subject to manufacturer discounts of 10% during the initial coverage phase and 20% during the catastrophic coverage phase. Manufacturers may be eligible for phase-in of discounts, such as for applicable beneficiaries who are Low Income Subsidy (LIS) eligible under section 1860D-14(a) of the Social Security Act. The Company is a specified manufacturer whose applicable drugs for applicable beneficiaries who are LIS eligible will be subject to lower applicable discounts during the phase-in period. • Service Fees: The Company receives sales order management, data and distribution services from certain customers, for which it is assessed fees. These fees are based on contracted terms and are known amounts. The Company accrues service fees at the time of revenue recognition, resulting in a reduction of product sales and the recognition of an accrued liability, unless it is a payment for a distinct good or service from the customer in which case the fair value of those distinct goods or services are recorded as selling, general and administrative expense. • Co-pay Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-pay assistance. Co-pay assistance utilization is based on information provided by the Company’s third-party administrator. • Product Returns
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold includes royalties payable, the cost of inventory sold, costs to write down inventory to net realizable value, manufacturing and supply chain costs and product shipping and handling costs related to sales of HETLIOZ ® and Fanapt ® to the Company’s distribution partners.
Research and Development Expenses	Research and Development Expenses Research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services for clinical trial use, milestone payments made under licensing agreements prior to regulatory approval, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee-related costs and stock-based compensation for research and development personnel. The Company expenses research and development costs as they are incurred for products in the development stage, including manufacturing costs and milestone payments made under license agreements prior to FDA approval. Upon and subsequent to FDA approval, manufacturing and milestone payments made under license agreements are capitalized. Milestone payments are accrued when it is deemed probable that the milestone event will be achieved. Costs related to the acquisition of intellectual property are expensed as incurred if the underlying technology is developed in connection with the Company’s research and development efforts and has no alternative future use.
Selling, General and Administrative Expenses	Selling, General and Administrative Expenses Selling, general and administrative expenses consist of salaries, other employee-related costs and stock-based compensation, and facilities and third-party expenses. Selling, general and administrative expenses are associated with the activities of the corporate, finance, accounting, information technology, business development, commercial support, trade and distribution, sales, marketing, legal, medical affairs and human resource functions. Additionally, selling, general and administrative expenses include an estimate for the annual Affordable Care Act fee.
Stock-Based Compensation	Stock-Based Compensation Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company recognizes the expense over the award’s vesting period. The fair value of stock options granted and restricted stock units (RSUs) awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
Advertising Expense	Advertising Expense
Foreign Currency	Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s international subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies, including intercompany balances for which settlement is anticipated in the foreseeable future, are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income (loss).
Income Taxes	Income Taxes
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to provide enhanced segment disclosures. The standard will require disclosures about significant segment expenses and other segment items and identifying the Chief Operating Decision Maker and how they use the reported segment profitability measures to assess segment performance and allocate resources. These enhanced disclosures are required for all entities on an interim and annual basis, even if they have only a single reportable segment. The standard is effective for years beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024 and early adoption is permitted. The adoption of this standard for the year ended December 31, 2024 did not have a material impact on the Company’s consolidated financial results, but resulted in enhanced disclosures as included in Note 17, Segments . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to provide enhancements to annual income tax disclosures. The standard will require more detailed information in the rate reconciliation table and for income taxes paid, among other enhancements. The standard is effective for years beginning after December 15, 2024 and early adoption is permitted. The Company is evaluating this standard to determine if adoption will have a material impact on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220-40), which addresses the disaggregation of income statement expenses. This standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating this standard to determine if adoption will have a material impact on the Company’s consolidated financial statements.
Earnings per Share	Earnings per Share Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive, as calculated using the treasury stock method.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total end of period cash, cash equivalents and restricted cash reported within the Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023: December 31, (in thousands) 2024 2023 Cash and cash equivalents $ 102,316 $ 135,821 Restricted cash included in non-current inventory and other 469 469 Total cash, cash equivalents and restricted cash $ 102,785 $ 136,290
Schedule of Net Sales by Product	Net sales by product for the years ended December 31, 2024, 2023 and 2022 were as follows: Year Ended December 31, ( in thousands ) 2024 2023 2022 Fanapt ® net product sales $ 94,297 $ 90,873 $ 94,727 HETLIOZ ® net product sales 76,675 100,167 159,655 PONVORY ® net product sales 27,800 1,600 — Total net product sales $ 198,772 $ 192,640 $ 254,382
Schedule of Major Customers that Represented More Than 10% of Total Revenues	The following table presents each major customer that represented more than 10% of total revenues for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, Percent of Net Product Sales 2024 2023 2022 Customer A 21 % 15 % * Customer B 17 % 14 % 11 % Customer C 16 % 15 % 11 % Customer D 15 % 16 % 13 % Customer E * 20 % 36 % Customer F * * 16 % Total net product sales from major customers 69 % 80 % 87 % *Represents less than 10% of respective balance.
Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net	The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2024 and 2023: December 31, Percent of Accounts Receivable, Net 2024 2023 Customer A 21 % 34 % Customer B 27 % 16 % Customer C 18 % 21 % Customer D * 19 % Customer E 18 % * Customer F * * Total accounts receivable, net from major customers 84 % 90 % *Represents less than 10% of respective balance.
Schedule of Product Return Allowance	The following table summarizes activity for product returns as of and for the years ended December 31, 2024, 2023 and 2022, all of which relates to sales of Fanapt ® : (in thousands) Reserve for Product Returns Balances at December 31, 2021 $ 4,551 Additions 4,332 Credits/payments (3,739) Balances at December 31, 2022 5,144 Additions 3,001 Credits/payments (2,934) Balances at December 31, 2023 5,211 Additions 2,780 Credits/payments (3,060) Balances at December 31, 2024 $ 4,931

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Marketable Securities	The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2024, which all have contractual maturities of less than two years: (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 227,720 $ 371 $ (261) $ 227,830 Corporate debt 44,506 9 (18) 44,497 Total marketable securities $ 272,226 $ 380 $ (279) $ 272,327 The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2023, which all have contractual maturities of less than two years: (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 185,168 $ 227 $ (280) $ 185,115 Corporate debt 67,352 2 (26) 67,328 Total marketable securities $ 252,520 $ 229 $ (306) $ 252,443

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on Recurring Basis	The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2024, as follows: Fair Value Measurement as of December 31, 2024 Using (in thousands) Total Fair Value Quoted Prices in Significant Other Significant U.S. Treasury and government agencies $ 227,830 $ 227,830 $ — $ — Corporate debt 44,497 — 44,497 — Total assets measured at fair value $ 272,327 $ 227,830 $ 44,497 $ — The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2023, as follows: Fair Value Measurement as of December 31, 2023 Using (in thousands) Total Fair Value Quoted Prices in Significant Other Significant U.S. Treasury and government agencies $ 209,103 $ 209,103 $ — $ — Corporate debt 107,108 — 107,108 — Total assets measured at fair value $ 316,211 $ 209,103 $ 107,108 $ —

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following as of December 31, 2024 and 2023: (in thousands) December 31, 2024 December 31, 2023 Current assets Work-in-process $ — $ 27 Finished goods 1,726 1,330 Total inventory, current $ 1,726 $ 1,357 Non-Current assets Raw materials $ 934 $ 934 Work-in-process 6,236 7,177 Finished goods 617 737 Total inventory, non-current 7,787 8,848 Total inventory $ 9,513 $ 10,205

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment-at Cost	The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2024 and 2023: (in thousands) Estimated December 31, 2024 December 31, 2023 Computer and other equipment 3 $ 6,734 $ 6,284 Furniture and fixtures 5 - 7 1,497 1,496 Leasehold improvements 5 - 11 5,468 5,438 Total property and equipment, gross 13,699 13,218 Accumulated depreciation and amortization (11,567) (11,181) Total property and equipment, net $ 2,132 $ 2,037

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Schedule of Lease Assets and Liabilities	The following is a summary of the Company’s ROU assets and lease liabilities as of December 31, 2024 and 2023: (in thousands) Classification on the Balance Sheet December 31, 2024 December 31, 2023 Assets Operating lease assets Operating lease right-of-use assets $ 5,602 $ 7,103 Finance lease assets Finance lease right-of-use assets 4,943 — Total lease assets $ 10,545 $ 7,103 Liabilities Operating lease current liabilities Accounts payable and accrued liabilities $ 2,456 $ 2,398 Finance lease current liabilities Accounts payable and accrued liabilities 1,814 — Operating lease non-current liabilities Operating lease non-current liabilities 4,944 7,006 Finance lease non-current liabilities Finance lease non-current liabilities 3,146 — Total lease liabilities $ 12,360 $ 9,404 Weighted average remaining lease term, operating leases 3.3 4.3 Weighted average discount rate, operating leases 8.2 % 8.2 % Weighted average remaining lease term, finance leases 2.9 — Weighted average discount rate, finance leases 6.4 % — %
Schedule of Components of Lease Expense	The components of lease expense for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Operating lease cost: Fixed lease cost $ 2,223 $ 2,216 $ 2,226 Short-term lease cost 426 396 389 Finance lease cost: Amortization 171 — — Interest 32 — — Total lease costs $ 2,852 $ 2,612 $ 2,615 Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 2,723 $ 2,659 $ 2,581 Operating cash flows from finance leases 32 — — Financing cash flows from finance leases 155 — — Right-of-use assets obtained in exchange for lease obligations: Finance leases 5,114 — —
Schedule of Reconciliation of Future Cash Obligations to Operating Lease Liabilities	The table below reconciles the Company’s future cash obligations to lease liabilities recorded on the balance sheet as of December 31, 2024: (in thousands) Operating Leases Finance Leases 2025 $ 2,792 $ 1,877 2026 2,409 1,877 2027 2,159 1,689 2028 1,099 — 2029 — — Thereafter — — Total minimum lease payments 8,459 5,443 Less: amount of lease payments representing interest (1,059) (483) Present value of future minimum lease payments 7,400 4,960 Less: current obligations under leases (2,456) (1,814) Lease non-current liabilities $ 4,944 $ 3,146
Schedule of Reconciliation of Future Cash Obligations to Finance Lease Liabilities	The table below reconciles the Company’s future cash obligations to lease liabilities recorded on the balance sheet as of December 31, 2024: (in thousands) Operating Leases Finance Leases 2025 $ 2,792 $ 1,877 2026 2,409 1,877 2027 2,159 1,689 2028 1,099 — 2029 — — Thereafter — — Total minimum lease payments 8,459 5,443 Less: amount of lease payments representing interest (1,059) (483) Present value of future minimum lease payments 7,400 4,960 Less: current obligations under leases (2,456) (1,814) Lease non-current liabilities $ 4,944 $ 3,146

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The following is a summary of the Company’s amortizing intangible assets as of December 31, 2024: December 31, 2024 (in thousands) Estimated Gross Accumulated Net HETLIOZ ® 2035 $ 33,000 $ 17,400 $ 15,600 PONVORY ® 2042 104,894 6,398 98,496 Total amortizing intangible assets $ 137,894 $ 23,798 $ 114,096 The following is a summary of the Company’s amortizing intangible assets as of December 31, 2023: December 31, 2023 (in thousands) Estimated Gross Accumulated Net HETLIOZ ® 2035 $ 33,000 $ 15,937 $ 17,063 PONVORY ® 2035 104,894 588 104,306 Total amortizing intangible assets $ 137,894 $ 16,525 $ 121,369
Schedule of Amortization Expense	Amortization expense for the years ended December 31, 2024, 2023 and 2022 was as follows: Year Ended December 31, (in thousands) 2024 2023 2022 HETLIOZ ® $ 1,463 $ 1,502 $ 1,516 PONVORY ® 5,810 588 — Total amortization expense $ 7,273 $ 2,090 $ 1,516
Schedule of Future Intangible Asset Amortization	The following is a summary of the future intangible asset amortization schedule as of December 31, 2024: (in thousands) Total 2025 2026 2027 2028 2029 Thereafter HETLIOZ ® $ 15,600 $ 1,463 $ 1,463 $ 1,463 $ 1,463 $ 1,463 $ 8,285 PONVORY ® 98,496 5,544 5,544 5,544 5,544 5,544 70,776 Total amortization expense $ 114,096 $ 7,007 $ 7,007 $ 7,007 $ 7,007 $ 7,007 $ 79,061

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2024 and 2023: (in thousands) December 31, 2024 December 31, 2023 Research and development expenses $ 11,962 $ 15,691 Consulting and other professional fees 9,226 4,404 Compensation and employee benefits 8,465 6,413 Operating lease liabilities 2,456 2,398 Finance lease liabilities 1,814 — Royalties payable 1,665 2,409 Accounts payable and other accrued liabilities 3,498 7,145 Total accounts payable and accrued liabilities $ 39,086 $ 38,460

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Schedule of Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss)	The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows for the years ended December 31, 2024 and 2023: (in thousands) December 31, 2024 December 31, 2023 Foreign currency translation $ (13) $ 21 Unrealized gain (loss) on marketable securities 87 (51) Accumulated other comprehensive income (loss) $ 74 $ (30)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Option Activity	A summary of option activity under the Plans for the year ended December 31, 2024 is as follows: (in thousands, except for share and per share amounts) Number of Weighted Average Weighted Average Aggregate Outstanding at December 31, 2023 4,792,506 $ 12.95 6.00 $ — Granted 190,514 5.41 Expired (379,439) 12.02 Outstanding at December 31, 2024 4,603,581 12.71 5.60 — Exercisable at December 31, 2024 3,778,833 13.73 5.05 — Vested and expected to vest at December 31, 2024 4,560,920 12.76 5.58 —
Schedule of RSU Activity	A summary of RSU activity for the Plans for the year ended December 31, 2024 is as follows: Number of Weighted Unvested at December 31, 2023 1,905,310 $ 10.87 Granted 1,652,903 4.48 Forfeited (132,062) 7.91 Vested (776,145) 11.54 Unvested at December 31, 2024 2,650,006 6.82
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense recognized for the years ended December 31, 2024, 2023 and 2022 was comprised of the following: Year Ended December 31, (in thousands) 2024 2023 2022 Research and development $ 2,960 $ 3,323 $ 3,964 Selling, general and administrative 9,472 10,717 12,315 Total stock-based compensation expense $ 12,432 $ 14,040 $ 16,279
Schedule of Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted	Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the years ended December 31, 2024, 2023 and 2022 were as follows: Year Ended December 31, 2024 2023 2022 Expected dividend yield — % — % — % Weighted average expected volatility 50 % 47 % 46 % Weighted average expected term (years) 6.27 6.16 6.05 Weighted average risk-free rate 4.52 % 3.89 % 2.03 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of the Domestic and Foreign Components of Income (Loss) Before Income Taxes	The following is a summary of the domestic and foreign components of income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands) 2024 2023 2022 Domestic $ (23,042) $ 6,184 $ 11,216 Foreign 121 155 84 Total income (loss) before income taxes $ (22,921) $ 6,339 $ 11,300
Schedule of Provision (Benefit) for Income Taxes	The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands) 2024 2023 2022 Current Federal $ 1,654 $ 2,577 $ — State 749 2,447 3,710 Foreign 58 91 185 Deferred Federal (4,760) (2,240) 1,238 State (1,719) 970 (111) Foreign (3) (15) 3 Provision (benefit) for income taxes $ (4,021) $ 3,830 $ 5,025
Schedule of Reconciliation Between Statutory Tax Rate and Effective Tax Rate	The following is a reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, 2024 2023 2022 Federal tax at statutory rate 21.0 % 21.0 % 21.0 % State taxes 4.3 % 5.0 % 4.8 % Change in valuation allowance (1.5) % 22.6 % 1.0 % Research and development credit 12.8 % (69.3) % (25.9) % Orphan drug credit 1.0 % (4.5) % (0.9) % Section 162(m) limitation (4.5) % 17.2 % 9.4 % Other tax rate changes (0.5) % (23.4) % 1.7 % Other changes in state deferred taxes 1.0 % 12.7 % — % Uncertain tax positions (5.9) % 41.0 % 24.5 % Stock-based compensation (7.1) % 30.2 % 5.8 % Settlements (0.1) % 2.7 % 2.6 % Non-deductible items (2.6) % 5.5 % 0.3 % Other items (0.3) % (0.3) % 0.2 % Effective tax rate 17.6 % 60.4 % 44.5 %
Schedule of Components of Net Deferred Tax Assets and Related Valuation Allowance	The following is a summary of the components of the Company’s net deferred tax assets and the related tax valuation allowance as of December 31, 2024 and 2023. (in thousands) December 31, 2024 December 31, 2023 Deferred tax assets Net operating loss carryforwards $ 5,962 $ 5,897 Stock-based compensation 3,606 4,187 Accrued expenses 2,113 1,453 Allowance for returns and credit losses 1,716 1,748 Research and development and orphan drug credit carryforwards 36,214 38,559 Capitalized research and development expenses 38,393 29,036 Other 4,537 5,037 Total deferred tax assets 92,541 85,917 Deferred tax liabilities Intangible assets (961) (812) Other (1,253) (1,558) Total deferred tax liabilities (2,214) (2,370) Deferred tax assets, net 90,327 83,547 Less: Valuation allowance 8,887 8,547 Net deferred tax assets $ 81,440 $ 75,000
Schedule of Changes in Tax Valuation Allowance	The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2024, 2023 and 2022: (in thousands) Balance at Beginning of Year Additions Reductions Balance at End of Year Year Ended December 31, 2024 $ 8,547 $ 340 $ — $ 8,887 December 31, 2023 7,136 1,411 — 8,547 December 31, 2022 7,025 111 — 7,136
Schedule of Reconciliation of Gross Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Year Ended December 31, (in thousands) 2024 2023 2022 Unrecognized tax benefits at the beginning of the year $ 18,312 $ 15,485 $ 12,935 Increases (decreases) related to prior year tax positions (159) 919 (75) Increases related to current year tax positions 742 2,003 2,895 Settlements — — (270) Statute lapses $ (99) $ (95) $ — Unrecognized tax benefits at the end of the year $ 18,796 $ 18,312 $ 15,485

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income (Loss) Per Share of Common Stock	The following table presents the calculation of basic and diluted net income (loss) per share of common stock for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands, except for share and per share amounts) 2024 2023 2022 Numerator: Net income (loss) $ (18,900) $ 2,509 $ 6,275 Denominator: Weighted average shares outstanding, basic 58,149,087 57,380,975 56,461,877 Effect of dilutive securities — 176,936 521,294 Weighted average shares outstanding, diluted 58,149,087 57,557,911 56,983,171 Net income (loss) per share, basic and diluted: Basic $ (0.33) $ 0.04 $ 0.11 Diluted $ (0.33) $ 0.04 $ 0.11 Antidilutive securities excluded from calculations of diluted net income (loss) per share 6,493,140 6,464,057 4,786,891

Segments (Tables)

Segments (Tables)	12 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
Schedule of Segment Revenue and Significant Expenses	The following table presents the segment revenue and significant expense categories included within the product segment’s measure of profit or loss for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, (in thousands) 2024 2023 2022 Revenue $ 198,772 $ 192,640 $ 254,382 Less: Cost of goods sold, excluding amortization 11,314 14,796 24,282 Research and development 74,431 76,823 85,770 Selling, general and administrative 146,414 112,883 136,485 Intangible asset amortization 7,273 2,090 1,516 Other income (17,739) (20,291) (4,971) Provision (benefit) for income taxes (4,021) 3,830 5,025 Net income (loss) $ (18,900) $ 2,509 $ 6,275

Business Organization and Pre_2

Business Organization and Presentation (Details)	12 Months Ended
	Dec. 31, 2024 product
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of products in portfolio	3

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Reconciliation Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 102,316	$ 135,821
Restricted cash included in non-current inventory and other	469	469
Total cash, cash equivalents and restricted cash	$ 102,785	$ 136,290	$ 135,498	$ 52,590

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Impairment of long-lived asset	$ 0	$ 0	$ 0
Amount of net product sales recognized related to a change in estimate	1,300,000
Variable consideration that may be subject to dispute	$ 3,000,000
Percentage of insurance coverage gap allocated for prescription drugs under Medicare Part D	70%
Advertising expenses	$ 1,900,000	$ 500,000	$ 2,600,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Net Sales by Product (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue from External Customer [Line Items]
Total net product sales	$ 198,772	$ 192,640	$ 254,382
Fanapt® net product sales
Revenue from External Customer [Line Items]
Total net product sales	94,297	90,873	94,727
HETLIOZ® net product sales
Revenue from External Customer [Line Items]
Total net product sales	76,675	100,167	159,655
PONVORY® net product sales
Revenue from External Customer [Line Items]
Total net product sales	$ 27,800	$ 1,600	$ 0

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Schedule of Major Customers that Represented More Than 10% of Total Revenues (Details) - Customer Concentration Risk - Sales Revenue, Net	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Major Customers
Revenue, Major Customer [Line Items]
Concentration risk, percentage	69%	80%	87%
Customer A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	21%	15%
Customer B
Revenue, Major Customer [Line Items]
Concentration risk, percentage	17%	14%	11%
Customer C
Revenue, Major Customer [Line Items]
Concentration risk, percentage	16%	15%	11%
Customer D
Revenue, Major Customer [Line Items]
Concentration risk, percentage	15%	16%	13%
Customer E
Revenue, Major Customer [Line Items]
Concentration risk, percentage		20%	36%
Customer F
Revenue, Major Customer [Line Items]
Concentration risk, percentage			16%

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net (Details) - Credit Concentration Risk - Accounts Receivable	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Major Customers
Concentration Risk [Line Items]
Concentration risk, percentage	84%	90%
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	21%	34%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	27%	16%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage	18%	21%
Customer D
Concentration Risk [Line Items]
Concentration risk, percentage		19%
Customer E
Concentration Risk [Line Items]
Concentration risk, percentage	18%

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Product Return Allowance (Details) - Reserve for Product Returns - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 5,211	$ 5,144	$ 4,551
Additions	2,780	3,001	4,332
Credits/payments	(3,060)	(2,934)	(3,739)
Ending balance	$ 4,931	$ 5,211	$ 5,144

PONVORY_ Acquisition (Details)

PONVORY® Acquisition (Details) $ in Millions	Dec. 07, 2023 USD ($)
PONVORY Acquisition
Business Combination Segment Allocation [Line Items]
Total consideration	$ 104.9

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 272,226	$ 252,520
Gross Unrealized Gains	380	229
Gross Unrealized Losses	(279)	(306)
Fair Market Value	272,327	252,443
U.S. Treasury and government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	227,720	185,168
Gross Unrealized Gains	371	227
Gross Unrealized Losses	(261)	(280)
Fair Market Value	227,830	185,115
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	44,506	67,352
Gross Unrealized Gains	9	2
Gross Unrealized Losses	(18)	(26)
Fair Market Value	$ 44,497	$ 67,328

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 272,327	$ 316,211
U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	227,830	209,103
Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	44,497	107,108
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	227,830	209,103
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	227,830	209,103
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	44,497	107,108
Significant Other Observable Inputs (Level 2) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Significant Other Observable Inputs (Level 2) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	44,497	107,108
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 0	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 272,327,000	$ 316,211,000
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 0	$ 63,800,000

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Current assets
Work-in-process	$ 0	$ 27
Finished goods	1,726	1,330
Total inventory, current	1,726	1,357
Non-Current assets
Raw materials	934	934
Work-in-process	6,236	7,177
Finished goods	617	737
Total inventory, non-current	7,787	8,848
Total inventory	$ 9,513	$ 10,205

Inventory - Additional Informat

Inventory - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Inventory [Line Items]
Inventory	$ 9,513	$ 10,205
Fanapt®
Inventory [Line Items]
Inventory	2,000	3,000
HETLIOZ®
Inventory [Line Items]
Inventory	7,300	$ 7,200
PONVORY®
Inventory [Line Items]
Inventory	$ 200

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment-at Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 13,699	$ 13,218
Accumulated depreciation and amortization	(11,567)	(11,181)
Total property and equipment, net	$ 2,132	2,037
Computer and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Total property and equipment, gross	$ 6,734	6,284
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 1,497	1,496
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 5,468	$ 5,438
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	11 years

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 859	$ 920	$ 1,217

Leases - Additional Information

Leases - Additional Information (Details)	Dec. 31, 2024 ft²
Lessee, Lease, Description [Line Items]
Finance lease, term of contract	3 years
Washington, D.C. Lease
Lessee, Lease, Description [Line Items]
Leased square footage	33,534
Renewal term of lease agreement	5 years
Washington, D.C. Lease | Sublease
Lessee, Lease, Description [Line Items]
Leased square footage	9,928
London Lease
Lessee, Lease, Description [Line Items]
Leased square footage	2,880

Leases - Schedule of Lease Asse

Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Assets
Operating lease assets	$ 5,602	$ 7,103
Finance lease assets	4,943	0
Total lease assets	10,545	7,103
Liabilities
Operating lease current liabilities	$ 2,456	$ 2,398
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued liabilities	Accounts payable and accrued liabilities
Finance lease current liabilities	$ 1,814	$ 0
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued liabilities	Accounts payable and accrued liabilities
Operating lease non-current liabilities	$ 4,944	$ 7,006
Finance lease non-current liabilities	3,146	0
Total lease liabilities	$ 12,360	$ 9,404
Weighted average remaining lease term, operating leases	3 years 3 months 18 days	4 years 3 months 18 days
Weighted average discount rate, operating leases	8.20%	8.20%
Weighted average remaining lease term, finance leases	2 years 10 months 24 days	0 years
Weighted average discount rate, finance leases	6.40%	0%

Leases - Schedule of Components

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Operating lease cost:
Fixed lease cost	$ 2,223	$ 2,216	$ 2,226
Short-Term Lease, Cost	426	396	389
Finance lease cost:
Amortization	171	0	0
Interest	32	0	0
Total lease costs	$ 2,852	$ 2,612	$ 2,615

Leases - Schedule of Lease Supp

Leases - Schedule of Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,723	$ 2,659	$ 2,581
Operating cash flows from finance leases	32	0	0
Financing cash flows from finance leases	155	0	0
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	$ 5,114	$ 0	$ 0

Leases - Reconciliation of Futu

Leases - Reconciliation of Future Cash Obligations to Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Operating Leases
2025	$ 2,792
2026	2,409
2027	2,159
2028	1,099
2029	0
Thereafter	0
Total minimum lease payments	8,459
Less: amount of lease payments representing interest	(1,059)
Total lease liabilities	7,400
Less: current obligations under leases	(2,456)	$ (2,398)
Lease non-current liabilities	4,944	7,006
Finance Leases
2025	1,877
2026	1,877
2027	1,689
2028	0
2029	0
Thereafter	0
Total minimum lease payments	5,443
Less: amount of lease payments representing interest	(483)
Present value of future minimum lease payments	4,960
Less: current obligations under leases	(1,814)	0
Lease non-current liabilities	$ 3,146	$ 0

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended	251 Months Ended
	Apr. 30, 2018	Jan. 31, 2014	Dec. 31, 2018	Dec. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Fully amortized intangible assets				$ 137,894	$ 137,894
Fully amortized intangible assets, amortization				23,798	16,525
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets		$ 8,000	$ 25,000	37,500
Cumulative worldwide sales milestone	$ 250,000
Fully amortized intangible assets				33,000	33,000
Fully amortized intangible assets, amortization				17,400	15,937
Fanapt®
Finite-Lived Intangible Assets [Line Items]
Fully amortized intangible assets				27,900	27,900
Fully amortized intangible assets, amortization				$ 27,900	$ 27,900

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 137,894	$ 137,894
Accumulated Amortization	23,798	16,525
Net Carrying Amount	114,096	121,369
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,000	33,000
Accumulated Amortization	17,400	15,937
Net Carrying Amount	15,600	17,063
PONVORY®
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	104,894	104,894
Accumulated Amortization	6,398	588
Net Carrying Amount	$ 98,496	$ 104,306

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 7,273	$ 2,090	$ 1,516
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	1,463	1,502	1,516
PONVORY®
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 5,810	$ 588	$ 0

Intangible Assets - Schedule _3

Intangible Assets - Schedule of Future Intangible Asset Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 114,096	$ 121,369
2025	7,007
2026	7,007
2027	7,007
2028	7,007
2029	7,007
Thereafter	79,061
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	15,600	17,063
2025	1,463
2026	1,463
2027	1,463
2028	1,463
2029	1,463
Thereafter	8,285
PONVORY®
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	98,496	$ 104,306
2025	5,544
2026	5,544
2027	5,544
2028	5,544
2029	5,544
Thereafter	$ 70,776

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Research and development expenses	$ 11,962	$ 15,691
Consulting and other professional fees	9,226	4,404
Compensation and employee benefits	8,465	6,413
Operating lease liabilities	2,456	2,398
Finance lease liabilities	1,814	0
Royalties payable	1,665	2,409
Accounts payable and other accrued liabilities	3,498	7,145
Total accounts payable and accrued liabilities	$ 39,086	$ 38,460

Commitments and Contingencies -

Commitments and Contingencies - Fanapt - Additional Information (Details) - Fanapt® net product sales		60 Months Ended
	Dec. 31, 2014	Dec. 31, 2019
Commitments and Contingencies [Line Items]
Royalty payable percentage on net sales	6%	3%
Royalty payment period	10 years

Commitments and Contingencies_2

Commitments and Contingencies - HETLIOZ - Additional Information (Details) - HETLIOZ® - USD ($)	1 Months Ended		11 Months Ended	12 Months Ended		251 Months Ended
	Dec. 31, 2022	Jan. 31, 2014	Nov. 30, 2022	Dec. 31, 2024	Dec. 31, 2018	Dec. 31, 2024
Commitments and Contingencies [Line Items]
Acquisition of intangible assets		$ 8,000,000			$ 25,000,000	$ 37,500,000
Intangible assets capitalized						$ 33,000,000
Possible future milestone payment				$ 0
Royalty payment period				10 years
Percentage of future sublicense fees payable to third-party				mid-twenties
Non-US
Commitments and Contingencies [Line Items]
Royalty payable percentage on net sales				5%
U.S.
Commitments and Contingencies [Line Items]
Royalty payable percentage on net sales	5%		10%

Commitments and Contingencies_3

Commitments and Contingencies - Tradipitant - Additional Information (Details) - Tradipitant - USD ($) $ in Millions	12 Months Ended		153 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	low double digits
Development and milestone payments to third party			$ 5
Pre-NDA Approval Milestones
Commitments and Contingencies [Line Items]
Development and milestone payments to third party		$ 2
Sales Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 80
U.S. | Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	10
E.U. | Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 5

Commitments and Contingencies_4

Commitments and Contingencies - Imsidolimab - Additional Information (Details) - Subsequent Event - Imsidolimab $ in Millions	1 Months Ended
	Jan. 31, 2025 USD ($)
Commitments and Contingencies [Line Items]
Development and milestone payments to third party	$ 10
Additional development and milestone payments to third party	$ 5
Royalty payable percentage on net sales	10%
Future Regulatory Approval And Sales Milestones
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 35

Commitments and Contingencies_5

Commitments and Contingencies - CFTR Activators and Inhibitors - Additional Information (Details) - CFTR Activators and Inhibitors - USD ($) $ in Millions	12 Months Ended	94 Months Ended
	Dec. 31, 2024	Dec. 31, 2024
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	single-digit
Development and milestone payments to third party		$ 1.6
Development Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 11.9
Future Regulatory Approval And Sales Milestones
Commitments and Contingencies [Line Items]
Possible future milestone payment	33
Development And Milestone Payment
Commitments and Contingencies [Line Items]
Possible future milestone payment	1.1
Development And Milestone Payment | Maximum
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 3.2

Commitments and Contingencies_6

Commitments and Contingencies - VQW-765 - Additional Information (Details)	12 Months Ended
	Dec. 31, 2024
VQW-765
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	mid-teens

Commitments and Contingencies_7

Commitments and Contingencies - Other Agreements (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2024	Apr. 17, 2024	Dec. 31, 2023
Commitments and Contingencies [Line Items]
Number of rights (in shares)			1
Preferred stock, par value (in dollars per share)		$ 0.001		$ 0.001
Series A Junior Participating Preferred Stock Purchase Right, par value $0.001 per share
Commitments and Contingencies [Line Items]
Class of warrant or right, number of securities called by each warrant or right (in shares)			0.001
Preferred stock, par value (in dollars per share)			$ 0.001
Exercise price (in dollars per share)			$ 25
Ownership acquired percentage			10%
OliPass Corporation | Additional Funding Agreement Terms
Commitments and Contingencies [Line Items]
Consideration for entering into the agreement	$ 3

Commitments and Contingencies_8

Commitments and Contingencies - Purchase Commitments (Details)	12 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Agreements for clinical and marketing services, termination notice period	90 days

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Equity [Abstract]
Foreign currency translation	$ (13)	$ 21
Unrealized gain (loss) on marketable securities	87	(51)
Accumulated other comprehensive income (loss)	$ 74	$ (30)

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	Dec. 31, 2024 shares
2006 Plan and 2016 Plan | Outstanding options and RSUs granted (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares subject to outstanding options and RSUs (in shares)	7,253,587
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock authorized for issuance (in shares)	15,690,000
Number of shares of common stock available for future grant (in shares)	4,725,935

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option - Additional Information (Details)	12 Months Ended
	Dec. 31, 2024 USD ($) installment $ / shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation option awards contractual term	10 years
Vesting period for subsequent stock options granted to directors	4 years
Portion of initial stock options granted to employees that vests on employee's first anniversary	25%
Portion of initial stock options granted to employees that vests ratably over three years after completion of first year of service	75%
Number of vesting equal installments | installment	36
Options granted, weighted average fair value per share (in dollars per share) | $ / shares	$ 2.95	$ 3.53	$ 5.18
Intrinsic value of options exercised	$ 0	$ 0	$ 1,600,000
Proceeds from exercise of stock options	$ 0	$ 0	$ 734,000
Service option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Full acceleration of vesting, employee or executive officer subject to involuntary termination, period post change of control of the Company	24 months
Unrecognized compensation expenses	$ 2,900,000
Unrecognized compensation expenses, weighted average period	9 months 18 days

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Option Activity (Details) - 2006 Plan and 2016 Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Number of Shares
Beginning balance (in shares)	4,792,506
Granted (in shares)	190,514
Expired (in shares)	(379,439)
Ending balance (in shares)	4,603,581	4,792,506
Exercisable at end of period (in shares)	3,778,833
Vested and expected to vest at end of period (in shares)	4,560,920
Weighted Average Exercise Price at Grant Date
Beginning balance (in dollars per share)	$ 12.95
Granted (in dollars per share)	5.41
Expired (in dollars per share)	12.02
Ending balance (in dollars per share)	12.71	$ 12.95
Exercisable at end of period (in dollars per share)	13.73
Vested and expected to vest at end of period (in dollars per share)	$ 12.76
Weighted Average Remaining Term (Years)
Weighted Average Remaining Term	5 years 7 months 6 days	6 years
Exercisable at end of period	5 years 18 days
Vested and expected to vest at end of period	5 years 6 months 29 days
Aggregate Intrinsic Value
Beginning balance	$ 0
Ending balance	0	$ 0
Exercisable at end of period	0
Vested and expected to vest at end of period	$ 0

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU - Additional Information (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($) installment $ / shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting equal installments | installment	36
Restricted Stock Units (RSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting equal installments | installment	4
Full acceleration of vesting, employee or executive officer subject to involuntary termination, period post change of control of the Company	24 months
Unrecognized compensation expenses related to unvested RSUs | $	$ 11.4
Unrecognized compensation expenses, weighted average period	1 year 7 months 6 days
Granted (in dollars per share) | $ / shares	$ 4.48	$ 6.96	$ 11.24
Grant date fair value of common stock vested | $	$ 9	$ 11.3	$ 11.6

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity Plan (Details) - Restricted Stock Units (RSU) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Number of Shares
Beginning balance (in shares)	1,905,310
Granted (in shares)	1,652,903
Forfeited (in shares)	(132,062)
Vested (in shares)	(776,145)
Ending balance (in shares)	2,650,006	1,905,310
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 10.87
Granted (in dollars per share)	4.48	$ 6.96	$ 11.24
Forfeited (in dollars per share)	7.91
Vested (in dollars per share)	11.54
Ending balance (in dollars per share)	$ 6.82	$ 10.87

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 12,432	$ 14,040	$ 16,279
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,960	3,323	3,964
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 9,472	$ 10,717	$ 12,315

Stock-Based Compensation - Blac

Stock-Based Compensation - Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted (Details)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Expected dividend yield	0%	0%	0%
Weighted average expected volatility	50%	47%	46%
Weighted average expected term (years)	6 years 3 months 7 days	6 years 1 month 28 days	6 years 18 days
Weighted average risk-free rate	4.52%	3.89%	2.03%

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Defined contribution plan employer matching percent	50%
Defined contribution plan maximum employee contribution percent	6%
Defined contribution plan vesting period	4 years
Defined contribution plan matching amount	$ 1	$ 1	$ 1.1

Income Taxes - Summary of Domes

Income Taxes - Summary of Domestic and Foreign Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Domestic	$ (23,042)	$ 6,184	$ 11,216
Foreign	121	155	84
Income (loss) before income taxes	$ (22,921)	$ 6,339	$ 11,300

Income Taxes - Summary of Provi

Income Taxes - Summary of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current
Federal	$ 1,654	$ 2,577	$ 0
State	749	2,447	3,710
Foreign	58	91	185
Deferred
Federal	(4,760)	(2,240)	1,238
State	(1,719)	970	(111)
Foreign	(3)	(15)	3
Provision (benefit) for income taxes	$ (4,021)	$ 3,830	$ 5,025

Income Taxes - Reconciliation B

Income Taxes - Reconciliation Between Statutory Tax Rate and Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Federal tax at statutory rate	21%	21%	21%
State taxes	4.30%	5%	4.80%
Change in valuation allowance	(1.50%)	22.60%	1%
Research and development credit	12.80%	(69.30%)	(25.90%)
Orphan drug credit	1%	(4.50%)	(0.90%)
Section 162(m) limitation	(4.50%)	17.20%	9.40%
Other tax rate changes	(0.50%)	(23.40%)	1.70%
Other changes in state deferred taxes	1%	12.70%	0%
Uncertain tax positions	(5.90%)	41%	24.50%
Stock-based compensation	(7.10%)	30.20%	5.80%
Settlements	(0.10%)	2.70%	2.60%
Non-deductible items	(2.60%)	5.50%	0.30%
Other items	(0.30%)	(0.30%)	0.20%
Effective tax rate	17.60%	60.40%	44.50%

Income Taxes - Components of Ne

Income Taxes - Components of Net Deferred Tax Assets and Related Valuation Allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets
Net operating loss carryforwards	$ 5,962	$ 5,897
Stock-based compensation	3,606	4,187
Accrued expenses	2,113	1,453
Allowance for returns and credit losses	1,716	1,748
Research and development and orphan drug credit carryforwards	36,214	38,559
Capitalized research and development expenses	38,393	29,036
Other	4,537	5,037
Total deferred tax assets	92,541	85,917
Deferred tax liabilities
Intangible assets	(961)	(812)
Other	(1,253)	(1,558)
Total deferred tax liabilities	(2,214)	(2,370)
Deferred tax assets, net	90,327	83,547
Less: Valuation allowance	8,887	8,547	$ 7,136	$ 7,025
Net deferred tax assets	$ 81,440	$ 75,000

Income Taxes - Summary of Chang

Income Taxes - Summary of Changes in Tax Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Deferred Tax Assets, Valuation Allowance [Roll Forward]
Balance at Beginning of Year	$ 8,547	$ 7,136	$ 7,025
Additions	340	1,411	111
Reductions	0	0	0
Balance at End of Year	$ 8,887	$ 8,547	$ 7,136

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Taxes [Line Items]
U.S. research and development credit beginning expiration year	2031
Deferred tax assets relating to U.S. state NOL carryforwards	$ 6
Cash paid for income taxes	2.4	$ 3.6	$ 0
Unrecognized tax benefits that would impact effective tax rate	$ 18.8
Orphan drug credit beginning expiration year	2031
Research Tax Credit Carryforward
Income Taxes [Line Items]
Deferred tax assets related to U.S. federal research and development credits	$ 18.3
Orphan Drug
Income Taxes [Line Items]
Net deferred tax assets	$ 17.9
District of Columbia
Income Taxes [Line Items]
Net operating loss carryforwards beginning expiration year	2032
Other States
Income Taxes [Line Items]
Net operating loss carryforwards beginning expiration year	2034

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]
Unrecognized tax benefits at the beginning of the year	$ 18,312	$ 15,485	$ 12,935
Decrease related to prior year tax positions	(159)		(75)
Increase related to prior year tax positions		919
Increases related to current year tax positions	742	2,003	2,895
Settlements	0	0	(270)
Statute lapses	(99)	(95)	0
Unrecognized tax benefits at the end of the year	$ 18,796	$ 18,312	$ 15,485

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net income (loss)	$ (18,900)	$ 2,509	$ 6,275
Denominator:
Weighted average shares outstanding, basic (in shares)	58,149,087	57,380,975	56,461,877
Effect of dilutive securities (in shares)	0	176,936	521,294
Weighted average shares outstanding, diluted (in shares)	58,149,087	57,557,911	56,983,171
Net income (loss) per share, basic and diluted:
Basic (in dollars per share)	$ (0.33)	$ 0.04	$ 0.11
Diluted (in dollars per share)	$ (0.33)	$ 0.04	$ 0.11
Antidilutive securities excluded from calculations of diluted net income (loss) per share (in shares)	6,493,140	6,464,057	4,786,891

Segments - Narrative (Details)

Segments - Narrative (Details)	12 Months Ended
	Dec. 31, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1

Segments - Schedule of Segment

Segments - Schedule of Segment Revenue and Significant Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 198,772	$ 192,640	$ 254,382
Cost of goods sold excluding amortization	11,314	14,796	24,282
Research and development	74,431	76,823	85,770
Selling, general and administrative	146,414	112,883	136,485
Intangible asset amortization	7,273	2,090	1,516
Other income	(17,739)	(20,291)	(4,971)
Provision (benefit) for income taxes	(4,021)	3,830	5,025
Net income (loss)	(18,900)	2,509	6,275
Product Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	198,772	192,640	254,382
Cost of goods sold excluding amortization	11,314	14,796	24,282
Research and development	74,431	76,823	85,770
Selling, general and administrative	146,414	112,883	136,485
Intangible asset amortization	7,273	2,090	1,516
Other income	(17,739)	(20,291)	(4,971)
Provision (benefit) for income taxes	(4,021)	3,830	5,025
Net income (loss)	$ (18,900)	$ 2,509	$ 6,275