Vanda Pharmaceuticals Inc (VNDA) saw its loss narrow to $0.43 million, or $0.01 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $9.46 million, or $0.22 a share. On an adjusted basis, net profit for the quarter was $4.61 million, when compared with net loss $4.46 million in the last year period.

Revenue during the quarter surged 35.77 percent to $38.48 million from $28.34 million in the previous year period. Gross margin for the quarter expanded 480 basis points over the previous year period to 81.84 percent. Operating margin for the quarter stood at negative 1.70 percent as compared to a negative 33.66 percent for the previous year period.

Operating loss for the quarter was $0.65 million, compared with an operating loss of $9.54 million in the previous year period.

"This quarter marks a significant milestone for Vanda, having secured long-term exclusivity for Fanapt and demonstrated our ability to grow our commercial assets and expand our pipeline of products," said Mihael H. Polymeropoulos, M.D., Vanda’s president and chief executive officer.

For financial year 2016, Vanda Pharmaceuticals Inc expects revenue to be in the range of $143 million to $153 million.

Days sales outstanding went down to 38 days for the quarter compared with 51 days for the same period last year.

Days inventory outstanding has decreased to 6 days for the quarter compared with 62 days for the previous year period.