0001628280-23-002857 | 10-K | XBRL Viewer | Vanda Pharmaceuticals INC

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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2022	Feb. 02, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
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
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	VNDA
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 601.3
Entity Common Stock, Shares Outstanding		56,785,264
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Specified portions of the registrant’s proxy statement with respect to the registrant’s 2023 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, 2022, are incorporated by reference into Part III of this Form 10-K.
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001347178

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Baltimore, Maryland

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 135,029	$ 52,071
Marketable securities	331,830	380,742
Accounts receivable, net	33,512	32,467
Inventory	1,194	1,025
Prepaid expenses and other current assets	17,727	11,996
Total current assets	519,292	478,301
Property and equipment, net	2,573	3,113
Operating lease right-of-use assets	8,400	9,272
Intangible assets, net	18,565	20,081
Deferred tax assets	74,039	74,878
Non-current inventory and other	11,378	8,147
Total assets	634,247	593,792
Current liabilities:
Accounts payable and accrued liabilities	45,551	34,438
Product revenue allowances	45,885	39,981
Total current liabilities	91,436	74,419
Operating lease non-current liabilities	8,813	10,055
Other non-current liabilities	6,800	4,390
Total liabilities	107,049	88,864
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, and no shares issued or outstanding at December 31, 2022 and 2021, respectively	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 56,783,764 and 55,900,855 shares issued and outstanding at December 31, 2022 and 2021, respectively	57	56
Additional paid-in capital	686,235	669,223
Accumulated other comprehensive loss	(1,193)	(175)
Accumulated deficit	(157,901)	(164,176)
Total stockholders’ equity	527,198	504,928
Total liabilities and stockholders’ equity	$ 634,247	$ 593,792

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
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)	56,783,764	55,900,855
Common stock, shares outstanding (in shares)	56,783,764	55,900,855

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues:
Net product sales	$ 254,382	$ 268,682	$ 248,168
Total revenues	254,382	268,682	248,168
Operating expenses:
Cost of goods sold excluding amortization	24,282	25,629	23,364
Research and development	85,770	75,363	55,577
Selling, general and administrative	136,485	124,047	140,510
Intangible asset amortization	1,516	1,478	1,478
Total operating expenses	248,053	226,517	220,929
Income from operations	6,329	42,165	27,239
Other income	4,971	199	4,416
Income before income taxes	11,300	42,364	31,655
Provision for income taxes	5,025	9,212	8,318
Net income	$ 6,275	$ 33,152	$ 23,337
Net income per share:
Basic (in dollars per share)	$ 0.11	$ 0.60	$ 0.43
Diluted (in dollars per share)	$ 0.11	$ 0.58	$ 0.42
Weighted average shares outstanding:
Basic (in shares)	56,461,877	55,548,122	54,427,683
Diluted (in shares)	56,983,171	56,921,836	55,190,802

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 6,275	$ 33,152	$ 23,337
Other comprehensive income (loss):
Net foreign currency translation gain (loss)	(39)	(49)	68
Change in net unrealized gain (loss) on marketable securities	(1,271)	(472)	(102)
Tax benefit on other comprehensive income (loss)	292	107	24
Other comprehensive loss, net of tax	(1,018)	(414)	(10)
Comprehensive income	$ 5,257	$ 32,738	$ 23,327

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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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, 2019		53,549,612
Beginning balance at Dec. 31, 2019	$ 410,945	$ 54	$ 631,307	$ 249	$ (220,665)
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)		1,315,480
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	5,634	$ 1	5,633
Stock-based compensation expense	13,360		13,360
Net income	23,337				23,337
Other comprehensive loss, net of tax	(10)			(10)
Ending balance (in shares) at Dec. 31, 2020		54,865,092
Ending balance at Dec. 31, 2020	453,266	$ 55	650,300	239	(197,328)
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)		1,035,763
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	3,550	$ 1	3,549
Stock-based compensation expense	15,374		15,374
Net income	33,152				33,152
Other comprehensive loss, net of tax	$ (414)			(414)
Ending balance (in shares) at Dec. 31, 2021	55,900,855	55,900,855
Ending 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	6,275				6,275
Other comprehensive loss, net of tax	$ (1,018)			(1,018)
Ending balance (in shares) at Dec. 31, 2022	56,783,764	56,783,764
Ending balance at Dec. 31, 2022	$ 527,198	$ 57	$ 686,235	$ (1,193)	$ (157,901)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net income	$ 6,275	$ 33,152	$ 23,337
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	1,217	1,363	1,386
Stock-based compensation	16,279	15,374	13,360
Amortization of premiums and accretion of discounts on marketable securities	(2,963)	1,649	179
Gains on sales of marketable securities	0	(12)	(229)
Intangible asset amortization	1,516	1,478	1,478
Deferred income taxes	1,130	6,745	6,189
Other non-cash adjustments, net	2,456	1,728	1,758
Changes in operating assets and liabilities:
Accounts receivable	(1,089)	(2,469)	(3,767)
Prepaid expenses and other assets	(6,136)	(1,247)	4,068
Inventory	(4,479)	(2,233)	(2,876)
Accounts payable and other liabilities	11,793	3,040	3,759
Product revenue allowances	5,985	5,646	3,133
Net cash provided by operating activities	31,984	64,214	51,775
Cash flows from investing activities
Purchases of property and equipment	(679)	(552)	(1,795)
Purchases of marketable securities	(349,258)	(420,461)	(346,622)
Sales and maturities of marketable securities	399,862	344,317	306,918
Net cash provided by (used in) investing activities	49,925	(76,696)	(41,499)
Cash flows from financing activities
Proceeds from exercise of stock options	734	3,550	5,634
Net cash provided by financing activities	734	3,550	5,634
Effect of exchange rate changes on cash, cash equivalents and restricted cash	265	(91)	53
Net change in cash, cash equivalents and restricted cash	82,908	(9,023)	15,963
Cash, cash equivalents and restricted cash
Beginning of year	52,590	61,613	45,650
End of year	$ 135,498	$ 52,590	$ 61,613

Business Organization and Presentation	12 Months Ended
Business Organization and Presentation	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Presentation	Business Organization and Presentation Business Organization Vanda Pharmaceuticals Inc. (the Company) 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 and operates in one reporting segment. The Company’s commercial portfolio is currently comprised of two products, HETLIOZ® for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and nighttime sleep disturbances in Smith-Magenis Syndrome (SMS) and Fanapt® for the treatment of schizophrenia. HETLIOZ® is the first product approved by the United States Food and Drug Administration (FDA) for patients with Non-24 and patients with SMS. In addition, the Company has a number of drugs in development, including: •HETLIOZ® (tasimelteon) for the treatment of jet lag disorder, insomnia, delayed sleep phase disorder (DSPD), sleep disturbances in autism spectrum disorder (ASD) and pediatric Non-24; •Fanapt® (iloperidone) for the treatment of bipolar I disorder and Parkinson’s disease psychosis and a long acting injectable (LAI) formulation for the treatment of schizophrenia; •Tradipitant (VLY-686), a small molecule neurokinin-1 (NK-1) receptor antagonist, for the treatment of gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia; •VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of 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 performance anxiety and psychiatric disorders; •VHX-896, the active metabolite of iloperidone; and •Antisense oligonucleotide (ASO) molecules. Basis of Presentation The accompanying consolidated financial statements includes 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 Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

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 at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates.

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 leases for office space 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:


	December 31,
(in thousands)	2022		2021
Cash and cash equivalents	$	135,029	$	52,071

Restricted cash included in non-current inventory and other	469		519
Total cash, cash equivalents and restricted cash	$	135,498	$	52,590

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 expiry risk by evaluating current and future product demand relative to product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. 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.

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 of the related product patents. For intangible assets related to HETLIOZ®, the estimated useful life is through March 2035, which is the estimated economic useful life of the related product patents. Intangible assets related Fanapt® have been fully amortized on a straight-line basis to November 2016. The useful life estimate for Fanapt® was based on the market participant methodology prescribed by Accounting Standards Codification (ASC) 805, and therefore does 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. In the case 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 leases. For existing office leases as of the adoption date of ASC 842, Leases, on January 1, 2019, executory costs are excluded from lease expense, which is consistent with the Company’s accounting under ASC 840, Leases. For all office leases entered into after January 1, 2019, executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices.

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, such as identifiable intangible 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, 2022, 2021 and 2020.

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 add taxes, and usage-based taxes are excluded from revenues.

The Company’s net product sales consist of sales of HETLIOZ® and Fanapt®. Net sales by product for the years ended December 31, 2022, 2021 and 2020 were as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
HETLIOZ® net product sales	$	159,655	$	173,536	$	160,686
Fanapt® net product sales	94,727		95,146		87,482
Total net product sales	$	254,382	$	268,682	$	248,168

HETLIOZ® is available in the United States (U.S.) for distribution through a limited number of specialty pharmacies, and is not available in retail pharmacies. Specialty pharmacy customers include Accredo (a subsidiary of Express Scripts) and

OptumRx (a subsidiary of UnitedHealth Group). Fanapt® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. Wholesaler customers include AmerisourceBergen Drug Corporation, Cardinal Health, Inc. and McKesson Corporation. The Company invoices and records revenue when its customers, specialty pharmacies and wholesalers, 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 sells HETLIOZ® in Germany and has a distribution agreement for the commercialization of Fanapt® in Israel. 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, 2022, 2021 and 2020:


	Year Ended December 31,
Percent of Net Product Sales	2022		2021		2020
Distributor A	36	%	40	%	43	%
Distributor B	16	%	18	%	19	%
Distributor C	13	%	12	%	12	%
Distributor D	11	%	10	%	11	%
Distributor E	11	%	11	%	10	%

The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2022 and 2021:


	December 31,
Percent of Accounts Receivable, Net	2022		2021
Distributor A	18	%	31	%
Distributor B	13	%	*
Distributor C	20	%	17	%
Distributor D	16	%	16	%
Distributor E	14	%	14	%

*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 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.

Reserves for variable consideration are classified as product revenue allowances on the Consolidated Balance Sheets, with the exception of prompt-pay discounts that 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, and product returns that are resolved during the product expiry period specified in the customer contract. The Company currently records sales allowances for the following:

•Prompt-pay: Specialty pharmacies and wholesalers are offered discounts for prompt payment. The Company expects that the specialty pharmacies and wholesalers 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 new 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. The allowance for rebates is based on statutory or contracted discount rates and estimated patient utilization.

•Chargebacks: Chargebacks are discounts that occur when contracted indirect customers purchase directly from specialty pharmacies and wholesalers. 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 specialty pharmacy or wholesaler, in turn, charges back the difference between the price initially paid by the specialty pharmacy or wholesaler and the discounted price paid to the specialty pharmacy or wholesaler by the contracted customer.

•Medicare Part D Coverage Gap: 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. Vanda accounts for the Medicare Part D coverage gap using a point of sale model. Estimates for expected Medicare Part D coverage gap are based in part on historical activity and, where available, actual and pending prescriptions when the Company has validated the insurance benefits.

•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-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment 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 goods to be resalable. There was no right of return asset as of December 31, 2022 or 2021. The following table summarizes activity for product returns as of and for the years ended December 31, 2022, 2021 and 2020, all of which relates to sales of Fanapt®:


(in thousands)	Reserve for Product Returns
Balances at December 31, 2019	$	6,120
Additions	3,844
Credits/payments	(5,266)
Balances at December 31, 2020	4,698
Additions	2,870
Credits/payments	(3,017)
Balances at December 31, 2021	4,551
Additions	4,332
Credits/payments	(3,739)
Balances at December 31, 2022	$	5,144

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, milestone payments, 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 related to 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 included 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 $2.6 million, $6.7 million and $12.6 million for the years ended December 31, 2022, 2021 and 2020, 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, 2022, 2021 and 2020, 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 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, 2022, 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.

Segment and Geographic Information

The Company operates in one reporting segment and, accordingly, no segment disclosures are presented herein. Foreign sales were not material for each of the years ended December 31, 2022, 2021 and 2020.

Recent Accounting Pronouncements

There are no recent accounting pronouncements that are expected to have a material impact on the Company’s consolidated financial statements or related disclosures.

Marketable Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2022, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	178,351	$	—	$	(1,181)	$	177,170
Corporate debt	155,017		14		(371)		154,660

Total marketable securities	$	333,368	$	14	$	(1,552)	$	331,830

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2021, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	195,076	$	1	$	(358)	$	194,719
Corporate debt	185,933		113		(23)		186,023

Total marketable securities	$	381,009	$	114	$	(381)	$	380,742

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

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, 2022 and 2021 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, 2022, as follows:


			Fair Value Measurement as of December 31, 2022 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	177,170	$	177,170	$	—	$	—
Corporate debt	154,660		—		154,660		—

Total assets measured at fair value	$	331,830	$	177,170	$	154,660	$	—

The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2021, as follows:


			Fair Value Measurement as of December 31, 2021 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	194,719	$	194,719	$	—	$	—
Corporate debt	186,023		—		186,023		—

Total assets measured at fair value	$	380,742	$	194,719	$	186,023	$	—

Total assets measured at fair value as of December 31, 2022 and 2021 include no 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventory

InventoryInventory consisted of the following as of December 31, 2022 and 2021:


(in thousands)	December 31, 2022		December 31, 2021
Current assets
Work-in-process	$	23	$	30
Finished goods	1,171		995
Total inventory, current	$	1,194	$	1,025
Non-Current assets
Raw materials	$	1,043	$	2,143
Work-in-process	8,212		3,934
Finished goods	1,041		1,150
Total inventory, non-current	10,296		7,227
Total inventory	$	11,490	$	8,252

Property and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2022 and 2021:


(in thousands)	Estimated Useful Life (Years)	December 31, 2022		December 31, 2021
Computer and other equipment	3	$	5,941	$	5,481
Furniture and fixtures	5 - 7	1,634		1,546
Leasehold improvements	5 - 11	5,417		5,463
Total property and equipment, gross		12,992		12,490
Accumulated depreciation and amortization		(10,419)		(9,377)
Total property and equipment, net		$	2,573	$	3,113

Depreciation expense was $1.2 million, $1.4 million and $1.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

The Company’s long-term leases primarily include operating leases and subleases for office space in Washington, D.C. and London, England. The Company recognized ROU assets and lease liabilities related to fixed payments for these long-term operating leases in its Consolidated Balance Sheets as of December 31, 2022 and 2021. 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, 2022, 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.

The following is a summary of the Company’s ROU assets and operating lease liabilities as of December 31, 2022 and 2021:


(in thousands)	Classification on the Balance Sheet	December 31, 2022			December 31, 2021
Assets
Operating lease assets	Operating lease right-of-use assets	$	8,400		$	9,272

Liabilities
Operating lease current liabilities	Accounts payable and accrued liabilities	$	2,328		$	2,311
Operating lease non-current liabilities	Operating lease non-current liabilities	8,813			10,055
Total lease liabilities		$	11,141		$	12,366

Weighted average remaining lease term		5.2			6.2
Weighted average discount rate		8.2		%	8.1		%

The Company recognized operating lease cost of $2.2 million, $2.3 million and $2.3 million and short-term operating lease cost of $0.4 million for each of the years ended December 31, 2022, 2021 and 2020, respectively. The Company also recognized $1.4 million, $1.4 million and $1.5 million, respectively, of expense related to non-lease elements, such as building maintenance services and utilities, and executory costs associated with the operating leases.

Cash paid for amounts included in the measurement of operating lease liabilities is included in operating cash flows and was $2.6 million, $2.3 million and $2.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.

The table below reconciles the Company’s future cash obligations to operating lease liabilities recorded on the balance sheet as of December 31, 2022:



(in thousands)	Operating Leases
2023	$	2,647
2024	2,714
2025	2,784
2026	2,407
2027	2,159
Thereafter	1,099
Total minimum lease payments	13,810
Less: amount of lease payments representing interest	(2,669)
Present value of future minimum lease payments	11,141
Less: current obligations under leases	(2,328)
Operating lease non-current liabilities	$	8,813

Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible AssetsHETLIOZ®. In January 2014, the Company announced that the FDA had approved the New Drug Application (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 the HETLIOZ® and capitalized as an intangible asset and is being amortized on a straight-line basis over the estimated economic useful life of the related product patents.

The following is a summary of the Company’s intangible assets as of December 31, 2022:


		December 31, 2022
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	March 2035	$	33,000	$	14,435	$	18,565

The following is a summary of the Company’s intangible assets as of December 31, 2021:


		December 31, 2021
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	July 2035	$	33,000	$	12,919	$	20,081

As of December 31, 2022 and 2021, 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, 2022, 2021 and 2020 was as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
HETLIOZ®	$	1,516	$	1,478	$	1,478

The following is a summary of the future intangible asset amortization schedule as of December 31, 2022:


(in thousands)	Total		2023		2024		2025		2026		2027		Thereafter
HETLIOZ®	$	18,565	$	1,516	$	1,516	$	1,516	$	1,516	$	1,516	$	10,985

Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2022 and 2021:


(in thousands)	December 31, 2022		December 31, 2021
Research and development expenses	$	9,474	$	10,082
Consulting and other professional fees	9,241		8,732
Compensation and employee benefits	6,839		6,515
Royalties payable	4,979		5,873
Operating lease liabilities	2,328		2,311

Accounts payable and other accrued liabilities	12,690		925
Total accounts payable and accrued liabilities	$	45,551	$	34,438

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2022
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. 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, 2022, 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 8). 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 in the U.S. decreased from 10% to 5% in December 2022. This U.S. royalty will end 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®. 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. 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, 2022, the Company has paid Lilly $3.0 million in upfront fees and development milestones. As of December 31, 2022, remaining milestone obligations include a $2.0 million development milestone due upon the filing of the first application for marketing authorization for tradipitant in either the U.S. or European Union (E.U.), $10.0 million and $5.0 million 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. 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 under the license agreement, 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, 2022, the Company has paid UCSF $1.6 million in upfront fees and development milestones. As of December 31, 2022, 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 but 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; however, Novartis is eligible to receive tiered-royalties on net sales at percentage rates up to the mid-teens. Other Agreements In September 2022, the Company entered into an agreement with OliPass Corporation (OliPass) to jointly develop a set of antisense oligonucleotide (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 during the three months ended September 30, 2022. The Company will fund the research and development activities and has the option to license jointly developed intellectual property upon successful development. Purchase Commitments In the 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 are not material. 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.

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

The accumulated balances related to each component of other comprehensive loss, net of taxes, were as follows for the years ended December 31, 2022 and 2021:


(in thousands)	December 31, 2022		December 31, 2021
Foreign currency translation	$	(7)	$	32
Unrealized loss on marketable securities	(1,186)		(207)
Accumulated other comprehensive loss	$	(1,193)	$	(175)

Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

As of December 31, 2022, there were 6,147,756 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 11,890,000 shares of common stock authorized for issuance under the 2016 Plan, 4,257,565 shares of which remained available for future grant as of December 31, 2022.

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. Certain service option awards granted to employees and executive officers provide for partial acceleration of vesting if the employee or executive officer is subject to an involuntary termination, and full acceleration of vesting if the employee or executive officer 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, 2022, $7.1 million of unrecognized compensation costs related to unvested service option awards are expected to be recognized over a weighted average period of 1.2 years. No option awards are classified as a liability as of December 31, 2022.

A summary of option activity under the Plans for the year ended December 31, 2022 is as follows:


(in thousands, except for share and per share amounts)	Number of Shares	Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2021	3,721,148	$	14.16	5.77	$	11,327
Granted	745,028	11.10

Expired	(14,000)	11.95
Exercised	(219,966)	3.34			1,579
Outstanding at December 31, 2022	4,232,210	14.19		5.81	—
Exercisable at December 31, 2022	2,969,040	14.43		4.62	—
Vested and expected to vest at December 31, 2022	4,104,620	14.23		5.72	—

The weighted average grant-date fair value of options granted was $5.18, $8.91 and $5.53 per share for the years ended December 31, 2022, 2021 and 2020, respectively. The total intrinsic value of options exercised was $1.6 million, $4.1 million and $2.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. Proceeds from the exercise of stock options amounted to $0.7 million, $3.6 million and $5.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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 vest in four equal annual installments provided that the employee remains employed with the Company. Certain service RSUs granted to employees and executive officers provide for accelerated vesting if the employee or executive officer is subject to an involuntary termination within 24 months after a change in control. Annual service RSUs granted to directors vest on the first anniversary of the grant date and provide for accelerated vesting if there is a change in control of the Company.

As of December 31, 2022, $19.1 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, 2022.

A summary of RSU activity for the Plans for the year ended December 31, 2022 is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2021	1,764,740	$	17.27
Granted	944,374	11.24
Forfeited	(130,625)	14.48
Vested	(662,943)	17.49
Unvested at December 31, 2022	1,915,546	14.41

The weighted average grant-date fair value of RSUs granted was $11.24, $19.57 and $11.28 per share for the years ended December 31, 2022, 2021 and 2020, respectively. The total fair value of the RSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $11.6 million, $9.1 million, and $9.6 million, respectively.

Stock-Based Compensation Expense

Stock-based compensation expense recognized for the years ended December 31, 2022, 2021 and 2020 comprised of the following:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Research and development	$	3,964	$	3,955	$	3,804
Selling, general and administrative	12,315		11,419		9,556
Total stock-based compensation expense	$	16,279	$	15,374	$	13,360

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, 2022, 2021 and 2020 were as follows:


	Year Ended December 31,
	2022		2021		2020
Expected dividend yield	—	%	—	%	—	%
Weighted average expected volatility	46	%	46	%	51	%
Weighted average expected term (years)	6.05		5.98		6.07
Weighted average risk-free rate	2.03	%	0.75	%	1.14	%

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit PlanThe 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 $1.1 million, $1.0 million and $0.9 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

The following is a summary of the domestic and foreign components of income before income taxes for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Domestic	$	11,216	$	42,221	$	31,667
Foreign	84		143		(12)
Total income before income taxes	$	11,300	$	42,364	$	31,655

The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Current
Federal	$	—	$	—	$	—
State	3,710		2,200		2,061
Foreign	185		267		68
Deferred
Federal	1,238		6,604		6,076
State	(111)		119		155
Foreign	3		22		(42)
Provision for income taxes	$	5,025	$	9,212	$	8,318

The following is reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
	2022		2021		2020
Federal tax at statutory rate	21.0	%	21.0	%	21.0	%
State taxes	4.8	%	2.3	%	2.6	%
Change in valuation allowance	1.0	%	(0.1)	%	(3.5)	%
Research and development credit	(25.9)	%	(6.5)	%	(5.4)	%
Orphan drug credit	(0.9)	%	(0.1)	%	(1.3)	%
Section 162(m) limitation	9.4	%	2.6	%	1.7	%
Other tax rate changes	1.7	%	(0.2)	%	0.2	%
Uncertain tax positions	24.5	%	4.0	%	4.7	%
Stock-based compensation	5.8	%	(1.8)	%	5.1	%
Settlements	2.6	%	—	%	—	%
Other items	0.5	%	0.5	%	1.2	%
Effective tax rate	44.5	%	21.7	%	26.3	%

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, 2022 and 2021.


(in thousands)	December 31, 2022		December 31, 2021
Deferred tax assets
Net operating loss carryforwards	$	13,746	$	35,509
Stock-based compensation	4,930		4,846
Accrued expenses	1,469		1,409
Allowance for returns and credit losses	1,560		1,142
Research and development and orphan drug credit carryforwards	42,402		39,975
Capitalized research and development expenses	16,990		—
Other	3,798		3,081
Total deferred tax assets	84,895		85,962
Deferred tax liabilities
Intangible assets	(1,924)		(1,919)
Other	(1,796)		(2,140)
Total deferred tax liabilities	(3,720)		(4,059)
Deferred tax assets, net	81,175		81,903
Less: Valuation allowance	7,136		7,025
Net deferred tax assets	$	74,039	$	74,878

The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2022, 2021 and 2020:


(in thousands)	Balance at Beginning of Year		Additions		Reductions		Balance at End of Year
Year Ended
December 31, 2022	$	7,025	$	111	$	—	$	7,136
December 31, 2021	7,051		—		(26)		7,025
December 31, 2020	8,155		—		(1,104)		7,051

The Company has NOL and other tax credit carryforwards in several jurisdictions. As of December 31, 2022, the Company has $6.1 million of deferred tax assets relating to U.S. federal NOL carryforwards, along with deferred tax assets of $17.9 million and $24.5 million related to U.S. federal research and development credits and orphan drug credits, respectively. These tax attributes will begin to expire in 2035, 2024 and 2030, respectively. In addition, the Company has $7.7 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 2029.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Unrecognized tax benefits at the beginning of the year	$	12,935	$	11,233	$	9,741
Increases (decreases) related to prior year tax positions	(75)		122		(121)
Increases related to current year tax positions	2,895		1,580		1,613
Settlements	(270)		—		—
Unrecognized tax benefits at the end of the year	$	15,485	$	12,935	$	11,233

The amount of uncertain tax benefits that, if recognized, would impact the effective tax rate is $15.5 million. Unrecognized tax benefits are not expected to change materially over the next 12 months. Generally, the tax years 2019 through 2021 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. As of December 31, 2022, the Company is not under examination by any federal or state tax jurisdiction.

Certain tax attributes of the Company, including NOLs and credits, would be subject to a limitation should an ownership change as defined under the Internal Revenue Code of 1986, as amended (IRC), Section 382, occur. The limitations resulting from a change in ownership could affect the Company’s ability to utilize its NOLs and credit carryforward (tax attributes). Ownership changes occurred in the years ending December 31, 2014 and December 31, 2008. The Company believes that the ownership changes in 2014 and 2008 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Earnings per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings per Share

Basic earnings per share (EPS) is calculated by dividing the net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income 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.

The following table presents the calculation of basic and diluted net income per share of common stock for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
(in thousands, except for share and per share amounts)	2022		2021		2020
Numerator:
Net income	$	6,275	$	33,152	$	23,337
Denominator:
Weighted average shares outstanding, basic	56,461,877		55,548,122		54,427,683
Effect of dilutive securities	521,294		1,373,714		763,119
Weighted average shares outstanding, diluted	56,983,171		56,921,836		55,190,802
Net income per share, basic and diluted:
Basic	$	0.11	$	0.60	$	0.43
Diluted	$	0.11	$	0.58	$	0.42
Antidilutive securities excluded from calculations of diluted net income per share	4,786,891		2,176,944		3,407,409

Legal Matters	12 Months Ended
Legal Matters	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal MattersFanapt®. In 2014 and 2015, Roxane Laboratories, Inc. (Roxane) and its affiliates, West-Ward Pharmaceuticals International Limited and West-Ward Pharmaceuticals Corp (West-Ward), Inventia Healthcare Pvt. Ltd. (Inventia), Lupin Ltd. and Lupin Pharmaceuticals, Inc. (Lupin), Taro Pharmaceuticals USA, Inc. and Taro Pharmaceutical Industries, Ltd. (Taro), and Apotex Inc. and Apotex Corp. (Apotex) (collectively, the Fanapt® Defendants) each submitted an Abbreviated New Drug Application (ANDA) to the FDA seeking approval to market generic versions of Fanapt® prior to the expiration of certain of the Company’s patents covering Fanapt®, including U.S. Patent No. 8,586,610 (‘610 Patent) and U.S. Patent No. 9,138,432 (‘432 Patent). In response, the Company filed separate lawsuits in 2014 and 2015 against each of the Fanapt® Defendants in the U.S. District Court for the District of Delaware (Delaware District Court) for patent infringement. In August 2016, the Delaware District Court ruled in the Company’s favor, permanently enjoining Roxane from manufacturing, using, selling, offering to sell, distributing or importing any generic iloperidone product described in Roxane’s ANDA until the expiration of the ‘610 Patent in November 2027, or May 2028 if the Company obtains pediatric exclusivity. This ruling was affirmed on appeal by the U.S Court of Appeals for the Federal Circuit (Federal Circuit) in April 2018. West-Ward, having replaced Roxane as defendant following the acquisition of Roxane by West-Ward’s parent company, Hikma Pharmaceuticals PLC (Hikma), petitioned the U.S. Supreme Court for a writ of certiorari, which was denied in January 2020. The Company entered into separate license agreements with each of Taro, Apotex and Lupin resolving these lawsuits in October 2016, December 2016 and July 2020, respectively. The license agreements grant Taro, Apotex and Lupin non-exclusive licenses to manufacture and commercialize a version of Fanapt® in the U.S. effective as of the expiration of the ‘610 Patent or earlier under certain limited circumstances. The Company entered into a license agreement with Hikma regarding the ‘432 Patent in September 2022. The license agreement grants Hikma a non-exclusive license to manufacture and commercialize a version of Fanapt® in the U.S. effective as of the expiration of the ‘610 Patent. The Company entered into a confidential stipulation with Inventia regarding any potential launch of its generic version of Fanapt®, but the Company’s lawsuit against Inventia regarding the ‘610 and ‘432 Patents remains pending. HETLIOZ®. Between April 2018 and March 2021, the Company filed numerous Hatch-Waxman lawsuits in the Delaware District Court against Teva Pharmaceuticals USA, Inc. (Teva), MSN Pharmaceuticals Inc. and MSN Laboratories Private Limited (MSN) and Apotex (collectively 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. In January 2022, the Company entered into a license agreement with MSN and Impax Laboratories LLC (Impax) resolving the lawsuits against MSN. The license agreement grants MSN and Impax a non-exclusive license to manufacture and commercialize MSN’s 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. MSN and Impax may enter the market earlier under certain limited circumstances. The consolidated lawsuits against the remaining HETLIOZ® Defendants were tried in March 2022. On December 13, 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. On December 14, 2022, Vanda appealed the Delaware District Court’s decision to the Federal Circuit and requested an injunction prohibiting market entry by Teva and Apotex while the appeal is pending. On December 16, 2022, the Federal Circuit granted a temporary injunction to prohibit market entry by Teva and Apotex until the Federal Circuit entered its order on the Company’s motion for a stay pending appeal. On December 28, 2022, the Federal Circuit denied the Company’s request for an injunction, which therefore lifted the stay pending appeal. The oral argument for the Company’s appeal is scheduled for March 14, 2023. On December 27, 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 has 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. On December 28, 2022, the Company filed a similar lawsuit against Apotex in the U.S. District Court for the Southern District of Florida asserting the same claims and seeking the same relief against Apotex as are asserted and sought in the litigation pending before the NJ District Court. 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 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 ANDA for its generic version of HETLIOZ® capsules under the Administrative Procedure Act, 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; additionally, the generic drug must have the same conditions of use as the listed drug. The Company believes that Teva’s approved labeling does not comply with these 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 shipments or sales of its generic HETLIOZ® product. In February 2023, Teva filed a motion with the DC District Court to intervene as a defendant in the lawsuit. Vanda did not oppose Teva’s motion. Other Matters. In February 2019, a securities class action, Gordon v. Vanda Pharmaceuticals Inc., was filed in the U.S. District Court for the Eastern District of New York (New York District Court) naming the Company and certain of its officers as defendants. An amended complaint was filed in July 2019. The amended complaint, filed on behalf of a purported stockholder, asserted claims on behalf of a putative class of all persons who purchased the Company’s publicly traded securities between November 4, 2015 and February 11, 2019 (the Class), for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The amended complaint alleges that the defendants made false and misleading statements and/or omissions regarding Fanapt®, HETLIOZ® and the Company’s interactions with the FDA regarding tradipitant between November 3, 2015 and February 11, 2019. In March 2020, the Company filed a motion to dismiss the complaint. In March 2021, the motion to dismiss was granted in part and denied in part. In May 2022, the parties executed a stipulation of settlement for $11.5 million to resolve the claims asserted with no admission of wrongdoing by any defendant. The settlement was preliminarily approved by the New York District Court in September 2022. Payment of the settlement amount was made by the Company’s insurers into an escrow account and is recognized in the Consolidated Balance Sheet as of December 31, 2022 in prepaid and other current assets and accounts payable and accrued liabilities. In January 2023, the New York District Court fully and finally approved the settlement and issued its final judgment and order of dismissal with prejudice, thereby resolving the class action with respect to all plaintiffs other than three individuals who requested exclusion from the Class. The settlement is not expected to have a material adverse effect on the Company’s business, results of operations or financial condition. In April 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to produce, as required by the Freedom of Information Act (FOIA), certain records relating to its denial of the Company’s supplemental NDA for HETLIOZ® in the treatment of jet lag disorder. The Company has repeatedly attempted to obtain these records from the FDA pursuant to a FOIA request submitted by the Company in December of 2019, but the FDA has refused to provide them, claiming an exemption under FOIA. The Company does not believe that the exemption claimed by the FDA applies to the records requested. In April 2022, the Company filed a lawsuit in the U.S. District Court for the District of Maryland (the 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. The Company seeks to, among other things, have the MD District Court set aside the definitions of “line extension” and “new formulation” in the Rule, declare the Rule unlawful and void and enjoin CMS from enforcing, applying, or implementing the Rule as applied to require the Company to treat these products as line extensions. In May 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to produce, as required by FOIA, certain records relating to 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. The Company attempted to obtain these records from the FDA pursuant to a FOIA request submitted by the Company in January of 2020, but the FDA has failed to respond to the request. 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. 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 nondiscretionary obligations under the FDCA and its implementing regulations: an obligation to publish a notice of an opportunity for a hearing on Vanda’s supplemental New Drug Application (sNDA) 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 October 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to produce, as required by FOIA, documents responsive to the Company’s request seeking communications external to the FDA from 11 specified FDA employees relating to tradipitant. The FDA has failed to respond and disclose the requested documents within the statutory timeframe. 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 November 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to produce, as required by FOIA, documents responsive to the Company’s request seeking communications within the FDA relating to tradipitant. The FDA has failed to respond and disclose the requested documents within the statutory timeframe. 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 December 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to produce, as required by FOIA, documents responsive to the Company’s request seeking communications external to the FDA from specified FDA employees relating to HETLIOZ®. The FDA has failed to respond and disclose the requested documents within the statutory timeframe. 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 December 2022, the Company filed a lawsuit in the DC District Court against the FDA to compel the FDA to produce, as required by FOIA, documents responsive to the Company’s request seeking communications within the FDA relating to HETLIOZ®. The FDA has failed to respond and disclose the requested documents within the statutory timeframe. 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.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Business Organization	Business Organization Vanda Pharmaceuticals Inc. (the Company) 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 and operates in one reporting segment. The Company’s commercial portfolio is currently comprised of two products, HETLIOZ® for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and nighttime sleep disturbances in Smith-Magenis Syndrome (SMS) and Fanapt® for the treatment of schizophrenia. HETLIOZ® is the first product approved by the United States Food and Drug Administration (FDA) for patients with Non-24 and patients with SMS. In addition, the Company has a number of drugs in development, including: •HETLIOZ® (tasimelteon) for the treatment of jet lag disorder, insomnia, delayed sleep phase disorder (DSPD), sleep disturbances in autism spectrum disorder (ASD) and pediatric Non-24; •Fanapt® (iloperidone) for the treatment of bipolar I disorder and Parkinson’s disease psychosis and a long acting injectable (LAI) formulation for the treatment of schizophrenia; •Tradipitant (VLY-686), a small molecule neurokinin-1 (NK-1) receptor antagonist, for the treatment of gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia; •VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of 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 performance anxiety and psychiatric disorders; •VHX-896, the active metabolite of iloperidone; and •Antisense oligonucleotide (ASO) molecules.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements includes 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 at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted CashFor 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 leases for office space at the Company’s Washington, D.C. headquarters.
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.
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 expiry risk by evaluating current and future product demand relative to product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. 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.
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 of the related product patents. For intangible assets related to HETLIOZ®, the estimated useful life is through March 2035, which is the estimated economic useful life of the related product patents. Intangible assets related Fanapt® have been fully amortized on a straight-line basis to November 2016. The useful life estimate for Fanapt® was based on the market participant methodology prescribed by Accounting Standards Codification (ASC) 805, and therefore does 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. In the case 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 leases. For existing office leases as of the adoption date of ASC 842, Leases, on January 1, 2019, executory costs are excluded from lease expense, which is consistent with the Company’s accounting under ASC 840, Leases. For all office leases entered into after January 1, 2019, executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices.
Impairment of Long-Lived Assets	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, such as identifiable intangible 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, 2022, 2021 and 2020.
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued LiabilitiesThe 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	Revenue from Net Product SalesThe 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 add taxes, and usage-based taxes are excluded from revenues.
Major Customers	HETLIOZ® is available in the United States (U.S.) for distribution through a limited number of specialty pharmacies, and is not available in retail pharmacies. Specialty pharmacy customers include Accredo (a subsidiary of Express Scripts) and OptumRx (a subsidiary of UnitedHealth Group). Fanapt® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. Wholesaler customers include AmerisourceBergen Drug Corporation, Cardinal Health, Inc. and McKesson Corporation. The Company invoices and records revenue when its customers, specialty pharmacies and wholesalers, 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 sells HETLIOZ® in Germany and has a distribution agreement for the commercialization of Fanapt® in Israel. 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.
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 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. Reserves for variable consideration are classified as product revenue allowances on the Consolidated Balance Sheets, with the exception of prompt-pay discounts that 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, and product returns that are resolved during the product expiry period specified in the customer contract. The Company currently records sales allowances for the following: •Prompt-pay: Specialty pharmacies and wholesalers are offered discounts for prompt payment. The Company expects that the specialty pharmacies and wholesalers 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 new 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. The allowance for rebates is based on statutory or contracted discount rates and estimated patient utilization. •Chargebacks: Chargebacks are discounts that occur when contracted indirect customers purchase directly from specialty pharmacies and wholesalers. 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 specialty pharmacy or wholesaler, in turn, charges back the difference between the price initially paid by the specialty pharmacy or wholesaler and the discounted price paid to the specialty pharmacy or wholesaler by the contracted customer. •Medicare Part D Coverage Gap: 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. Vanda accounts for the Medicare Part D coverage gap using a point of sale model. Estimates for expected Medicare Part D coverage gap are based in part on historical activity and, where available, actual and pending prescriptions when the Company has validated the insurance benefits. •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-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment 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 goods to be resalable.
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, milestone payments, 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 related to 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 included 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 ExpenseThe Company expenses the costs of advertising, including branded promotional expenses, as incurred.
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). 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.
Income Taxes	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 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There are no recent accounting pronouncements that are expected to have a material impact on the Company’s consolidated financial statements or related disclosures.
Earnings per Share	Basic earnings per share (EPS) is calculated by dividing the net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income 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.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Reconciliation of Cash, Cash Equivalents and Restricted Cash


	December 31,
(in thousands)	2022		2021
Cash and cash equivalents	$	135,029	$	52,071

Restricted cash included in non-current inventory and other	469		519
Total cash, cash equivalents and restricted cash	$	135,498	$	52,590

Net Sales by Product

The Company’s net product sales consist of sales of HETLIOZ® and Fanapt®. Net sales by product for the years ended December 31, 2022, 2021 and 2020 were as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
HETLIOZ® net product sales	$	159,655	$	173,536	$	160,686
Fanapt® net product sales	94,727		95,146		87,482
Total net product sales	$	254,382	$	268,682	$	248,168

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, 2022, 2021 and 2020:


	Year Ended December 31,
Percent of Net Product Sales	2022		2021		2020
Distributor A	36	%	40	%	43	%
Distributor B	16	%	18	%	19	%
Distributor C	13	%	12	%	12	%
Distributor D	11	%	10	%	11	%
Distributor E	11	%	11	%	10	%

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, 2022 and 2021:


	December 31,
Percent of Accounts Receivable, Net	2022		2021
Distributor A	18	%	31	%
Distributor B	13	%	*
Distributor C	20	%	17	%
Distributor D	16	%	16	%
Distributor E	14	%	14	%

*Represents less than 10% of respective balance.

Summary of Product Return Allowance

The following table summarizes activity for product returns as of and for the years ended December 31, 2022, 2021 and 2020, all of which relates to sales of Fanapt®:


(in thousands)	Reserve for Product Returns
Balances at December 31, 2019	$	6,120
Additions	3,844
Credits/payments	(5,266)
Balances at December 31, 2020	4,698
Additions	2,870
Credits/payments	(3,017)
Balances at December 31, 2021	4,551
Additions	4,332
Credits/payments	(3,739)
Balances at December 31, 2022	$	5,144

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of Available-for-Sale Marketable Securities

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2022, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	178,351	$	—	$	(1,181)	$	177,170
Corporate debt	155,017		14		(371)		154,660

Total marketable securities	$	333,368	$	14	$	(1,552)	$	331,830

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2021, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	195,076	$	1	$	(358)	$	194,719
Corporate debt	185,933		113		(23)		186,023

Total marketable securities	$	381,009	$	114	$	(381)	$	380,742

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

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, 2022, as follows:


			Fair Value Measurement as of December 31, 2022 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	177,170	$	177,170	$	—	$	—
Corporate debt	154,660		—		154,660		—

Total assets measured at fair value	$	331,830	$	177,170	$	154,660	$	—

The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2021, as follows:


			Fair Value Measurement as of December 31, 2021 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	194,719	$	194,719	$	—	$	—
Corporate debt	186,023		—		186,023		—

Total assets measured at fair value	$	380,742	$	194,719	$	186,023	$	—

Inventory (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following as of December 31, 2022 and 2021:


(in thousands)	December 31, 2022		December 31, 2021
Current assets
Work-in-process	$	23	$	30
Finished goods	1,171		995
Total inventory, current	$	1,194	$	1,025
Non-Current assets
Raw materials	$	1,043	$	2,143
Work-in-process	8,212		3,934
Finished goods	1,041		1,150
Total inventory, non-current	10,296		7,227
Total inventory	$	11,490	$	8,252

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment-at Cost

The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2022 and 2021:


(in thousands)	Estimated Useful Life (Years)	December 31, 2022		December 31, 2021
Computer and other equipment	3	$	5,941	$	5,481
Furniture and fixtures	5 - 7	1,634		1,546
Leasehold improvements	5 - 11	5,417		5,463
Total property and equipment, gross		12,992		12,490
Accumulated depreciation and amortization		(10,419)		(9,377)
Total property and equipment, net		$	2,573	$	3,113

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Lease Assets and Liabilities

The following is a summary of the Company’s ROU assets and operating lease liabilities as of December 31, 2022 and 2021:


(in thousands)	Classification on the Balance Sheet	December 31, 2022			December 31, 2021
Assets
Operating lease assets	Operating lease right-of-use assets	$	8,400		$	9,272

Liabilities
Operating lease current liabilities	Accounts payable and accrued liabilities	$	2,328		$	2,311
Operating lease non-current liabilities	Operating lease non-current liabilities	8,813			10,055
Total lease liabilities		$	11,141		$	12,366

Weighted average remaining lease term		5.2			6.2
Weighted average discount rate		8.2		%	8.1		%

Reconciliation of Future Cash Obligations to Operating Lease Liabilities

The table below reconciles the Company’s future cash obligations to operating lease liabilities recorded on the balance sheet as of December 31, 2022:



(in thousands)	Operating Leases
2023	$	2,647
2024	2,714
2025	2,784
2026	2,407
2027	2,159
Thereafter	1,099
Total minimum lease payments	13,810
Less: amount of lease payments representing interest	(2,669)
Present value of future minimum lease payments	11,141
Less: current obligations under leases	(2,328)
Operating lease non-current liabilities	$	8,813

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

The following is a summary of the Company’s intangible assets as of December 31, 2022:


		December 31, 2022
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	March 2035	$	33,000	$	14,435	$	18,565

The following is a summary of the Company’s intangible assets as of December 31, 2021:


		December 31, 2021
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	July 2035	$	33,000	$	12,919	$	20,081

Summary of Amortization Expense

Amortization expense for the years ended December 31, 2022, 2021 and 2020 was as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
HETLIOZ®	$	1,516	$	1,478	$	1,478

Summary of Future Intangible Asset Amortization

The following is a summary of the future intangible asset amortization schedule as of December 31, 2022:


(in thousands)	Total		2023		2024		2025		2026		2027		Thereafter
HETLIOZ®	$	18,565	$	1,516	$	1,516	$	1,516	$	1,516	$	1,516	$	10,985

Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Summary of Accounts Payable and Accrued Liabilities

The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2022 and 2021:


(in thousands)	December 31, 2022		December 31, 2021
Research and development expenses	$	9,474	$	10,082
Consulting and other professional fees	9,241		8,732
Compensation and employee benefits	6,839		6,515
Royalties payable	4,979		5,873
Operating lease liabilities	2,328		2,311

Accounts payable and other accrued liabilities	12,690		925
Total accounts payable and accrued liabilities	$	45,551	$	34,438

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Summary of Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss)

The accumulated balances related to each component of other comprehensive loss, net of taxes, were as follows for the years ended December 31, 2022 and 2021:


(in thousands)	December 31, 2022		December 31, 2021
Foreign currency translation	$	(7)	$	32
Unrealized loss on marketable securities	(1,186)		(207)
Accumulated other comprehensive loss	$	(1,193)	$	(175)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Option Activity

A summary of option activity under the Plans for the year ended December 31, 2022 is as follows:


(in thousands, except for share and per share amounts)	Number of Shares	Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2021	3,721,148	$	14.16	5.77	$	11,327
Granted	745,028	11.10

Expired	(14,000)	11.95
Exercised	(219,966)	3.34			1,579
Outstanding at December 31, 2022	4,232,210	14.19		5.81	—
Exercisable at December 31, 2022	2,969,040	14.43		4.62	—
Vested and expected to vest at December 31, 2022	4,104,620	14.23		5.72	—

Summary of RSU Activity

A summary of RSU activity for the Plans for the year ended December 31, 2022 is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2021	1,764,740	$	17.27
Granted	944,374	11.24
Forfeited	(130,625)	14.48
Vested	(662,943)	17.49
Unvested at December 31, 2022	1,915,546	14.41

Stock-Based Compensation Expense

Stock-based compensation expense recognized for the years ended December 31, 2022, 2021 and 2020 comprised of the following:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Research and development	$	3,964	$	3,955	$	3,804
Selling, general and administrative	12,315		11,419		9,556
Total stock-based compensation expense	$	16,279	$	15,374	$	13,360

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, 2022, 2021 and 2020 were as follows:


	Year Ended December 31,
	2022		2021		2020
Expected dividend yield	—	%	—	%	—	%
Weighted average expected volatility	46	%	46	%	51	%
Weighted average expected term (years)	6.05		5.98		6.07
Weighted average risk-free rate	2.03	%	0.75	%	1.14	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of the Domestic and Foreign Components of Income Before Income Taxes

The following is a summary of the domestic and foreign components of income before income taxes for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Domestic	$	11,216	$	42,221	$	31,667
Foreign	84		143		(12)
Total income before income taxes	$	11,300	$	42,364	$	31,655

Summary of Provision (Benefit) for Income Taxes

The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Current
Federal	$	—	$	—	$	—
State	3,710		2,200		2,061
Foreign	185		267		68
Deferred
Federal	1,238		6,604		6,076
State	(111)		119		155
Foreign	3		22		(42)
Provision for income taxes	$	5,025	$	9,212	$	8,318

Reconciliation Between Statutory Tax Rate and Effective Tax Rate

The following is reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
	2022		2021		2020
Federal tax at statutory rate	21.0	%	21.0	%	21.0	%
State taxes	4.8	%	2.3	%	2.6	%
Change in valuation allowance	1.0	%	(0.1)	%	(3.5)	%
Research and development credit	(25.9)	%	(6.5)	%	(5.4)	%
Orphan drug credit	(0.9)	%	(0.1)	%	(1.3)	%
Section 162(m) limitation	9.4	%	2.6	%	1.7	%
Other tax rate changes	1.7	%	(0.2)	%	0.2	%
Uncertain tax positions	24.5	%	4.0	%	4.7	%
Stock-based compensation	5.8	%	(1.8)	%	5.1	%
Settlements	2.6	%	—	%	—	%
Other items	0.5	%	0.5	%	1.2	%
Effective tax rate	44.5	%	21.7	%	26.3	%

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, 2022 and 2021.


(in thousands)	December 31, 2022		December 31, 2021
Deferred tax assets
Net operating loss carryforwards	$	13,746	$	35,509
Stock-based compensation	4,930		4,846
Accrued expenses	1,469		1,409
Allowance for returns and credit losses	1,560		1,142
Research and development and orphan drug credit carryforwards	42,402		39,975
Capitalized research and development expenses	16,990		—
Other	3,798		3,081
Total deferred tax assets	84,895		85,962
Deferred tax liabilities
Intangible assets	(1,924)		(1,919)
Other	(1,796)		(2,140)
Total deferred tax liabilities	(3,720)		(4,059)
Deferred tax assets, net	81,175		81,903
Less: Valuation allowance	7,136		7,025
Net deferred tax assets	$	74,039	$	74,878

Summary 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, 2022, 2021 and 2020:


(in thousands)	Balance at Beginning of Year		Additions		Reductions		Balance at End of Year
Year Ended
December 31, 2022	$	7,025	$	111	$	—	$	7,136
December 31, 2021	7,051		—		(26)		7,025
December 31, 2020	8,155		—		(1,104)		7,051

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)	2022		2021		2020
Unrecognized tax benefits at the beginning of the year	$	12,935	$	11,233	$	9,741
Increases (decreases) related to prior year tax positions	(75)		122		(121)
Increases related to current year tax positions	2,895		1,580		1,613
Settlements	(270)		—		—
Unrecognized tax benefits at the end of the year	$	15,485	$	12,935	$	11,233

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Basic and Diluted Net Income Per Share of Common Stock

The following table presents the calculation of basic and diluted net income per share of common stock for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
(in thousands, except for share and per share amounts)	2022		2021		2020
Numerator:
Net income	$	6,275	$	33,152	$	23,337
Denominator:
Weighted average shares outstanding, basic	56,461,877		55,548,122		54,427,683
Effect of dilutive securities	521,294		1,373,714		763,119
Weighted average shares outstanding, diluted	56,983,171		56,921,836		55,190,802
Net income per share, basic and diluted:
Basic	$	0.11	$	0.60	$	0.43
Diluted	$	0.11	$	0.58	$	0.42
Antidilutive securities excluded from calculations of diluted net income per share	4,786,891		2,176,944		3,407,409

Business Organization and Presentation (Detail)	12 Months Ended
Business Organization and Presentation (Detail)	Dec. 31, 2022 segment product
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments \| segment	1
Number of products in portfolio \| product	2

Summary of Significant Accounting Policies - Reconciliation Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 135,029	$ 52,071
Restricted cash	469	519
Total cash, cash equivalents and restricted cash	$ 135,498	$ 52,590	$ 61,613	$ 45,650

Summary of Significant Accounting Policies - Net Sales by Product (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from External Customer [Line Items]
Net product sales	$ 254,382	$ 268,682	$ 248,168
HETLIOZ®
Revenue from External Customer [Line Items]
Net product sales	159,655	173,536	160,686
Fanapt®
Revenue from External Customer [Line Items]
Net product sales	$ 94,727	$ 95,146	$ 87,482

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Summary of Significant Accounting Policies - Schedule of Major Customers that Represented More Than 10% of Total Revenues (Detail) - Customer Concentration Risk - Sales Revenue, Net	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Distributor A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	36.00%	40.00%	43.00%
Distributor B
Revenue, Major Customer [Line Items]
Concentration risk, percentage	16.00%	18.00%	19.00%
Distributor C
Revenue, Major Customer [Line Items]
Concentration risk, percentage	13.00%	12.00%	12.00%
Distributor D
Revenue, Major Customer [Line Items]
Concentration risk, percentage	11.00%	10.00%	11.00%
Distributor E
Revenue, Major Customer [Line Items]
Concentration risk, percentage	11.00%	11.00%	10.00%

Summary of Significant Accounting Policies - Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net (Detail) - Credit Concentration Risk - Accounts Receivable	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Distributor A
Concentration Risk [Line Items]
Concentration risk, percentage	18.00%	31.00%
Distributor B
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%
Distributor C
Concentration Risk [Line Items]
Concentration risk, percentage	20.00%	17.00%
Distributor D
Concentration Risk [Line Items]
Concentration risk, percentage	16.00%	16.00%
Distributor E
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%	14.00%

Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounting Policies [Abstract]
Percentage of insurance coverage gap allocated for prescription drugs under Medicare Part D	70.00%
Advertising expenses	$ 2,600,000	$ 6,700,000	$ 12,600,000
Number of reportable segments \| segment	1
Impairment, Long-Lived Asset, Held-for-Use	$ 0	$ 0	$ 0

Summary of Significant Accounting Policies - Summary of Product Return Allowance (Detail) - Reserve for Product Returns - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 4,551	$ 4,698	$ 6,120
Additions	4,332	2,870	3,844
Credits/payments	(3,739)	(3,017)	(5,266)
Ending balance	$ 5,144	$ 4,551	$ 4,698

Marketable Securities - Summary of Available-For-Sale Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 333,368	$ 381,009
Gross Unrealized Gains	14	114
Gross Unrealized Losses	(1,552)	(381)
Fair Market Value	331,830	380,742
U.S. Treasury and government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	178,351	195,076
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(1,181)	(358)
Fair Market Value	177,170	194,719
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	155,017	185,933
Gross Unrealized Gains	14	113
Gross Unrealized Losses	(371)	(23)
Fair Market Value	$ 154,660	$ 186,023

Fair Value Measurements - Additional Information (Detail) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 331,830,000	$ 380,742,000
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	$ 0

Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Work-in-process	$ 23	$ 30
Finished goods	1,171	995
Total inventory, current	1,194	1,025
Non-Current assets
Raw materials	1,043	2,143
Work-in-process	8,212	3,934
Finished goods	1,041	1,150
Total inventory, non-current	10,296	7,227
Total inventory	$ 11,490	$ 8,252

Property and Equipment - Summary of Property and Equipment-at Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 12,992	$ 12,490
Accumulated depreciation and amortization	(10,419)	(9,377)
Total property and equipment, net	$ 2,573	3,113
Computer and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Total property and equipment, gross	$ 5,941	5,481
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 1,634	1,546
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	$ 5,417	$ 5,463
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 - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,217	$ 1,363	$ 1,386

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Dec. 31, 2022 USD ($) ft²	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease cost	$ 2.2	$ 2.3	$ 2.3
Short-term lease cost	0.4	0.4	0.4
Non-lease component expense	1.4	1.4	1.5
Operating lease, payments	$ 2.6	$ 2.3	$ 2.6
Washington, D.C. Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Leased square footage \| ft²	33,534
Renewal term of lease agreement	5 years
Washington, D.C. Lease \| Sublease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Leased square footage \| ft²	9,928
London Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Leased square footage \| ft²	2,880

Leases - Schedule of Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Operating lease assets	$ 8,400	$ 9,272
Liabilities
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued liabilities	Accounts payable and accrued liabilities
Operating lease current liabilities	$ 2,328	$ 2,311
Operating lease non-current liabilities	8,813	10,055
Total lease liabilities	$ 11,141	$ 12,366
Weighted average remaining lease term	5 years 2 months 12 days	6 years 2 months 12 days
Weighted average discount rate	8.20%	8.10%

Leases - Reconciliation of Future Cash Obligations to Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
2023	$ 2,647
2024	2,714
2025	2,784
2026	2,407
2027	2,159
Thereafter	1,099
Total minimum lease payments	13,810
Less: amount of lease payments representing interest	(2,669)
Total lease liabilities	11,141	$ 12,366
Less: current obligations under leases	(2,328)	(2,311)
Operating lease non-current liabilities	$ 8,813	$ 10,055

Intangible Assets - HETLIOZ - Additional Information (Detail) - HETLIOZ® - USD ($) $ in Millions	1 Months Ended		12 Months Ended	227 Months Ended
	Apr. 30, 2018	Jan. 31, 2014	Dec. 31, 2018	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets		$ 8.0	$ 25.0	$ 37.5
Cumulative worldwide sales milestone	$ 250.0

Intangible Assets - Fanapt - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Fanapt®
Finite-Lived Intangible Assets [Line Items]
Fully amortized intangible assets	$ 27.9	$ 27.9

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 18,565	$ 20,081
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,000	33,000
Accumulated Amortization	14,435	12,919
Net Carrying Amount	$ 18,565	$ 20,081

Intangible Assets - Summary of Amortization Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 1,516	$ 1,478	$ 1,478
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 1,516	$ 1,478	$ 1,478

Intangible Assets - Summary of Future Intangible Asset Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 18,565	$ 20,081
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	18,565	$ 20,081
2023	1,516
2024	1,516
2025	1,516
2026	1,516
2027	1,516
Thereafter	$ 10,985

Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Compensation and employee benefits	$ 6,839	$ 6,515
Research and development expenses	9,474	10,082
Royalties payable	4,979	5,873
Consulting and other professional fees	9,241	8,732
Operating lease liabilities	2,328	2,311
Accounts payable and other accrued liabilities	12,690	925
Total accounts payable and accrued liabilities	$ 45,551	$ 34,438

Commitments and Contingencies - HETLIOZ - Additional Information (Detail) - HETLIOZ® - USD ($) $ in Millions	1 Months Ended		12 Months Ended		227 Months Ended
	Dec. 31, 2022	Jan. 31, 2014	Dec. 31, 2022	Dec. 31, 2018	Dec. 31, 2022
HETLIOZ
Acquisition of intangible assets		$ 8.0		$ 25.0	$ 37.5
Intangible assets capitalized					$ 33.0
Royalty payment period			10 years
Percentage of future sublicense fees payable to third-party			mid-twenties
Non-US
HETLIOZ
Royalty payable percentage on net sales			5.00%
U.S.
HETLIOZ
Royalty payable percentage on net sales	5.00%		10.00%

Commitments and Contingencies - Fanapt - Additional Information (Detail) - Fanapt®	12 Months Ended	60 Months Ended
	Dec. 31, 2022	Dec. 31, 2019
Fanapt
Royalty payable percentage on net sales	6.00%	3.00%
Royalty payment period	10 years

Commitments and Contingencies - Tradipitant - Additional Information (Detail) - Tradipitant - USD ($) $ in Millions	12 Months Ended	129 Months Ended
	Dec. 31, 2022	Dec. 31, 2022
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	low double digits
Development and milestone payments to third party		$ 3.0
Pre-NDA Approval Milestones
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 2.0
Sales Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	80.0
U.S. \| Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	10.0
E.U. \| Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 5.0

Commitments and Contingencies - CFTR Activators and Inhibitors - Additional Information (Detail) - CFTR Activators and Inhibitors - USD ($) $ in Thousands	12 Months Ended	70 Months Ended
	Dec. 31, 2022	Dec. 31, 2022
CFTR activators and inhibitors
Tiered royalties payable on future net sales	single-digit
Development and milestone payments to third party		$ 1,600
Development Milestone
CFTR activators and inhibitors
Possible future milestone payments	$ 11,900
Future Regulatory Approval And Sales Milestones
CFTR activators and inhibitors
Possible future milestone payments	33,000
Development And Milestone Payment
CFTR activators and inhibitors
Possible future milestone payments	1,100
Development And Milestone Payment \| Maximum
CFTR activators and inhibitors
Possible future milestone payments	$ 3,200

Commitments and Contingencies - VQW-765 - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2022
VQW-765
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	mid-teens

Commitments and Contingencies - Purchase Commitments (Detail)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Agreements for clinical and marketing services, termination notice period	90 days

Commitments and Contingencies - Other Agreements (Details) $ in Millions	1 Months Ended
	Sep. 30, 2022 USD ($)
OliPass Corporation \| Additional Funding Agreement Terms
Commitments and Contingencies [Line Items]
Consideration for entering into the agreement	$ 3.0

Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Foreign currency translation	$ (7)	$ 32
Unrealized loss on marketable securities	(1,186)	(207)
Accumulated other comprehensive loss	$ (1,193)	$ (175)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Stock-Based Compensation - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2022 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)	6,147,756
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock authorized for issuance (in shares)	11,890,000
Number of shares of common stock available for future grant (in shares)	4,257,565

Stock-Based Compensation - Stock Option - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) installment $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 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	25.00%
Portion of initial stock options granted to employees that vests ratably over three years after completion of first year of service	75.00%
Number of vesting equal installments \| installment	36
Options granted, weighted average fair value per share (in dollars per share) \| $ / shares	$ 5.18	$ 8.91	$ 5.53
Intrinsic value of options exercised	$ 1,600	$ 4,100	$ 2,900
Proceeds from exercise of stock options	$ 734	$ 3,550	$ 5,634
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	$ 7,100
Unrecognized compensation expenses, weighted average period	1 year 2 months 12 days

Stock-Based Compensation - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Aggregate Intrinsic Value
Exercised	$ 1,600	$ 4,100	$ 2,900
2006 Plan and 2016 Plan
Number of Shares
Beginning balance (in shares)	3,721,148
Granted (in shares)	745,028
Expired (in shares)	(14,000)
Exercised (in shares)	(219,966)
Ending balance (in shares)	4,232,210	3,721,148
Exercisable at end of period (in shares)	2,969,040
Vested and expected to vest at end of period (in shares)	4,104,620
Weighted Average Exercise Price at Grant Date
Beginning balance (in dollars per share)	$ 14.16
Granted (in dollars per share)	11.10
Expired (in dollars per share)	11.95
Exercised (in dollars per share)	3.34
Ending balance (in dollars per share)	14.19	$ 14.16
Exercisable at end of period (in dollars per share)	14.43
Vested and expected to vest at end of period (in dollars per share)	$ 14.23
Weighted Average Remaining Term (Years)
Weighted Average Remaining Term	5 years 9 months 21 days	5 years 9 months 7 days
Exercisable at end of period	4 years 7 months 13 days
Vested and expected to vest at end of period	5 years 8 months 19 days
Aggregate Intrinsic Value
Beginning balance	$ 11,327
Exercised	1,579
Ending balance	0	$ 11,327
Exercisable at end of period	0
Vested and expected to vest at end of period	$ 0

Stock-Based Compensation - RSU - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) installment $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 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 \| $	$ 19.1
Unrecognized compensation expenses, weighted average period	1 year 7 months 6 days
Granted (in dollars per share) \| $ / shares	$ 11.24	$ 19.57	$ 11.28
Grant date fair value of common stock vested \| $	$ 11.6	$ 9.1	$ 9.6

Stock-Based Compensation - Summary of RSU Activity Plan (Detail) - Restricted Stock Units (RSU) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Beginning balance (in shares)	1,764,740
Granted (in shares)	944,374
Forfeited (in shares)	(130,625)
Vested (in shares)	(662,943)
Ending balance (in shares)	1,915,546	1,764,740
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 17.27
Granted (in dollars per share)	11.24	$ 19.57	$ 11.28
Forfeited (in dollars per share)	14.48
Vested (in dollars per share)	17.49
Ending balance (in dollars per share)	$ 14.41	$ 17.27

Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 16,279	$ 15,374	$ 13,360
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,964	3,955	3,804
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 12,315	$ 11,419	$ 9,556

Stock-Based Compensation - Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted (Detail)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%
Weighted average expected volatility	46.00%	46.00%	51.00%
Weighted average expected term (years)	6 years 18 days	5 years 11 months 23 days	6 years 25 days
Weighted average risk-free rate	2.03%	0.75%	1.14%

Employee Benefit Plan (Detail) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Detail) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Defined contribution plan employer matching percent	50.00%
Defined contribution plan maximum employee contribution percent	6.00%
Defined contribution plan vesting period	4 years
Defined contribution plan matching amount	$ 1.1	$ 1.0	$ 0.9

Income Taxes - Summary of Domestic and Foreign Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ 11,216	$ 42,221	$ 31,667
Foreign	84	143	(12)
Income before income taxes	$ 11,300	$ 42,364	$ 31,655

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Summary of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current
Federal	$ 0	$ 0	$ 0
State	3,710	2,200	2,061
Foreign	185	267	68
Deferred
Federal	1,238	6,604	6,076
State	(111)	119	155
Foreign	3	22	(42)
Provision for income taxes	$ 5,025	$ 9,212	$ 8,318

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation Between Statutory Tax Rate and Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal tax at statutory rate	21.00%	21.00%	21.00%
State taxes	4.80%	2.30%	2.60%
Change in valuation allowance	1.00%	(0.10%)	(3.50%)
Research and development credit	(25.90%)	(6.50%)	(5.40%)
Orphan drug credit	(0.90%)	(0.10%)	(1.30%)
Section 162(m) limitation	9.40%	2.60%	1.70%
Other tax rate changes	1.70%	(0.20%)	0.20%
Uncertain tax positions	24.50%	4.00%	4.70%
Stock-based compensation	5.80%	(1.80%)	5.10%
Settlements	2.60%	0.00%	0.00%
Other items	0.50%	0.50%	1.20%
Effective tax rate	44.50%	21.70%	26.30%

Income Taxes - Components of Net Deferred Tax Assets and Related Valuation Allowance (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Net operating loss carryforwards	$ 13,746	$ 35,509
Stock-based compensation	4,930	4,846
Accrued expenses	1,469	1,409
Allowance for returns and credit losses	1,560	1,142
Research and development and orphan drug credit carryforwards	42,402	39,975
Capitalized research and development expenses	16,990	0
Other	3,798	3,081
Total deferred tax assets	84,895	85,962
Deferred tax liabilities
Intangible assets	(1,924)	(1,919)
Other	(1,796)	(2,140)
Total deferred tax liabilities	(3,720)	(4,059)
Deferred tax assets, net	81,175	81,903
Less: Valuation allowance	7,136	7,025	$ 7,051	$ 8,155
Net deferred tax assets	$ 74,039	$ 74,878

Income Taxes - Summary of Changes in Tax Valuation Allowance (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred Tax Assets, Valuation Allowance [Roll Forward]
Balance at Beginning of Year	$ 7,025	$ 7,051	$ 8,155
Additions	111	0	0
Reductions	0	(26)	(1,104)
Balance at End of Year	$ 7,136	$ 7,025	$ 7,051

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Net operating loss carryforwards	$ 13,746	$ 35,509
Deferred tax assets related to U.S. federal research and development credits	$ 17,900
Net operating loss carryforwards beginning expiration year	2035
U.S. research and development credit beginning expiration year	2024
Orphan drug credit beginning expiration year	2030
Deferred tax assets relating to U.S. state NOL carryforwards	$ 7,700
Unrecognized tax benefits that would impact effective tax rate	15,500
U.S. Federal
Income Taxes [Line Items]
Net operating loss carryforwards	6,100
Orphan Drug
Income Taxes [Line Items]
Net deferred tax assets	$ 24,500
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	2029

Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at the beginning of the year	$ 12,935	$ 11,233	$ 9,741
Decrease related to prior year tax positions	(75)		(121)
Increase related to prior year tax positions		122
Increases related to current year tax positions	2,895	1,580	1,613
Settlements	(270)	0	0
Unrecognized tax benefits at the end of the year	$ 15,485	$ 12,935	$ 11,233

Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income	$ 6,275	$ 33,152	$ 23,337
Denominator:
Weighted average shares outstanding, basic (in shares)	56,461,877	55,548,122	54,427,683
Effect of dilutive securities (in shares)	521,294	1,373,714	763,119
Weighted average shares outstanding, diluted (in shares)	56,983,171	56,921,836	55,190,802
Net income per share, basic and diluted:
Basic (in dollars per share)	$ 0.11	$ 0.60	$ 0.43
Diluted (in dollars per share)	$ 0.11	$ 0.58	$ 0.42
Antidilutive securities excluded from calculations of diluted net income per share (in shares)	4,786,891	2,176,944	3,407,409

Legal Matters (Details) - Gordon v. Vanda Pharmaceuticals Inc. - USD ($) $ in Millions	1 Months Ended	8 Months Ended
	May 31, 2022	Dec. 31, 2022
Prepaid Expenses and Other Current Assets
Loss Contingencies [Line Items]
Payments for legal settlements		$ 11.5
Accounts Payable and Accrued Liabilities
Loss Contingencies [Line Items]
Payments for legal settlements		$ 11.5
Pending Litigation
Loss Contingencies [Line Items]
Amount awarded to other party	$ 11.5

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 331,830	$ 380,742
U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	177,170	194,719
Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	154,660	186,023
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	177,170	194,719
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]
Assets measured at fair value	177,170	194,719
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]
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]
Assets measured at fair value	154,660	186,023
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]
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]
Assets measured at fair value	154,660	186,023
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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]
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]
Assets measured at fair value	$ 0	$ 0