Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap biopharmaceutical Vanda Pharmaceuticals (NASDAQ:VNDA) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Vanda's business and see what CAPS investors are saying about the stock right now.

Vanda facts

Headquarters (founded)

Rockville, Md. (2002)

Market Cap

$302 million



Trailing-12-Month Revenue



Founder/CEO Dr. Mihael Polymeropoulos

CFO Stephanie Irish

Return on Equity (average, last five years)


2-Month Return



Johnson & Johnson (NYSE:JNJ)

Pfizer (NYSE:PFE)

CAPS members bearish on VNDA also bearish on

Citigroup (NYSE:C)

Ford Motor (NYSE:F)

CAPS members bullish on VNDA also bullish on

General Electric (NYSE:GE)


Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 75 of the 104 All-Star members who have rated Vanda -- some 72% -- believe the stock will underperform the S&P 500 going forward. These bears include vanguardtrader and UltraLong, who is currently ranked fourth in all of CAPS.

Late last month, vanguardtrader brought the stock's seemingly insane price run -- fueled by the recent FDA approval of its antipsychotic, Fanapt -- to our community's attention:

[Vanda] has a mediocre drug that surprised investors with FDA approval. Even though it is being mixed into a billion dollar market, Vanda has no money and will have to partner and license out its drug. From my experience it will get in the low double digits to high single digits in royalties. Vanda is way over priced at this point.

In a pitch from last week, UltraLong expands on the craziness:

First I'd like you to meet your competitors … Johnson & Johnson with Risperdal, Pfizer with Geodon and AstraZeneca with SeroQuel. Notice something in common with these companies? Thats right, they sneeze more cash per day than you have in your entire cash pile! Does Vanda really expect to be able to compete with these juggernauts? Oh wait... I forgot the best part... there are already generic drugs out there of the aforementioned companies that make Fanapt look like the Evian water of drugs. Can we say being priced out of the market before even getting to market?

I mean I understand the schizophrenia market is a 23 billion dollar industry, give or take a billion here or there, but Vanda hasn't shown me any reason to believe they will make this a successful drug. Vanda could still potentially die before they even get this drug to a profitable stage.

Definitely too many unknowns here given the 1000% run we've seen over the past month.

What do you think about Vanda, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection, Johnson & Johnson is an Income Investor pick, and Pfizer is a recommendation of Inside Value. The Fool's disclosure policy always gets a perfect score.