NEW YORK ( TheStreet) -- Vanda Pharmaceuticals (Nasdaq: VNDA) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of clinical-stage products for various central nervous system disorders. Its lead product includes Fanapt for the acute treatment of schizophrenia in adults. Vanda has a market cap of $196 million and is part of the health care sector and drugs industry. Shares are down 21.6% year to date as of the close of trading on Thursday.