In a report released yesterday, Jason Gerberry from Bank of America Securities maintained a Sell rating on Harmony Biosciences Holdings, with a price target of $31.00.
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Jason Gerberry has given his Sell rating due to a combination of factors affecting Harmony Biosciences Holdings. The company’s recent announcement that the Phase 3 RECONNECT study for ZYN002 failed to meet its primary endpoint in treating Fragile X Syndrome represents a significant setback. This development has led to a shift in research and development focus, and the discontinuation of ZYN002 does not impact the current model due to its exclusion based on high study risk.
Gerberry’s concerns are further compounded by the speculative nature of Harmony’s remaining pipeline programs. The lack of clarity on what will replace Wakix after its loss of exclusivity, along with the competitive challenges facing upcoming programs, adds to the uncertainty. Specifically, the epilepsy program lacks differentiation, the orexin program is entering a saturated market, and the pitolisant life cycle programs are not well-defined in terms of their competitive edge in the narcolepsy market.
HRMY’s price has also changed moderately for the past six months – from $34.240 to $26.760, which is a -21.85% drop .