Harmony Biosciences price target lowered to $42 from $72 at Piper Sandler

Piper Sandler lowered the firm’s price target on Harmony Biosciences to $42 from $72 and keeps an Overweight rating on the shares. The firm notes that while it had asserted that Harmony’s study evaluating Wakix in idiopathic hypersomnia was relatively low-risk, given the sizable overlap in clinical features between IH and narcolepsy type 2, Piper was “wrong.” The implications of a narcolepsy-only franchise, from a valuation perspective, are “undoubtedly significant,” it acknowledges. That said, the firm’s take is that shares are now reflecting a muted growth trajectory for Wakix in narcolepsy, which strikes it as illogical given the relative dearth of options and reality of idiosyncratic responses to treatment.