Mizuho ‘defending’ Harmony Biosciences after 10% pullback

Mizuho analyst Graig Suvannavejh says that since last Wednesday’s close, Harmony Biosciences shares have lost 10% dye to “successive recent negative headlines” from an update by short seller Scorpion Capital on its Citizen Petition and a ratings downgrade by a sell-side firm. The firm is “defending the name” following the selloff. It believes Scorpion may be mistaken on its assumption that a final response from the FDA could come soon. Mizuho recommends investors take advantage of the recent weakness, particularly ahead of the Phase 3 data for Wakix in Q4. It sees no change in Harmony’s fundamentals and has a continued bullish view on Wakix’s prospects. The firm keeps a Buy rating on the shares with a $54 price target.