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Harmony Biosciences Holdings
(NASDAQ:HRMY)
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Rating:76Outperform
Price Target:
$43.00
▲(10.40% Upside)
Action:Reiterated
Date:10/14/26
The score is driven primarily by strong financial performance (high margins, robust cash generation, and low leverage) and a constructive earnings call with reiterated guidance and ongoing commercial momentum. These positives are partly offset by weak near-term technicals (price below key moving averages with negative momentum) and some execution/legal risks highlighted on the call (COGS pressure, pending BP-205 MAD data, and ANDA litigation).
Positive Factors
Commercial Growth
Strong WAKIX demand, rising patient additions and more than 80% payer coverage support continued commercial expansion. Reiterated revenue guidance above $1 billion indicates management sees the growth trajectory as durable over the coming quarters.
Negative Factors
Margin Pressure
Higher royalties are reducing gross margin relative to the prior year and could limit operating leverage as revenue scales. Persistent cost pressure would constrain profit growth and reduce the portion of commercial cash generation available for pipeline investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial Growth
Strong WAKIX demand, rising patient additions and more than 80% payer coverage support continued commercial expansion. Reiterated revenue guidance above $1 billion indicates management sees the growth trajectory as durable over the coming quarters.
Read all positive factors
Harmony Biosciences Holdings (HRMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)12.3
Beta (1Y)1.05
Revenue Growth24.25%
EPS Growth-0.83%
CountryUS
Employees293
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)3.13
Shares Outstanding58,236,393
10 Day Avg. Volume1,233,841
30 Day Avg. Volume1,089,363
Financial Highlights & Ratios
PEG Ratio1.74
Price to Book (P/B)2.47
Price to Sales (P/S)2.48
P/FCF Ratio6.18
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda6.12
Forecast
1Y Price Target
$45.78Price Target Upside17.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)3.91
Revenue Forecast (FY)$1.03B
Harmony Biosciences Holdings Business Overview & Revenue Model
Company Description
Harmony Biosciences Holdings, Inc. is a commercial-stage pharmaceutical firm dedicated to developing and marketing therapies for individuals in the United States who suffer from rare neurological conditions. Their flagship product, WAKIX, is a pre...
How the Company Makes Money
Harmony Biosciences primarily makes money by selling WAKIX (pitolisant) in the United States. Revenue is generated through prescription demand fulfilled via specialty distribution/pharmacy channels, with net product revenue reflecting gross sales ...
Harmony Biosciences Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive commercial and early clinical story: record revenue growth, accelerating patient adds, improved profitability, a strong cash position, and encouraging Phase I PK/safety data for BP‑205 that support once‑daily dosing and potency. Near‑term risks include higher COGS driven by new royalties, pending MAD safety data (insomnia and polyuria reported as transient signals), active ANDA litigation, and enrollment/timing uncertainties for some trials. On balance, the company demonstrated strong execution on revenue and commercialization while delivering promising early BP‑205 data and maintaining ample capital to pursue business development and R&D; remaining near‑term uncertainty centers on upcoming MAD and efficacy readouts and legal outcomes.Positive Updates
Record Quarterly Revenue and Confirmed Full‑Year Guidance
Net revenue of $261.3M in Q2 2026, up 30% year‑over‑year and up 21% sequentially; company reiterated full‑year guidance of $1.00B to $1.04B and stated revenue is on track to exceed $1B for the year.
Negative Updates
Higher Cost of Goods Sold (COGS) Pressure
COGS increased to 24.2% of net revenue in Q2 2026 from 19.0% in the year‑ago quarter, primarily driven by new royalties under the Novitium license agreement, which reduces gross margins relative to prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Confirmed Full‑Year Guidance
Net revenue of $261.3M in Q2 2026, up 30% year‑over‑year and up 21% sequentially; company reiterated full‑year guidance of $1.00B to $1.04B and stated revenue is on track to exceed $1B for the year.
Read all positive updates
Company Guidance
Harmony reiterated full‑year 2026 net revenue guidance of $1.00–$1.04 billion, driven by record Q2 net revenue of $261.3 million (up 30% year‑over‑year and 21% sequentially) and continued patient growth (estimated average patients 8,950, +≈450 vs. Q1; four of the last five quarters had 400+ patient adds; brand penetration ~20%, >80% lives covered; total narcolepsy addressable population ≈170,000 with ~80,000 diagnosed and 90,000–100,000 undiagnosed). On the P&L, Q2 cost of product sold was 24.2% of revenue (vs. 19% LY), operating expenses were $108.8 million (vs. $114.2 million LY), net income was $75.4 million or $1.28 per diluted share (vs. $39.8 million or $0.68 LY), and the balance sheet finished the quarter with $962.5 million cash/cash equivalents/investments and $155 million debt (≈$963M cash cited elsewhere). Pipeline and IP guidance included BP‑205 SAD results in 72 healthy volunteers showing rapid Tmax (30–75 minutes), mean half‑life ~25 hours, dose‑proportional Cmax/AUC and AEs of headache (~10%), fatigue (~4%) and diarrhea (~3%), with MAD data due in Q4, a Phase Ib sleep‑deprived study starting in Q3 (topline early 2027) and Phase II starts mid‑2027; pitolisant GR NDA accepted with a PDUFA of April 1, 2027, pitolisant HD topline in 2027 (PDUFA 2028), EPX‑100 and TEMPO topline data expected mid‑2027, and a multilayered IP strategy supporting WAKIX exclusivity into March 2030 (including 6 months pediatric exclusivity).Harmony Biosciences Holdings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 959.90M | 868.45M | 714.73M | 582.02M | 437.86M | 305.44M |
| Gross Profit | 723.99M | 670.11M | 557.92M | 460.79M | 354.37M | 249.92M |
| EBITDA | 276.39M | 255.05M | 233.41M | 221.51M | 146.87M | 80.46M |
| Net Income | 181.27M | 158.69M | 145.49M | 128.85M | 181.47M | 34.60M |
Balance Sheet | ||||||
| Total Assets | 1.37B | 1.27B | 999.20M | 811.45M | 673.87M | 433.44M |
| Cash, Cash Equivalents and Short-Term Investments | 667.79M | 775.34M | 467.19M | 353.46M | 323.12M | 234.31M |
| Total Debt | 153.96M | 239.58M | 181.41M | 193.57M | 191.65M | 195.74M |
| Total Liabilities | 373.84M | 401.41M | 340.05M | 344.46M | 271.03M | 246.94M |
| Stockholders Equity | 999.24M | 870.22M | 659.15M | 466.99M | 402.84M | 186.51M |
Cash Flow | ||||||
| Free Cash Flow | 354.90M | 347.89M | 218.67M | 219.07M | 144.29M | 98.26M |
| Operating Cash Flow | 355.08M | 348.20M | 219.82M | 219.39M | 144.47M | 98.56M |
| Investing Cash Flow | -337.57M | -39.65M | -67.48M | -46.44M | -141.83M | -100.30M |
| Financing Cash Flow | -13.79M | -9.05M | -11.00M | -105.55M | 6.84M | 7.42M |
Harmony Biosciences Holdings Technical Analysis
Positive
38.95
Price Trends
39.77
Negative
37.90
Positive
34.66
Positive
Market Momentum
-0.69
Negative
49.61
Neutral
66.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRMY, the sentiment is Positive. The current price of 38.95 is above the 20-day moving average (MA) of 38.33, below the 50-day MA of 39.77, and above the 200-day MA of 34.66, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRMY.
Harmony Biosciences Holdings Risk Analysis
Harmony Biosciences Holdings disclosed 68 risk factors in its most recent earnings report. Harmony Biosciences Holdings reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harmony Biosciences Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.24B | 12.30 | 20.06% | ― | 24.25% | -0.83% | |
73 Outperform | $612.25M | 10.74 | 32.77% | ― | 119.40% | ― | |
55 Neutral | $1.70B | -7.86 | -59.36% | ― | -86.20% | -476.63% | |
52 Neutral | $3.52B | -7.67 | -43.98% | ― | -100.00% | -33.88% | |
52 Neutral | $1.08B | -7.40 | -29.02% | ― | ― | -23.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Harmony Biosciences Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Harmony Biosciences announces CEO transition and succession
Positive
Oct 13, 2026
Harmony Biosciences announced on Oct. 12, 2026, that President and CEO Jeffrey M. Dayno, M.D., will retire and step down from the board effective Dec. 31, 2026, after nine years at the company, remaining as a non-executive advisor through 2027. As...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Harmony Biosciences Posts Record Q2 WAKIX Revenue
Positive
Jul 17, 2026
On July 16, 2026, Harmony Biosciences reported preliminary, unaudited second-quarter 2026 net product revenue for WAKIX of about $261 million, setting a new quarterly record with 30% year-over-year growth and a 21% increase over the prior quarter....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.