Analyst Patrick Trucchio of H.C. Wainwright reiterated a Buy rating on Harmony Biosciences Holdings, retaining the price target of $70.00.
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Patrick Trucchio has given his Buy rating due to a combination of factors related to the promising developments in the field of orexin-2 receptor agonists for treating narcolepsy type 1. Takeda’s successful Phase 3 trials with oveporexton have established a strong foundation for this mechanism as a disease-modifying approach, showing significant improvements in wakefulness, daytime sleepiness, and quality of life. This success not only validates the potential of orexin-2 receptor agonists but also enhances the prospects of Harmony Biosciences’ BP1.15205 program, which is expected to enter clinical development soon.
Trucchio believes that as Takeda paves the way for commercializing orexin-2 receptor agonists, investor attention will likely shift towards follow-on opportunities like Harmony’s BP1.15205. This compound is seen as a potential key driver for Harmony’s long-term growth, especially as the orexin class matures. The analyst reiterates a Buy rating and a $70 price target for Harmony Biosciences, as the potential of BP1.15205 is not yet fully reflected in the company’s stock valuation.
In another report released today, Mizuho Securities also reiterated a Buy rating on the stock with a $48.00 price target.