Harmony patent litigation update ‘major positive,’ says Mizuho

Mizuho analyst Graig Suvannavejh says the firm has learned of a new patent lawsuit filed by Harmony Biosciences (HRMY) against AET Pharma, the sole remaining generic challenger that has yet to settle. Harmony’s new lawsuit alleges infringement of a patent covering an amorphous formulation of pitolisant, which was recently licensed by Harmony, the analyst tells investors in a research note. Mizuho now believes Harmony’s Wakix franchise should be viewed as “protected and fully intact” until 2030. The firm views the lawsuit as a “significant development” and “major positive” for the company. It should help remove a “major stock overhang” stemming from concerns around a generic coming well before 2030, contends Mizuho. The firm reiterates a an Outperform rating on the shares with a $50 price target