Harmony Biosciences Holdings: Strong Q3 Performance and Growth Potential Justify Buy RatingValuation and Risks. We assess Harmony using a risk-adjusted discounted cash flow (DCF)- and sum-of-the-parts (SOTP)- based methodology on free cash flow to the firm (FCFF) and net income per asset, respectively. We assign probabilities of success to pitolisant GR in NT1, NT2, and IH of 60%, pitolisant HD in NT1, NT2, and IH of 60%, EPX100 in Dravet syndrome of 80%, and EPX100 in Lennox-Gastaux syndrome of 80%. We employ a 12% discount rate and a terminal multiple of 6.0x. Taken together, these assumptions yield a total firm value of approximately $3 billion and price target of $55.