Harmony Biosciences Holdings (HRMY) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: N/A
• Average Volume (3M): 577.11K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.51
• Revenue Growth: 17.74%
• EPS Growth: 59.96%
• Country: US
• Employees: 268
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): 0.68
• Shares Outstanding: 57,532,600
• 10 Day Avg. Volume: 615,573
• 30 Day Avg. Volume: 577,107
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 5.62
• 1Y Price Target: $51.14
• Price Target Upside: 40.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 81 Outperform
• Price Target: $40.00 ▲(9.56% Upside)

Harmony Biosciences receives a strong overall score driven by its robust financial performance, attractive valuation, and positive corporate developments. The company's solid financials and strategic initiatives in pipeline advancement and patent protection position it well for future growth, despite moderate technical indicators and some regulatory uncertainties.

Positive Factors

Pipeline Development

Topline data from the Phase 3 RECONNECT trial in Fragile X syndrome remains on track and, if positive, could support the first FDA-approved therapy for FXS, representing a potential inflection point in a severely underserved patient population.

Revenue Growth

WAKIX continues to deliver resilient growth, with 16% year-over-year revenue expansion and steady prescriber penetration across both REMS and non-REMS segments.

Negative Factors

Earnings Miss

HRMY reported a top-line miss, with Wakix revenue of $200.5mn below estimates.

Investor Expectations

Investor expectations are low for Harmony Biosciences due to a history of failures, gel formulation issues, and an unproven mechanism of action.

Harmony Biosciences Holdings Business Overview & Revenue Model

Company Description

Harmony Biosciences Holdings, Inc. is a pharmaceutical company focused on developing and commercializing innovative therapies for patients with rare neurological disorders. The company is primarily engaged in the healthcare sector, with its core product being WAKIX (pitolisant), a novel treatment for excessive daytime sleepiness in adults with narcolepsy.

How the Company Makes Money

Harmony Biosciences generates revenue primarily through the sales of its pharmaceutical product, WAKIX. The company makes money by marketing and selling WAKIX to healthcare providers, hospitals, and pharmacies, which then distribute the medication to patients. Key revenue streams include direct sales of the drug in the United States, and the company may also engage in strategic partnerships or licensing agreements to expand its product reach and maximize its market potential. Factors contributing to its earnings include the drug's efficacy, market demand for treatments addressing narcolepsy, and the company's ability to navigate the regulatory landscape to maintain product approvals and explore additional indications for WAKIX.

Harmony Biosciences Holdings Financial Statement Overview

Summary

Harmony Biosciences exhibits strong financial performance with robust revenue growth, high profitability margins, and a solid balance sheet with low leverage. The company's cash flow generation is healthy, supporting its operational and strategic initiatives. Overall, the financial statements indicate a well-managed company with a positive growth outlook in the biotechnology industry.

Income Statement

Harmony Biosciences has demonstrated strong revenue growth with a TTM increase of 3.72% and a consistent upward trajectory over the past years. The company maintains robust profitability with a gross profit margin of 78.34% and a net profit margin of 23.42% in the TTM. EBIT and EBITDA margins are also healthy at 24.32% and 32.88%, respectively, indicating efficient operational management. The consistent growth and strong margins reflect a solid financial performance in the biotechnology sector.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.024 in the TTM, indicating minimal leverage and financial risk. Return on equity is impressive at 26.32%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 69.76%, highlighting a stable financial structure. Overall, the balance sheet reflects financial stability and prudent management of resources.

Cash Flow

Cash flow analysis reveals a positive trend with a free cash flow growth rate of 16.87% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.44, suggesting strong cash conversion from earnings. The free cash flow to net income ratio is nearly 1, reflecting efficient cash management. While cash flow metrics are strong, continued monitoring of cash flow sustainability is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	772.53M	714.73M	582.02M	437.86M	305.44M	159.74M
Gross Profit	605.19M	557.92M	460.79M	354.37M	249.92M	132.00M
EBITDA	265.05M	233.41M	221.51M	143.57M	106.37M	1.51M
Net Income	180.90M	145.49M	128.85M	181.47M	34.60M	-51.86M
Balance Sheet
Total Assets	1.11B	999.20M	811.45M	673.87M	433.44M	427.07M
Cash, Cash Equivalents and Short-Term Investments	565.27M	467.19M	353.46M	323.12M	234.31M	228.63M
Total Debt	172.09M	179.27M	193.57M	191.65M	191.98M	194.25M
Total Liabilities	334.93M	340.05M	344.46M	271.03M	246.94M	329.89M
Stockholders Equity	773.08M	659.15M	466.99M	402.84M	186.51M	97.18M
Cash Flow
Free Cash Flow	258.73M	218.67M	219.07M	104.29M	-1.74M	-4.99M
Operating Cash Flow	259.38M	219.82M	219.39M	144.47M	98.56M	-2.98M
Investing Cash Flow	-23.67M	-67.48M	-46.44M	-141.83M	-100.30M	-2.00M
Financing Cash Flow	-6.95M	-11.00M	-105.55M	6.84M	7.42M	209.16M

Harmony Biosciences Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 36.51 is above the 20-day moving average (MA) of 35.59, above the 50-day MA of 34.32, and above the 200-day MA of 34.15, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRMY.

Harmony Biosciences Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	81 Outperform	$2.04B	11.82	27.58%	―	17.74%	59.96%
ARQT	53 Neutral	$1.92B	―	-57.33%	―	99.50%	65.91%
KYMR	53 Neutral	$2.85B	―	-33.26%	―	-49.51%	-44.09%
Sector *	51 Neutral	$7.44B	-0.20	-46.00%	2.27%	22.80%	-2.27%
RXRX	47 Neutral	$2.35B	―	-86.34%	―	30.14%	-10.08%
DNLI	45 Neutral	$2.11B	―	-39.69%	―	-100.00%	1.62%
BEAM	41 Neutral	$1.71B	―	-41.94%	―	-82.90%	-155.64%

Harmony Biosciences Holdings Corporate Events

Harmony Biosciences Reveals Promising Preclinical Data for BP1.15205

On June 11, 2025, Harmony Biosciences announced new preclinical data for BP1.15205, a promising orexin 2 receptor agonist, showing significant wake-promoting and cataplexy-suppressing effects in narcolepsy type 1 mouse models. The company plans to begin human trials in the latter half of 2025, with results expected in 2026, potentially enhancing its position in the sleep-wake disorder treatment market.

The most recent analyst rating on (HRMY) stock is a Sell with a $32.00 price target. To see the full list of analyst forecasts on Harmony Biosciences Holdings stock, see the HRMY Stock Forecast page.

Harmony Biosciences Settles Patent Dispute with Lupin

On June 5, 2025, Harmony Biosciences announced a settlement with Lupin Limited regarding patent infringement litigation over Lupin’s generic version of WAKIX® (pitolisant hydrochloride). The agreement allows Lupin to launch its generic product no earlier than January 2030, reinforcing Harmony’s patent position and protecting its intellectual property. This settlement highlights Harmony’s commitment to defending its innovations in sleep/wake therapeutics and strengthens its market position as it continues to develop next-generation formulations of pitolisant.

The most recent analyst rating on (HRMY) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Harmony Biosciences Holdings stock, see the HRMY Stock Forecast page.

Harmony Biosciences Holds 2025 Annual Stockholders Meeting

On May 15, 2025, Harmony Biosciences Holdings conducted its 2025 Annual Meeting of Stockholders, where two key proposals were voted on. The election of three Class II directors was confirmed, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating stable governance and continuity in financial oversight for the company.

The most recent analyst rating on (HRMY) stock is a Sell with a $32.00 price target. To see the full list of analyst forecasts on Harmony Biosciences Holdings stock, see the HRMY Stock Forecast page.