Harmony Biosciences Holdings (HRMY) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: N/A
• Average Volume (3M): 620.38K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.49
• Revenue Growth: 20.62%
• EPS Growth: 14.08%
• Country: US
• Employees: 268
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): 0.78
• Shares Outstanding: 57,424,320
• 10 Day Avg. Volume: 589,177
• 30 Day Avg. Volume: 620,381
• PEG Ratio: 3.03
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.00
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $49.22
• Price Target Upside: 34.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $39.00 ▲(6.24%Upside)

Harmony Biosciences Holdings scores well due to its strong financial performance, supported by impressive revenue growth and profitability. The company’s strategic initiatives and robust pipeline contribute significantly to its positive outlook. However, technical indicators suggest caution, with the stock nearing overbought levels. Valuation remains attractive, and recent corporate events further enhance its market position.

Positive Factors

Pipeline Growth

Harmony's expanding pipeline, including assets like Clemizole and a preclinical orexin 2 receptor agonist, is viewed as offering multiple future growth opportunities.

Revenue Growth

Harmony is off to a strong start in 2025, reporting 1Q25 net product revenue of $184.7M, up 20% year-over-year, driven by continued commercial execution in narcolepsy.

Negative Factors

Competition

Harmony is a few years behind three orexin competitors in the pipeline.

Operating Expenses

Price objective has been lowered due to higher operating expenses.

Harmony Biosciences Holdings Business Overview & Revenue Model

Company Description

Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, develops and commercializes therapies for patients with rare neurological disorders in the United States. Its product, WAKIX is a medication for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020. Harmony Biosciences Holdings, Inc. was incorporated in 2017 and is based in Plymouth Meeting, Pennsylvania.

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 Holdings demonstrates robust financial health with strong growth, profitability, and cash flow metrics. The company shows significant revenue and profit growth supported by efficient operations and a strong balance sheet. The low debt levels and high equity ratio contribute to financial stability, while robust cash flow generation provides a solid foundation for future expansion.

Income Statement

Harmony Biosciences Holdings demonstrates strong growth and profitability in its income statement. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 77.54% and a net profit margin of 20.50%, indicating effective cost management and strong bottom-line performance. The revenue growth rate from 2023 to 2024 was an impressive 22.81%, reflecting significant business expansion. EBIT and EBITDA margins are healthy at 26.19% and 29.87%, respectively, showcasing operational efficiency. However, the consistently high margins must be maintained to sustain investor confidence in the competitive biotechnology sector.

Balance Sheet

The balance sheet of Harmony Biosciences Holdings is robust, with a strong equity base. The debt-to-equity ratio is low at 0.02, suggesting low financial leverage and reduced risk of financial distress. The return on equity (ROE) is 21.19%, reflecting effective utilization of shareholder capital. The equity ratio stands at 68.26%, indicating a solid capital structure. While the company has strong equity and low debt, maintaining this balance is crucial to support growth without significantly increasing leverage.

Cash Flow

Harmony Biosciences Holdings has a strong cash flow position, with a free cash flow growth rate of 1.25% in the TTM (Trailing-Twelve-Months) period. The company has an operating cash flow to net income ratio of 1.46, indicating efficient conversion of earnings to cash. The free cash flow to net income ratio is 1.45, signifying strong cash generation relative to profits. Despite the positive cash flow metrics, maintaining this trajectory is essential to support future investments and growth initiatives.

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

Harmony Biosciences Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.71
• 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 36.71 is above the 20-day moving average (MA) of 34.08, above the 50-day MA of 34.07, and above the 200-day MA of 34.11, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 88.56 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	80 Outperform	$2.11B	14.00	24.71%	―	20.62%	14.08%
RXRX	61 Neutral	$2.71B	―	-86.10%	―	29.32%	-11.00%
KYMR	60 Neutral	$3.22B	―	-32.17%	―	-25.85%	-23.89%
BEAM	56 Neutral	$2.11B	―	-38.04%	―	-82.38%	-164.76%
ARQT	54 Neutral	$1.79B	―	-70.58%	―	100.03%	64.22%
Sector *	46 Neutral	C$201.68M	-3.28	-23.14%	1.87%	20.75%	-0.36%
DNLI	45 Neutral	$2.10B	―	-35.21%	―	-100.00%	-144.79%

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.