Harmony Biosciences Holdings, Inc. (HRMY)
NASDAQ:HRMY
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Harmony Biosciences Holdings
(NASDAQ:HRMY)
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Rating:78Outperform
Price Target:
$36.00
▲(20.04% Upside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by strong financial fundamentals—high margins, solid cash generation, and a notably strengthened low-leverage balance sheet. Earnings-call takeaways are supportive with reiterated guidance and strong Q1 revenue growth, partially offset by higher costs, litigation uncertainty, and near-term market-access friction. Technicals are moderately constructive but mixed longer-term, while valuation appears reasonable on P/E.
Positive Factors
Strong balance sheet & liquidity
A very low-leverage balance sheet with ~$870M cash and only $160M debt provides durable financial flexibility. This capital runway supports continued commercial investment, inorganic M&A or late-stage licensing, and cushions the business through access or trial-timing setbacks over the next 2–6 months.
Negative Factors
Decelerating revenue growth
Growth has meaningfully decelerated from earlier high rates to modest TTM expansion, reducing momentum for durable top-line acceleration. Slower uptake increases reliance on pipeline launches and BD to sustain multi-year revenue targets, raising execution risk over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & liquidity
A very low-leverage balance sheet with ~$870M cash and only $160M debt provides durable financial flexibility. This capital runway supports continued commercial investment, inorganic M&A or late-stage licensing, and cushions the business through access or trial-timing setbacks over the next 2–6 months.
Read all positive factors
Harmony Biosciences Holdings (HRMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend YieldN/A
Average Volume (3M)783.71K
Price to Earnings (P/E)12.8
Beta (1Y)1.05
Revenue Growth20.71%
EPS Growth-5.53%
CountryUS
Employees268
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)2.52
Shares Outstanding57,892,677
10 Day Avg. Volume781,594
30 Day Avg. Volume783,706
Financial Highlights & Ratios
PEG Ratio1.74
Price to Book (P/B)2.47
Price to Sales (P/S)2.48
P/FCF Ratio6.18
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit2.10
Enterprise Value/Ebitda6.20
Forecast
1Y Price Target
$49.50Price Target Upside65.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.51
Revenue Forecast (FY)$1.01B
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 excess...
How the Company Makes Money
Harmony primarily makes money from sales of WAKIX (pitolisant) in the United States. Revenue is generated through prescribing and dispensing of WAKIX via specialty distribution channels, with Harmony recording net product revenue after typical ind...
Harmony Biosciences Holdings Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call portrayed a company with strong commercial momentum (17% revenue growth, reaffirmed $1.0–1.04B guidance), a well-funded balance sheet ($870.5M cash), advancing pipeline programs with near-term milestones (BP-205, pitolisant GR/HD, EPX-100), and an assertive IP defense strategy. Offsetting these positives were higher COGS and a sizable increase in operating expenses driven largely by a $32M upfront license fee, a decline in GAAP net income, muted cash flow for the quarter, ongoing litigation with timing/appeal uncertainty, and Q1 market access headwinds. On balance, highlights—particularly revenue traction, cash runway, and pipeline progress—outweigh the lowlights but the company faces near-term cost, legal and access execution risks.Positive Updates
Strong Revenue Growth
Q1 net product revenue of $215.4M, up 17% from $184.7M in Q1 2025; management reiterated full-year net revenue guidance of $1.00B to $1.04B.
Negative Updates
Quarterly Market Access Headwinds and Seasonality
Q1 experienced higher-than-normal market access friction (plan changes, consumer switching, premium increases) that delayed patient starts and tempered seasonal patient additions despite healthy demand; management described Q1 headwinds as stronger than prior years.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 net product revenue of $215.4M, up 17% from $184.7M in Q1 2025; management reiterated full-year net revenue guidance of $1.00B to $1.04B.
Read all positive updates
Company Guidance
Harmony reiterated full‑year 2026 net revenue guidance of $1.00–$1.04 billion while reporting Q1 net product revenue of $215.4 million (up 17% vs. $184.7M a year ago), GAAP net income of $32.5M ($0.55/sh) versus $45.6M ($0.78) a year prior, average Q1 patients of ~8,500 (exit ~8,600) in an ~80,000‑patient diagnosed market, and $870.5M cash with $160M debt. Management emphasized IP protection (settlements with 6 of 7 ANDA filers preserving LOE through March 2030 inclusive of 6‑month pediatric exclusivity; Novitium amorphous patents to 2042; utility filings to 2044), pipeline and BD milestones: Pitolisant GR NDA in Q2 2026 with target PDUFA Q1 2027; Pitolisant HD Phase 3 enrolling (topline 2027; PDUFA 2028); BP‑205 Phase 1 SAD PK topline mid‑2026 with U.S. IND mid‑2026 and sleep‑deprived study in H2 2026; five ongoing Phase‑3 registrational trials across five CNS indications; EPX‑100 topline H1 2027 (PDUFA 2028); and pediatric TEMPO topline in H2 2026 (for 6‑month pediatric exclusivity). Q1 COGS were 20.7% of sales (vs. 17.3% prior), operating expenses were $133.6M (vs. $96.5M), and results included a $32M upfront licensing fee (~$0.45/sh) that dampened cash flow, with management intending to deploy capital for BD to drive revenue in 2028–2032.Harmony Biosciences Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 899.11M | 868.45M | 714.73M | 582.02M | 437.86M | 305.44M |
| Gross Profit | 688.25M | 670.11M | 557.92M | 460.79M | 354.37M | 249.92M |
| EBITDA | 233.34M | 255.05M | 233.41M | 221.51M | 146.87M | 80.46M |
| Net Income | 145.62M | 158.69M | 145.49M | 128.85M | 181.47M | 34.60M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.27B | 999.20M | 811.45M | 673.87M | 433.44M |
| Cash, Cash Equivalents and Short-Term Investments | 640.92M | 775.34M | 467.19M | 353.46M | 323.12M | 234.31M |
| Total Debt | 206.51M | 239.58M | 181.41M | 193.57M | 191.65M | 195.74M |
| Total Liabilities | 361.48M | 401.41M | 340.05M | 344.46M | 271.03M | 246.94M |
| Stockholders Equity | 910.35M | 870.22M | 659.15M | 466.99M | 402.84M | 186.51M |
Cash Flow | ||||||
| Free Cash Flow | 341.79M | 347.89M | 218.67M | 219.07M | 144.29M | 98.26M |
| Operating Cash Flow | 341.97M | 348.20M | 219.82M | 219.39M | 144.47M | 98.56M |
| Investing Cash Flow | -225.66M | -39.65M | -67.48M | -46.44M | -141.83M | -100.30M |
| Financing Cash Flow | -15.91M | -9.05M | -11.00M | -105.55M | 6.84M | 7.42M |
Harmony Biosciences Holdings Technical Analysis
Positive
29.99
Price Trends
30.29
Positive
31.43
Positive
32.44
Negative
Market Momentum
0.43
Negative
57.10
Neutral
82.87
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 29.99 is below the 20-day moving average (MA) of 30.96, below the 50-day MA of 30.29, and below the 200-day MA of 32.44, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 82.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRMY.
Harmony Biosciences Holdings Risk Analysis
Harmony Biosciences Holdings disclosed 68 risk factors in its most recent earnings report. Harmony Biosciences Holdings reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harmony Biosciences Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.91B | 12.79 | 17.19% | ― | 20.71% | -5.53% | |
64 Neutral | $2.75B | -1,155.90 | -1.41% | ― | 95.29% | 98.21% | |
61 Neutral | $1.46B | -76.29 | -4.83% | ― | 23.64% | -29.23% | |
59 Neutral | $1.33B | -23.54 | -38.11% | ― | 18.24% | -5.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $5.60B | -5.90 | -83.29% | ― | ― | 0.01% |
* Healthcare Sector Average
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Harmony Biosciences Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Harmony Biosciences Shareholders Approve Governance Measures at Meeting
Positive
May 14, 2026
Harmony Biosciences Holdings, Inc. held its 2026 Annual Meeting of Stockholders on May 14, 2026, with 50,381,309 shares represented, constituting a quorum for the proceedings. Stockholders voted on director elections, ratification of the independe...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Harmony Biosciences Names New CFO to Drive Growth
Positive
Apr 14, 2026
On April 14, 2026, Harmony Biosciences announced that Chief Financial Officer Sandip Kapadia stepped down the same day, with a separation agreement providing severance in exchange for customary releases and covenants. The company simultaneously ap...
Business Operations and StrategyExecutive/Board Changes
Harmony Biosciences Appoints Peter Anastasiou as Chief Operating Officer
Positive
Apr 2, 2026
On April 2, 2026, Harmony Biosciences named board member Peter Anastasiou as Senior Executive Vice President and Chief Operating Officer, prompting his same-day resignation from the board and aligning his extensive biotech and commercial leadershi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.