Harmony Biosciences Holdings (HRMY) AI Stock Analysis

• Market Cap: $1.96B
• Dividend Yield: N/A
• Average Volume (3M): 718.10K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.51
• Revenue Growth: 20.62%
• EPS Growth: 14.08%
• Country: US
• Employees: 268
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): 0.78
• Shares Outstanding: 57,424,320
• 10 Day Avg. Volume: 678,797
• 30 Day Avg. Volume: 718,099
• PEG Ratio: 2.92
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.57
• Price Target Upside: 50.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $38.00 ▲( 11.21% Upside)

Harmony Biosciences Holdings demonstrates strong financial performance with robust revenue and profit growth, supported by a stable balance sheet and efficient operations. The technical analysis suggests potential overbought conditions, which may pose short-term challenges. The company's valuation is attractive, indicating potential undervaluation. Positive earnings call highlights and strategic board appointments further bolster the company's outlook. However, increased operating expenses and seasonal dynamics warrant caution. Overall, the stock presents a solid investment opportunity with strengths in financial performance and growth potential, tempered by technical and operational considerations.

Positive Factors

Financial Performance

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.

Pipeline Development

Harmony’s late-stage pipeline remains on the cusp of multiple high-impact catalysts, including Phase 3 data in Fragile X syndrome, registrational studies in rare epilepsies, and the advancement of next-generation pitolisant formulations.

Product Demand

The average number of patients on Wakix therapy increased, indicating growing demand for the product.

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.

Patent Litigation

Management emphasized Wakix’s durable growth outlook despite potential patent litigation.

Harmony Biosciences Holdings Business Overview & Revenue Model

Company Description

Harmony Biosciences Holdings, Inc. (HRMY) is a commercial-stage pharmaceutical company dedicated to developing and commercializing innovative therapies for patients living with rare neurological disorders. The company primarily focuses on central nervous system (CNS) disorders, offering solutions that address unmet medical needs. Harmony Biosciences is headquartered in the United States and is known for its flagship product, Wakix (pitolisant), which is used to treat excessive daytime sleepiness in adult patients with narcolepsy.

How the Company Makes Money

Harmony Biosciences generates revenue primarily through the sales of its core product, Wakix (pitolisant), which is a first-in-class medication used to address excessive daytime sleepiness associated with narcolepsy. The company earns money by marketing and distributing Wakix to healthcare providers and institutions, who then prescribe it to patients. Harmony Biosciences benefits from exclusivity agreements and patents that limit competition, allowing it to capitalize on its innovative product within a niche market. Additionally, the company may engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, although these are not the primary sources of revenue.

Harmony Biosciences Holdings Financial Statement Overview

Summary

Harmony Biosciences shows strong financial health with solid revenue growth, high profitability margins, and a stable balance sheet. The company has low leverage and efficient cash flow management, though monitoring future free cash flow trends is advisable.

Income Statement

Harmony Biosciences has demonstrated strong growth with a Revenue Growth Rate of 22.8% from 2023 to 2024, indicating robust expansion. The Gross Profit Margin of 78.06% and Net Profit Margin of 20.36% for 2024 reflect excellent profitability. The EBIT margin has slightly decreased from the previous year, but the consistent EBITDA margin signifies operational efficiency.

Balance Sheet

The company maintains a solid financial position with a Debt-to-Equity Ratio of 0.025, showcasing low leverage risk. The ROE of 22.06% indicates strong returns to shareholders. The Equity Ratio of 65.97% suggests a stable capital structure. However, the increase in total debt, albeit small, should be monitored.

Cash Flow

Harmony Biosciences has shown a slight decline in Free Cash Flow Growth Rate. However, the Operating Cash Flow to Net Income Ratio of 1.51 highlights strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio remains robust, underscoring efficient cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
744.85M	714.73M	582.02M	437.86M	305.44M	159.74M
	Gross Profit
577.57M	557.92M	460.79M	354.37M	249.92M	132.00M
	EBIT
195.04M	190.83M	192.03M	120.19M	68.70M	3.68M
	EBITDA
222.47M	233.41M	221.51M	143.57M	106.37M	1.51M
	Net Income Common Stockholders
152.72M	145.49M	128.85M	181.47M	34.60M	-51.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
372.35M	467.19M	353.46M	323.12M	234.31M	228.63M
	Total Assets
846.99M	999.20M	811.45M	673.87M	433.44M	427.07M
	Total Debt
193.06M	179.27M	193.57M	191.65M	191.98M	194.25M
	Net Debt
-139.92M	-273.74M	-118.09M	-52.14M	-42.33M	-34.38M
	Total Liabilities
331.59M	340.05M	344.46M	271.03M	246.94M	329.89M
	Stockholders Equity
515.39M	659.15M	466.99M	402.84M	186.51M	97.18M
Cash Flow		Free Cash Flow
221.39M	218.67M	219.07M	104.29M	-1.74M	-4.99M
	Operating Cash Flow
222.67M	219.82M	219.39M	144.47M	98.56M	-2.98M
	Investing Cash Flow
-58.94M	-67.48M	-46.44M	-141.83M	-100.30M	-2.00M
	Financing Cash Flow
-7.71M	-11.00M	-105.55M	6.84M	7.42M	209.16M

Harmony Biosciences Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRMY, the sentiment is Neutral. The current price of 34.17 is above the 20-day moving average (MA) of 32.95, above the 50-day MA of 31.90, and below the 200-day MA of 34.66, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 34.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HRMY.

Harmony Biosciences Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	76 Outperform	$1.96B	13.01	24.71%	―	20.62%	14.08%
KYMR	54 Neutral	$1.92B	―	-32.17%	―	-25.85%	-23.89%
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
RXRX	52 Neutral	$1.66B	―	-86.10%	―	29.32%	-11.00%
ARQT	47 Neutral	$1.67B	―	-70.58%	―	100.03%	64.22%
DNLI	45 Neutral	$1.95B	―	-35.21%	―	-100.00%	-144.79%
BEAM	45 Neutral	$1.69B	―	-38.04%	―	-82.38%	-164.76%

Harmony Biosciences Holdings Corporate Events

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.

Harmony Biosciences Appoints Ron Philip to Board

On April 2, 2025, Harmony Biosciences appointed Ron Philip to its Board of Directors, filling a vacancy left by Jack Bech Nielsen’s resignation in June 2024. Philip, who brings extensive experience from his roles at Orbital Therapeutics and Spark Therapeutics, will serve on the Audit and Nominating and Corporate Governance Committees. His appointment is expected to support Harmony’s growth and pipeline expansion, aligning with the company’s focus on innovative therapies for rare neurological diseases.

Harmony Biosciences Appoints New Chief Commercial Officer

On March 24, 2025, Harmony Biosciences announced the departure of Jeffrey Dierks as Chief Commercial Officer, effective March 31, 2025, and the appointment of Adam Zaeske as his successor. Zaeske, with over 25 years of experience in the pharmaceutical industry, is expected to lead the company’s commercial strategy and expansion efforts, building on the success of WAKIX and advancing Harmony’s late-stage pipeline assets.