Harmony Biosciences Holdings (HRMY) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: N/A
• Average Volume (3M): 552.91K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.54
• Revenue Growth: 17.74%
• EPS Growth: 59.96%
• Country: US
• Employees: 268
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): 0.68
• Shares Outstanding: 57,532,600
• 10 Day Avg. Volume: 479,470
• 30 Day Avg. Volume: 552,915
• 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: 0.70
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 5.62
• 1Y Price Target: $50.83
• Price Target Upside: 35.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $42.00 ▲(11.91% Upside)

Harmony Biosciences receives a strong overall stock score due to its robust financial performance, positive technical indicators, and promising corporate developments. The company's strategic initiatives and pipeline advancements further enhance its growth outlook, despite some concerns about potential expenses and competitive challenges.

Positive Factors

Market Potential

The potential market for ZYN-002 is large, with a total addressable market of over $2 billion and no FDA approved treatments currently available.

Pipeline Development

The upcoming data readout for ZYN-002 in Fragile X Syndrome is an important milestone for Harmony Biosciences as it could validate the company's strategy of building its pipeline.

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.

Placebo Response

There is a risk of high placebo response impacting the success of ZYN-002 in Fragile X Syndrome.

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 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: 37.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 37.53 is above the 20-day moving average (MA) of 36.50, above the 50-day MA of 35.19, and above the 200-day MA of 34.30, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 47.87 is Neutral, 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	78 Outperform	$2.13B	12.10	27.58%	―	17.74%	59.96%
ARQT	58 Neutral	$1.86B	―	-57.33%	―	99.50%	65.91%
KYMR	57 Neutral	$2.91B	―	-33.26%	―	-49.51%	-44.09%
Sector *	51 Neutral	$7.90B	-0.33	-41.69%	2.23%	23.45%	-1.99%
RXRX	50 Neutral	$2.04B	―	-86.34%	―	30.14%	-10.08%
BEAM	50 Neutral	$1.66B	―	-41.94%	―	-82.90%	-155.64%
DNLI	45 Neutral	$2.23B	―	-39.69%	―	-100.00%	1.62%

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.

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.