Harmony Biosciences Holdings (HRMY)
NASDAQ:HRMY
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Harmony Biosciences Holdings
(NASDAQ:HRMY)
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Rating:76Outperform
Price Target:
$33.00
▲(10.04% Upside)
Action:ReiteratedDate:04/15/26
The score is driven primarily by strong fundamentals (high margins, low leverage, solid ROE) and a constructive earnings-call outlook with reiterated blockbuster-range 2026 guidance and multiple pipeline catalysts. Offsetting factors include the TTM cash-flow visibility issue, mixed/weak technical trend signals (below key longer-term moving averages with negative MACD), and execution risks from rising operating expenses and remaining IP/litigation uncertainty.
Positive Factors
High profitability and strong ROE
Sustained high gross and net margins with a ~25% ROE indicate durable pricing power and efficient cost structure for a specialty pharma. These fundamentals support long‑term internal funding for commercialization and R&D, improving resilience through reimbursement cycles and permitting reinvestment into pipeline and sales expansion.
Negative Factors
Rising operating expenses and higher R&D spend
A sharp and sustained increase in operating expenses driven by commercialization, R&D and litigation can compress margins and reduce free cash flow if revenue growth moderates. Elevated spend to support five+ Phase III programs raises burn and execution risk, making runway and ROI on these investments key for durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and strong ROE
Sustained high gross and net margins with a ~25% ROE indicate durable pricing power and efficient cost structure for a specialty pharma. These fundamentals support long‑term internal funding for commercialization and R&D, improving resilience through reimbursement cycles and permitting reinvestment into pipeline and sales expansion.
Read all positive factors
Harmony Biosciences Holdings (HRMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.69B
Dividend YieldN/A
Average Volume (3M)633.23K
Price to Earnings (P/E)13.6
Beta (1Y)1.03
Revenue Growth21.13%
EPS Growth50.86%
CountryUS
Employees268
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.38
Shares Outstanding57,840,614
10 Day Avg. Volume538,734
30 Day Avg. Volume633,233
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 Cap0.72
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda4.86
Forecast
1Y Price Target
$41.25Price Target Upside37.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)3.55
Revenue Forecast (FY)$1.02B
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:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call highlights strong commercial execution and clear momentum: record quarterly revenues (+21% YoY), robust cash generation ($348.2M) and a healthy cash balance ($882.5M); sustained patient adds and a reiterated blockbuster revenue guide for 2026 support a positive commercial outlook. The company is actively advancing a rich late-stage pipeline (5 Phase III programs) with multiple near-term catalysts (pitolisant GR NDA Q2 2026, pitolisant HD top line 2027, EPX-100 data H1 2027). Key challenges include a significant rise in operating expenses (~45% YoY), a near‑term drop in non-GAAP adjusted net income and EPS (~48% decline), ongoing ANDA litigation/IP uncertainty (one filer unresolved), and competitive/enrollment pressures in certain programs. Overall, achievements and forward-looking catalysts materially outweigh the risks, though litigation and elevated investment-driven expenses warrant monitoring.Positive Updates
Record Quarterly and Annual Revenues
Q4 2025 net product revenue of $243.8M, up 21% year-over-year from $201.3M; full year 2025 WAKIX net product revenue of $868.5M, marking the highest quarterly and strong annual performance.
Negative Updates
Decline in Non-GAAP Adjusted Net Income and EPS
Q4 non-GAAP adjusted net income was $33.4M or $0.57 per diluted share versus $64.2M or $1.10 in prior-year quarter — a decline of ~48% in adjusted net income and EPS year-over-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenues
Q4 2025 net product revenue of $243.8M, up 21% year-over-year from $201.3M; full year 2025 WAKIX net product revenue of $868.5M, marking the highest quarterly and strong annual performance.
Read all positive updates
Company Guidance
Harmony reiterated blockbuster guidance for WAKIX net revenue in 2026 of $1.0 billion to $1.04 billion (after an earlier, broader comment of $1.0–$1.40B), building on Q4 net product revenue of $243.8M (up 21% from $201.3M YoY) and full‑year 2025 WAKIX revenue of $868.5M, with Q4 marking a third consecutive quarter of ~400+ average patient adds and ~8,500 average patients on therapy against an ~80,000 diagnosed narcolepsy population; the company finished Q4 with $882.5M cash and generated $348.2M operating cash in 2025, reported Q4 operating expenses of $136.7M (vs. $91.1M prior year) and non‑GAAP net income of $33.4M ($0.57/diluted share), expects higher R&D spend in 2026 to support five ongoing Phase III registrational trials (with a potential sixth), remains on track for pitolisant GR NDA in Q2 2026 (PDUFA target Q1 2027) and other pipeline readouts (e.g., TEMPO H2 2026, EPX‑100 top line H1 2027), anticipates typical Q1 seasonality (higher gross‑to‑net and inventory drawdown), and notes IP progress with settlements with 6 of 7 ANDA filers and generic entry no sooner than March 2030 if pediatric exclusivity is granted.Harmony Biosciences Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 868.45M | 714.73M | 582.02M | 437.86M | 305.44M |
| Gross Profit | 670.11M | 557.92M | 460.79M | 354.37M | 249.92M |
| EBITDA | 255.05M | 233.41M | 221.51M | 146.87M | 80.46M |
| Net Income | 158.69M | 145.49M | 128.85M | 181.47M | 34.60M |
Balance Sheet | |||||
| Total Assets | 1.27B | 999.20M | 811.45M | 673.87M | 433.44M |
| Cash, Cash Equivalents and Short-Term Investments | 775.34M | 467.19M | 353.46M | 323.12M | 234.31M |
| Total Debt | 239.58M | 181.41M | 193.57M | 191.65M | 195.74M |
| Total Liabilities | 401.41M | 340.05M | 344.46M | 271.03M | 246.94M |
| Stockholders Equity | 870.22M | 659.15M | 466.99M | 402.84M | 186.51M |
Cash Flow | |||||
| Free Cash Flow | 347.89M | 218.67M | 219.07M | 144.29M | 98.26M |
| Operating Cash Flow | 348.20M | 219.82M | 219.39M | 144.47M | 98.56M |
| Investing Cash Flow | -39.65M | -67.48M | -46.44M | -141.83M | -100.30M |
| Financing Cash Flow | -9.05M | -11.00M | -105.55M | 6.84M | 7.42M |
Harmony Biosciences Holdings Technical Analysis
Neutral
29.99
Price Trends
29.86
Positive
33.63
Negative
33.11
Negative
Market Momentum
0.04
Negative
60.74
Neutral
82.13
Negative
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 29.99 is above the 20-day moving average (MA) of 28.17, above the 50-day MA of 29.86, and below the 200-day MA of 33.11, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 82.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.69B | 13.56 | 19.84% | ― | 21.13% | 50.86% | |
63 Neutral | $3.05B | -228.91 | -10.26% | ― | 129.21% | 80.35% | |
53 Neutral | $1.60B | ― | -6.93% | ― | 27.51% | 38.72% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.55B | -22.81 | -40.63% | ― | 58.12% | 24.08% | |
46 Neutral | $5.90B | -7.30 | -100.22% | ― | ― | 4.32% |
* Healthcare Sector Average
HRMY
Harmony Biosciences Holdings
29.99
1.49
5.23%
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Harmony Biosciences Holdings Corporate Events
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.