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Harmony Biosciences Holdings (HRMY)
NASDAQ:HRMY
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Harmony Biosciences Holdings
(NASDAQ:HRMY)
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Rating:81Outperform
Price Target:
$41.00
▲(8.27% Upside)
Harmony Biosciences Holdings scores well due to its strong financial performance and positive earnings call, which highlighted significant revenue growth and a robust pipeline. The technical analysis suggests bullish momentum, although overbought signals could indicate a short-term pullback. The valuation is attractive, with a low P/E ratio suggesting potential undervaluation. The corporate event setback was already factored into the earnings call analysis.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.
Pipeline Advancements
Advancements in the pipeline, including new trials, enhance the company's future growth prospects and potential market leadership in neurological therapies.
Cash Generation
Strong cash generation improves financial flexibility, allowing for strategic investments and resilience against market fluctuations.
Negative Factors
Fragile X Syndrome Study Setback
The setback in the Fragile X syndrome study could delay product development and impact the company's ability to expand its therapeutic offerings.
Increased Operating Expenses
Rising operating expenses may pressure profit margins and require careful management to sustain financial health and growth.
Slowing Revenue Growth Rate
A moderating growth rate could indicate market saturation or increased competition, potentially impacting long-term revenue expansion.
Harmony Biosciences Holdings (HRMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.16B
Dividend YieldN/A
Average Volume (3M)596.66K
Price to Earnings (P/E)11.9
Beta (1Y)1.04
Revenue Growth21.13%
EPS Growth50.86%
CountryUS
Employees268
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.87
Shares Outstanding57,596,360
10 Day Avg. Volume413,249
30 Day Avg. Volume596,663
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)2.97
Price to Sales (P/S)2.74
P/FCF Ratio8.95
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda4.41
Forecast
1Y Price Target
$43.83Price Target Upside15.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Harmony Biosciences Holdings Business Overview & Revenue Model
Company DescriptionHarmony 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 MoneyHarmony Biosciences generates revenue primarily through the sale of its pharmaceutical products, particularly its marketed therapies for narcolepsy. The company earns money by selling its drugs through various distribution channels, including pharmacies and healthcare providers. Additionally, Harmony may engage in strategic partnerships with other pharmaceutical companies or healthcare organizations to enhance its product offerings, expand market reach, and facilitate research and development. The success of its revenue model is significantly influenced by the effectiveness of its therapies, the size of the target patient population, pricing strategies, and market access efforts.
Harmony Biosciences Holdings Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in revenue growth and patient adds, showcasing the company's robust cash position and promising pipeline advancements. However, challenges were noted in the Fragile X syndrome study and increased operating expenses.Q3-2025 Updates
Positive Updates
Record Revenue Growth
Harmony Biosciences reported $239.5 million in net revenue for Q3 2025, representing a 29% growth year-over-year. The company raised its net revenue guidance for the year from $820 million to $860 million, now expecting $845 million to $865 million.
Strong Patient Adds for WAKIX
The quarter saw the highest number of quarterly patient adds for WAKIX since launch, with an average of 500 new patients, resulting in 8,100 patients on WAKIX at the end of Q3.
Robust Cash Position
The company reported robust cash generation of $106 million, bringing their balance sheet to $778 million as of September 30, 2025.
Pipeline Advancements
The IND for pitolisant HD was submitted to the FDA, and two Phase III trials are on track for initiation by the end of the year. The company expects to have five Phase III registrational studies in five distinct indications by year-end.
Negative Updates
Fragile X Syndrome Study Setback
The ZYN002 Phase III RECONNECT study in Fragile X syndrome did not meet the primary endpoint due to higher-than-expected placebo response, leading to a pause in the program for 22q deletion syndrome.
Increased Operating Expenses
Total operating expenses for Q3 2025 were $114.3 million compared to $81.6 million in the same quarter of 2024, driven by pipeline advancement investments and a $15 million milestone for the ZYN002 trial.
Company Guidance
During Harmony Biosciences' third quarter 2025 financial results call, the company reported a strong performance with $239.5 million in net revenue, marking a 29% year-over-year growth. This growth was driven by the addition of 500 new patients, resulting in an average of 8,100 patients on WAKIX by the end of Q3. Consequently, Harmony raised its full-year net revenue guidance to between $845 million and $865 million, up from the previous range of $820 million to $860 million. The company generated $106 million in cash during the quarter, bolstering its balance sheet to $778 million. Harmony's pipeline remains robust, with the IND for pitolisant HD submitted to the FDA and two Phase III trials set to begin by year-end. The company aims to position WAKIX as a $1 billion-plus blockbuster in narcolepsy, while also advancing its late-stage pipeline with five ongoing Phase III trials across distinct indications.Harmony Biosciences Holdings Financial Statement Overview
Summary
Harmony Biosciences Holdings demonstrates strong financial health with robust profitability, efficient operations, and a solid balance sheet. The company has shown consistent revenue growth and improved cash flow metrics, although the pace of growth has moderated. The low leverage and strong equity position provide a stable foundation for future growth, though a more aggressive strategy could potentially accelerate expansion.Income Statement
Harmony Biosciences Holdings shows strong revenue growth with a TTM increase of 6.92% and consistent profitability, evidenced by a high gross profit margin of 78.34% and a net profit margin of 23.42%. The EBIT and EBITDA margins are also robust at 31.22% and 34.31%, respectively, indicating efficient operations. However, the growth rate has slowed compared to previous years, which may warrant attention.Balance Sheet
The company's balance sheet is solid with a low debt-to-equity ratio of 0.22, reflecting prudent financial management. The return on equity is strong at 26.32%, showcasing effective use of equity to generate profits. The equity ratio stands at 69.12%, indicating a healthy capital structure. However, the decrease in leverage compared to previous years suggests a more conservative approach, which might limit aggressive expansion.Cash Flow
Cash flow metrics are positive, with a significant free cash flow growth rate of 14.75% TTM, indicating improved cash generation. The operating cash flow to net income ratio of 1.44 and a free cash flow to net income ratio of 0.99 suggest strong cash conversion efficiency. The company has improved its cash flow position significantly over the years, enhancing financial flexibility.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 825.94M | 714.73M | 582.02M | 437.86M | 305.44M | 159.74M |
| Gross Profit | 641.74M | 557.92M | 460.79M | 354.37M | 249.92M | 132.00M |
| EBITDA | 266.02M | 233.41M | 221.51M | 146.87M | 80.46M | 1.51M |
| Net Income | 185.68M | 145.49M | 128.85M | 181.47M | 34.60M | -36.94M |
Balance Sheet | ||||||
| Total Assets | 1.21B | 999.20M | 811.45M | 673.87M | 433.44M | 427.07M |
| Cash, Cash Equivalents and Short-Term Investments | 672.58M | 467.19M | 353.46M | 323.12M | 234.31M | 228.63M |
| Total Debt | 169.73M | 181.41M | 193.57M | 191.65M | 195.74M | 194.25M |
| Total Liabilities | 373.10M | 340.05M | 344.46M | 271.03M | 246.94M | 329.89M |
| Stockholders Equity | 835.12M | 659.15M | 466.99M | 402.84M | 186.51M | 97.18M |
Cash Flow | ||||||
| Free Cash Flow | 296.89M | 218.67M | 219.07M | 144.29M | 98.26M | -4.99M |
| Operating Cash Flow | 297.61M | 219.82M | 219.39M | 144.47M | 98.56M | -2.98M |
| Investing Cash Flow | -29.20M | -67.48M | -46.44M | -141.83M | -100.30M | -2.00M |
| Financing Cash Flow | -8.78M | -11.00M | -105.55M | 6.84M | 7.42M | 209.16M |
Harmony Biosciences Holdings Technical Analysis
Positive
37.87
Price Trends
35.52
Positive
33.41
Positive
33.28
Positive
Market Momentum
0.38
Positive
55.55
Neutral
59.78
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 37.87 is below the 20-day moving average (MA) of 38.22, above the 50-day MA of 35.52, and above the 200-day MA of 33.28, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 59.78 is Neutral, 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 67 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.16B | 11.93 | 25.93% | ― | 21.13% | 50.86% | |
60 Neutral | $3.62B | -84.29 | -28.17% | ― | 129.21% | 80.35% | |
57 Neutral | $1.42B | -29.55 | -36.18% | ― | 58.12% | 24.08% | |
56 Neutral | $5.51B | -15.01 | -95.40% | ― | ― | 4.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $1.70B | -56.57 | -7.52% | ― | 27.51% | 38.72% |
* Healthcare Sector Average
HRMY
Harmony Biosciences Holdings
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4.01
11.84%
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IMCR
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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.