Pharming Group (PHAR) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 26.66K
• Price to Earnings (P/E): 1198.6
• Beta (1Y): 0.46
• Revenue Growth: 26.54%
• EPS Growth: N/A
• Country: US
• Employees: 404
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.10
• Shares Outstanding: 70,140,400
• 10 Day Avg. Volume: 29,337
• 30 Day Avg. Volume: 26,661
• PEG Ratio: -3.28
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 2.26
• P/FCF Ratio: -258.67
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 26.75
• 1Y Price Target: $39.50
• Price Target Upside: 128.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $17.50 ▲(1.39% Upside)

The score is held back most by extremely expensive valuation (P/E 1178.8) and only middling near-term technicals (below 20/50-day averages with RSI ~41). Offsetting these, fundamentals show solid revenue/gross margin strength and improving cash flow, and the latest earnings call was constructive with raised revenue guidance and a sharp operating profit improvement, though profitability metrics (net margin and ROE) remain weak.

Positive Factors

High Gross Margin

An 89.9% gross margin reflects Pharming's efficient recombinant protein manufacturing and pricing power. Durable margin advantage supports reinvestment in R&D and commercialization, cushioning profitability while the company scales rare-disease launches over the next 2–6 months.

Improving Cash Generation

Rising operating cash flow and a $168.9M cash stock provide durable funding for trials and global rollouts without immediate financing. Strong free cash flow trends improve financial flexibility to support pipeline development and geographic expansion over the medium term.

Advancing Pipeline and Upgraded Guidance

Raised 2026 guidance and progressing PID and mitochondrial programs signal structural growth optionality beyond current products. Successful mid‑late stage readouts would materially expand addressable markets and underpin sustainable revenue growth over the next 2–6 months into 2027 catalysts.

Negative Factors

Very Low Net Profitability

A near‑zero net margin and very low ROE indicate earnings are not translating into shareholder returns. This structural profitability weakness constrains ability to self‑fund growth, reduces resilience to setbacks, and limits long‑term capital allocation flexibility.

Planned RUCONEST International Withdrawals

Withdrawing RUCONEST from select markets reduces geographic diversification and shifts revenue concentration toward fewer regions. That structural contraction of market footprint can weaken pricing leverage and long‑term growth visibility if not offset by new market entries or product approvals.

Product Concentration Risk

Revenue is heavily driven by two products, leaving the company exposed if either faces reimbursement, regulatory or competitive setbacks. Until pipeline programs convert to approved, diversified revenue streams, concentration is a durable risk to sustained top‑line stability.

Pharming Group Business Overview & Revenue Model

Company Description

Pharming Group N.V., a biopharmaceutical company, develops and commercialize protein replacement therapies and precision medicines for the treatment of rare diseases and unmet medical needs in the United States, Europe, and internationally. The company's lead product is Ruconest, a recombinant human C1 esterase inhibitor that is used for the treatment of acute hereditary angioedema. It also engages in the development of rhC1INH for the treatment of pre-eclampsia, acute kidney injury, and COVID-19; leniolisib, a phosphoinositide 3-kinase delta (PI3K delta) to treat patients with activated PI3K delta syndrome; and alpha-glucosidase therapy for the treatment of pompe and fabry diseases. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of hereditary angioedema. Pharming Group N.V. is headquartered in Leiden, the Netherlands.

How the Company Makes Money

Pharming generates revenue primarily through the sales of its flagship product, Ruconest, which is marketed in various regions, including the United States and Europe. The company earns income from the direct sale of this medication to healthcare providers and through agreements with specialty pharmacies. Additionally, Pharming may generate revenue from licensing agreements and partnerships with other pharmaceutical companies, which can include upfront payments, milestone payments, and royalties on future sales. Key collaborations and strategic partnerships can significantly enhance its earnings potential, particularly as the company expands its product pipeline and addresses more therapeutic areas.

Pharming Group Financial Statement Overview

Summary

Revenue is growing (TTM +6.6%) with very strong gross margin (89.9%), and free cash flow improved sharply (TTM +68.5%). However, profitability remains weak with a ~0.1% net margin and very low ROE (0.16%), limiting the score despite a stable balance sheet and moderate leverage (D/E 0.49).

Income Statement

Pharming Group's income statement shows a positive revenue growth trend with a 6.6% increase in TTM. The gross profit margin is strong at 89.9%, indicating efficient cost management. However, the net profit margin is very low at 0.1%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved over the years, but remain moderate, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.49, indicating moderate leverage. The equity ratio is healthy, suggesting a strong capital structure. However, the return on equity is very low at 0.16%, highlighting inefficiencies in generating returns from equity.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 68.5% in TTM, indicating better cash management. However, the operating cash flow to net income ratio is 0.61, suggesting that not all earnings are translating into cash flow. The free cash flow to net income ratio is strong at 0.99, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.27M	297.20M	245.32M	205.62M	198.87M	212.17M
Gross Profit	325.69M	261.80M	220.10M	188.06M	177.73M	188.63M
EBITDA	44.73M	16.32M	9.88M	33.53M	48.78M	58.35M
Net Income	382.00K	-11.84M	-10.55M	13.67M	16.00M	37.75M
Balance Sheet
Total Assets	403.57M	399.99M	462.85M	425.80M	397.31M	342.55M
Cash, Cash Equivalents and Short-Term Investments	141.54M	167.89M	213.42M	207.34M	191.92M	167.94M
Total Debt	111.52M	112.31M	171.54M	166.69M	161.76M	132.58M
Total Liabilities	178.15M	178.92M	244.07M	221.16M	204.40M	192.39M
Stockholders Equity	225.42M	221.06M	218.78M	204.64M	192.92M	150.16M
Cash Flow
Free Cash Flow	50.70M	-2.59M	-18.77M	20.48M	21.13M	68.33M
Operating Cash Flow	51.32M	-1.79M	-17.30M	22.46M	37.84M	83.63M
Investing Cash Flow	14.51M	31.62M	-129.39M	5.32M	-21.30M	-15.63M
Financing Cash Flow	267.99K	-34.41M	-1.04M	-4.98M	-27.95M	60.69M

Pharming Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.26
• 50DMA: Negative
• 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 PHAR, the sentiment is Negative. The current price of 17.26 is below the 20-day moving average (MA) of 18.79, below the 50-day MA of 17.72, and above the 200-day MA of 13.59, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 37.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHAR.

Pharming Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRAX	60 Neutral	$8.47B	-24.06	-75.20%	―	364.98%	-25.33%
PHAR	58 Neutral	$1.19B	1,198.61	0.44%	―	26.54%	―
TRVI	57 Neutral	$1.41B	-30.92	-36.87%	―	―	15.84%
ORIC	54 Neutral	$1.09B	-6.35	-39.73%	―	―	4.29%
SPRY	54 Neutral	$1.02B	-12.53	-45.92%	―	5459.66%	-59.70%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRME	50 Neutral	$685.94M	-2.58	-112.34%	―	647.13%	26.79%

Pharming Group Corporate Events

Pharming Group Sets 2026 Guidance and Showcases Rare Disease Pipeline at Investor Day

On February 3, 2026, Pharming Group issued 2026 financial guidance and used its virtual Investor Day to spotlight its advancing rare disease pipeline, particularly two key clinical programs targeting primary immunodeficiencies (PIDs) with immune dysregulation and mitochondrial DNA‑driven mitochondrial disease. The company forecast total revenues of US$405 million to US$425 million for 2026, implying 8% to 13% growth driven mainly by strong momentum in Joenja and continued RUCONEST sales, against operating expenses of US$330 million to US$335 million largely reflecting increased R&D outlays for ongoing Phase II trials of leniolisib in broader PID and common variable immunodeficiency populations and the pivotal FALCON trial of the newly named mitochondrial disease candidate napazimone (KL1333), with key readouts expected in 2026 and 2027 that could strengthen Pharming’s position in the rare disease market and create significant long‑term value for stakeholders if clinical results are positive.

The most recent analyst rating on (PHAR) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Pharming Group stock, see the PHAR Stock Forecast page.

Pharming Group Beats 2025 Revenue Guidance and Sets February Investor Day

On January 8, 2026, Pharming Group reported preliminary, unaudited 2025 revenues of about US$376 million, surpassing its upgraded guidance range of US$365–375 million and marking roughly 27% year‑on‑year growth, driven by continued expansion of hereditary angioedema drug RUCONEST® and strong U.S.-led uptake and geographic rollout of Joenja®. Operating expenses for 2025 are expected to land within the previously guided US$304–308 million range, highlighting tighter cost control, while the company prepares to publish full fourth-quarter and full‑year results on March 12, 2026 and to host a virtual Investor Day on February 3, 2026, where management and external clinical experts will update investors on Pharming’s advancing pipeline in primary immunodeficiencies and mitochondrial disease and outline 2026 financial guidance, underlining the group’s ambition to sustain growth and strengthen its rare‑disease positioning.

The most recent analyst rating on (PHAR) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Pharming Group stock, see the PHAR Stock Forecast page.

Pharming Group Reports Strong Q3 2025 Financial Growth and Strategic Updates

Pharming Group reported significant financial growth in the third quarter of 2025, with a 30% increase in total revenues to $97.3 million compared to the previous year. RUCONEST® and Joenja® saw substantial revenue increases, driven by patient growth and new market entries. The company also announced strategic decisions, including withdrawing RUCONEST® from non-U.S. markets to focus on more profitable opportunities and a leadership change with Leverne Marsh set to become Chief Commercial Officer in January 2026. These developments, alongside a raised revenue guidance for 2025, underscore Pharming’s strategic focus on enhancing its market position and addressing unmet medical needs.

The most recent analyst rating on (PHAR) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Pharming Group stock, see the PHAR Stock Forecast page.