Harmony Biosciences (NASDAQ:HRMY) Releases Earnings Results, Misses Expectations By $0.28 EPS

Harmony Biosciences (NASDAQ:HRMY) posted its quarterly earnings results on Wednesday. The company reported $0.81 EPS for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.28), FiscalAI reports. The company had revenue of $268.92 million during the quarter, compared to the consensus estimate of $272.05 million. Harmony Biosciences had a return on equity of 18.55% and a net margin of 18.05%. The company’s revenue for the quarter was up 12.3% compared to the same quarter last year. During the same period last year, the firm posted $1.08 EPS.

Here are the key takeaways from Harmony Biosciences’ conference call:

• WAKIX growth remains strong: Third-quarter net revenue rose to $269 million, with 400 net patient additions and about 9,350 average patients. Harmony reiterated full-year guidance of $1 billion–$1.04 billion and said it expects to exceed $1 billion for the first time.
• BP-205 showed encouraging early safety and pharmacokinetic results: In the 14-day multiple-ascending-dose study, the company reported once-daily dosing potential, no serious or severe treatment-emergent adverse events, and mild on-target effects that did not lead to discontinuations. A sleep-deprived volunteer study is expected to report data in Q1 2027, with Phase II studies planned for mid-2027; efficacy has not yet been established.
• WAKIX patent litigation remains a key uncertainty: Harmony expressed confidence in protecting exclusivity through March 2030, but court decisions are pending, including an expected ruling around February 2027 and a preliminary-injunction hearing in January. The company has settled with six of seven ANDA filers.
• Costs pressured earnings: Net income fell to $48 million from $51 million a year earlier, while cost of products sold rose to 30% of revenue from 25%. Harmony attributed the changes mainly to a new royalty and a $25 million milestone charge.
• Harmony is pursuing business development to diversify growth: With more than $1 billion in cash and investments, the company is evaluating multiple potential deals, including near-term revenue assets and longer-term CNS pipeline opportunities. No transaction was announced.

Harmony Biosciences Price Performance

HRMY traded up $0.61 on Friday, hitting $33.08. 234,890 shares of the company’s stock traded hands, compared to its average volume of 895,713. The company’s 50 day simple moving average is $39.49 and its 200-day simple moving average is $34.71. The firm has a market cap of $1.93 billion, a price-to-earnings ratio of 10.93, a P/E/G ratio of 0.28 and a beta of 1.00. Harmony Biosciences has a one year low of $25.90 and a one year high of $43.49. The company has a current ratio of 3.44, a quick ratio of 3.45 and a debt-to-equity ratio of 0.12.

Analysts Set New Price Targets

Several analysts have issued reports on HRMY shares. Needham & Company LLC reaffirmed a “buy” rating and issued a $50.00 target price on shares of Harmony Biosciences in a research note on Monday, October 19th. Oppenheimer restated an “outperform” rating on shares of Harmony Biosciences in a report on Thursday, September 24th. WBB Securities raised shares of Harmony Biosciences to a “hold” rating in a research note on Friday, October 23rd. Mizuho set a $49.00 target price on shares of Harmony Biosciences in a report on Thursday, October 29th. Finally, UBS Group reiterated a “neutral” rating and issued a $37.00 target price on shares of Harmony Biosciences in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $48.00.

Insider Transactions at Harmony Biosciences

In other news, insider Kumar Budur sold 35,852 shares of the stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of $43.05, for a total transaction of $1,543,428.60. Following the completion of the transaction, the insider directly owned 13,115 shares in the company, valued at approximately $564,600.75. This represents a 73.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last 90 days, insiders have sold 72,406 shares of company stock valued at $3,108,520. Insiders own 11.00% of the company’s stock.

Harmony Biosciences Company Profile

Harmony Biosciences Holdings, Inc is a commercial-stage biopharmaceutical company focused on developing and providing therapies for patients with rare neurological disorders. The company’s activities center on conditions involving sleep-wake regulation and other central nervous system disorders where treatment options may be limited.

Harmony’s principal product is WAKIX (pitolisant), an oral, non-scheduled treatment that acts as a histamine-3 receptor antagonist/inverse agonist. In the United States, WAKIX is approved for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy and for excessive daytime sleepiness in pediatric patients aged 6 and older with narcolepsy.