Harmony Biosciences (NASDAQ:HRMY) Posts Earnings Results, Misses Estimates By $0.28 EPS

Harmony Biosciences (NASDAQ:HRMY) posted its quarterly earnings data on Wednesday. The company reported $0.81 EPS for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.28), FiscalAI reports. Harmony Biosciences had a return on equity of 20.06% and a net margin of 18.88%. The company had revenue of $268.92 million during the quarter, compared to analyst estimates of $272.05 million. During the same period in the prior year, the firm earned $1.08 earnings per share. Harmony Biosciences’s revenue was up 12.3% compared to the same quarter last year.

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 Trading Down 6.3%

Shares of NASDAQ:HRMY traded down $2.34 during mid-day trading on Wednesday, hitting $34.68. The company had a trading volume of 1,634,178 shares, compared to its average volume of 892,213. The firm has a fifty day moving average price of $39.73 and a 200 day moving average price of $34.74. The company has a market capitalization of $2.02 billion, a PE ratio of 11.26, a price-to-earnings-growth ratio of 0.31 and a beta of 1.00. The company has a debt-to-equity ratio of 0.13, a current ratio of 3.48 and a quick ratio of 3.45. Harmony Biosciences has a one year low of $25.90 and a one year high of $43.49.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. UBS Group restated a “neutral” rating and set a $37.00 price target on shares of Harmony Biosciences in a report on Wednesday, August 5th. Truist Financial upped their price objective on shares of Harmony Biosciences from $29.00 to $34.00 and gave the company a “hold” rating in a research note on Wednesday, August 5th. Zacks Research upgraded shares of Harmony Biosciences from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 15th. Weiss Ratings raised shares of Harmony Biosciences from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, October 12th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $42.00 target price on shares of Harmony Biosciences in a report on Thursday, October 1st. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Harmony Biosciences currently has an average rating of “Moderate Buy” and an average price target of $48.00.

Harmony Biosciences News Summary

Here are the key news stories impacting Harmony Biosciences this week:

• Positive Sentiment: WAKIX generated $269 million in Q3 net revenue, supported by 400 net patient additions. Harmony reiterated its full-year revenue guidance of $1.0 billion to $1.04 billion, keeping it on track to exceed $1 billion in WAKIX revenue. Company announcement
• Positive Sentiment: The company announced strong multiple-ascending-dose data for its orexin agonist BP-205, supporting its potential best-in-class profile and offering a pipeline catalyst beyond WAKIX. Business Insider article
• Negative Sentiment: Q3 adjusted earnings of $0.81 per share missed estimates of about $1.00–$1.09, and revenue of $268.9 million was below the $272.1 million consensus. Earnings were also lower than the $1.08 per share reported a year earlier, despite revenue growing 12.3% year over year. Zacks article

Insider Transactions at Harmony Biosciences

In other Harmony Biosciences news, insider Kumar Budur sold 35,852 shares of the firm’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $43.05, for a total value of $1,543,428.60. Following the completion of the sale, the insider directly owned 13,115 shares in the company, valued at approximately $564,600.75. This trade represents a 73.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders have sold 72,406 shares of company stock worth $3,108,520 over the last 90 days. 11.00% of the stock is owned by corporate insiders.

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.