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

Harmony Biosciences (NASDAQ:HRMY) released its quarterly earnings data on Wednesday. The company reported $0.81 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.28), FiscalAI reports. Harmony Biosciences had a net margin of 18.88% and a return on equity of 20.06%. The firm had revenue of $268.92 million for the quarter, compared to the consensus estimate of $272.05 million. During the same quarter in the prior year, the firm earned $1.08 EPS. The company’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 Stock Down 6.3%

Shares of NASDAQ HRMY traded down $2.34 during trading on Wednesday, hitting $34.68. The stock 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 of $39.73 and a two-hundred day moving average of $34.74. The company has a market capitalization of $2.02 billion, a PE ratio of 11.26, a PEG 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 12 month low of $25.90 and a 12 month high of $43.49.

Insider Buying and Selling at Harmony Biosciences

In related news, insider Kumar Budur sold 35,852 shares of the business’s stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $43.05, for a total transaction of $1,543,428.60. Following the transaction, the insider directly owned 13,115 shares in the company, valued at approximately $564,600.75. The trade was a 73.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 company insiders.

Trending Headlines about Harmony Biosciences

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

Analyst Ratings Changes

HRMY has been the subject of several research reports. LADENBURG THALM/SH SH initiated coverage on shares of Harmony Biosciences in a research report on Thursday, October 15th. They issued a “buy” rating and a $55.00 price target for the company. Zacks Research upgraded shares of Harmony Biosciences from a “hold” rating to a “strong-buy” rating in a report on Thursday, October 15th. Oppenheimer reissued an “outperform” rating on shares of Harmony Biosciences in a research report on Thursday, September 24th. UBS Group restated a “neutral” rating and issued a $37.00 target price on shares of Harmony Biosciences in a report on Wednesday, August 5th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $55.00 price target on shares of Harmony Biosciences in a research report on Tuesday, October 13th. 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. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $48.00.

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.