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

Harmony Biosciences (NASDAQ:HRMY) released its quarterly earnings data on Wednesday. The company reported $0.81 earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $268.92 million for the quarter, compared to analyst estimates of $272.05 million. During the same quarter last year, the company earned $1.08 EPS. 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 Stock Performance

Shares of NASDAQ HRMY traded down $1.38 during midday trading on Thursday, hitting $33.04. 544,497 shares of the company’s stock were exchanged, compared to its average volume of 894,467. The company’s 50 day moving average price is $39.64 and its 200 day moving average price is $34.73. The company has a quick ratio of 3.45, a current ratio of 3.48 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $1.92 billion, a PE ratio of 10.74, a price-to-earnings-growth ratio of 0.30 and a beta of 1.00. 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 other Harmony Biosciences news, insider Kumar Budur sold 35,852 shares of the 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 sale, the insider directly owned 13,115 shares in the company, valued at $564,600.75. This represents a 73.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders have sold 72,406 shares of company stock valued at $3,108,520 in the last three months. 11.00% of the stock is currently owned by 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 2026 revenue guidance of $1.00 billion to $1.04 billion, indicating it remains on track to exceed $1 billion in WAKIX sales. Company results release
• Positive Sentiment: The company reported strong multiple-ascending-dose data for orexin agonist BP-205, which it said supports the drug’s potential best-in-class profile. This offers a promising pipeline development, though it remains investigational. BP-205 and Q3 results
• Neutral Sentiment: A CEO transition is beginning. The available report does not specify details that clarify the expected effect on strategy or execution. WAKIX outlook and CEO transition
• Negative Sentiment: Q3 adjusted earnings of $0.81 per share missed the $1.00 Zacks consensus estimate; revenue of $268.92 million also came in slightly below expectations of $272.05 million. EPS was lower than the year-ago quarter, despite revenue growth of 12.3%, which could weigh on sentiment. Q3 estimates comparison

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the company. Needham & Company LLC reiterated a “buy” rating and issued a $50.00 price target on shares of Harmony Biosciences in a research report on Monday, October 19th. Truist Financial raised their price target on shares of Harmony Biosciences from $29.00 to $34.00 and gave the company a “hold” rating in a report on Wednesday, August 5th. Zacks Research raised shares of Harmony Biosciences from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 15th. Weiss Ratings upgraded 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 set a $42.00 price objective on shares of Harmony Biosciences in a report on Thursday, October 1st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Harmony Biosciences currently has an average rating of “Moderate Buy” and an average target price 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.