Latest news with #HRMY
Yahoo
13 hours ago
- Business
- Yahoo
Harmony Biosciences Holdings, Inc. (HRMY): A Bull Case Theory
We came across a bullish thesis on Harmony Biosciences Holdings, Inc. (HRMY) on Capital Curiosity's Substack by Taylor Nichols. In this article, we will summarize the bulls' thesis on HRMY. Harmony Biosciences Holdings, Inc. (HRMY)'s share was trading at $35.03 as of 5th June. HRMY's trailing and forward P/E were 13.37 and 9.45 respectively according to Yahoo Finance. Copyright: zneb076 / 123RF Stock Photo Harmony Biosciences stands out as an overlooked gem in the small-cap biotech space, combining strong financials with pipeline potential in a niche therapeutic area. With a $2 billion market cap and a focus on rare neurological diseases, Harmony's flagship drug WAKIX for narcolepsy has underpinned impressive fundamentals—35% revenue CAGR since 2020, 25% net margins, and consistent free cash flow conversion above 30%. Despite these metrics, the stock trades at just 13x earnings and an EV/EBITDA of 7.9x, reflecting investor scepticism largely tied to single-product dependency and unresolved legal risks from 2023 fraud allegations. Still, Harmony boasts over $480 million in cash, negligible debt, and a stable share count, which enhances confidence in long-term shareholder returns. While WAKIX remains the core revenue driver, the company is aggressively diversifying through M&A, including the Zynerba and Epygenix acquisitions, bringing promising assets like ZYN002 for Fragile X Syndrome into the pipeline. Phase 3 data expected in Q3 2025 could catalyze upside, alongside the development of Pitolisant HD and other preclinical candidates. A DCF valuation incorporating conservative assumptions yields share prices between $38 and $62, implying a substantial upside from current levels. Analyst sentiment is bullish, with eight of nine recent ratings being buys and a $51 average price target. Although risks like competition from Jazz Pharmaceuticals, FDA hurdles, and prolonged legal overhang remain, Harmony's profitability, cash strength, and strategic execution offer investors a compelling asymmetrical opportunity. For those seeking exposure to a profitable, underappreciated rare disease player with both pipeline and financial momentum, Harmony merits close attention. Previously, we covered a on Harmony Biosciences by Long-Access-2143 in April 2025, which aligns with Taylor Nichols' analysis. The stock has seen an appreciation of approximately 13% since then. Both highlight WAKIX's strength and undervaluation, while Long-Access-2143 stresses the mispricing post short-seller attack and details a WAKIX-driven DCF, Nichols places more emphasis on pipeline expansion and cash strength. Together, they reinforce Harmony's appeal as a profitable, underappreciated biotech. Harmony Biosciences Holdings, Inc. (HRMY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held HRMY at the end of the first quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of HRMY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Harmony Biosciences settles generic drug litigation, strengthens patent
Harmony Biosciences (HRMY) announced a settlement agreement with Lupin Limited, resolving patent infringement litigation related to Lupin's Abbreviated New Drug Application for a generic version of WAKIX. Under the agreement, Lupin will receive a license to launch its generic product no earlier than January 2030 (or July 2030 with pediatric exclusivity), or earlier under certain circumstances. Harmony asserted multiple patents covering WAKIX, its FDA-approved treatment for excessive daytime sleepiness or cataplexy in adults and pediatric patients with narcolepsy. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on HRMY: Disclaimer & DisclosureReport an Issue Harmony Biosciences Settles Patent Dispute with Lupin Harmony Biosciences assumed with an Outperform at Oppenheimer Harmony Biosciences Holds 2025 Annual Stockholders Meeting Harmony Biosciences price target raised to $48 from $44 at Mizuho Harmony Biosciences Holdings: Strong Market Position and Growth Potential Justify Buy Rating Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-04-2025
- Business
- Yahoo
Harmony Biosciences Holdings, Inc. (HRMY): A Bull Case Theory
We came across a bullish thesis on Harmony Biosciences Holdings, Inc. (HRMY) on Value Investing Subreddit Page by Long-Access-2143. In this article, we will summarize the bulls' thesis on HRMY. Harmony Biosciences Holdings, Inc. (HRMY)'s share was trading at $30.97 as of April 3rd. HRMY's trailing and forward P/E were 12.34 and 8.72 respectively according to Yahoo Finance. Harmony Biosciences, a commercial-stage pharmaceutical company focused on rare neurological disorders, presents a compelling investment case built on a profitable and differentiated product, strong financial execution, and deep undervaluation. Its flagship product, WAKIX, is an FDA-approved treatment for excessive daytime sleepiness (EDS) and cataplexy in narcolepsy. Uniquely, WAKIX is not a controlled substance, unlike competitors such as Xyrem or Adderall, making it more accessible and safer for patients. The drug's mechanism as a selective H3 receptor antagonist avoids addictive properties, enabling once-daily dosing that improves both patient experience and adherence. At a cost of $165,000 per patient annually—less than some competitors—WAKIX has demonstrated its commercial strength, with 2024 sales growing 23% to $715 million. Harmony's impressive financial profile includes a 35% return on invested capital and 30% free cash flow margins, signaling disciplined capital allocation and strong operating leverage. Despite flat EBITDA and FCF in 2024 due to non-recurring expenses from licensing and M&A activity, margin expansion is expected to resume in 2025 as revenue continues to scale. Yet, Harmony's valuation fails to reflect its quality. The company trades at just 13.2x earnings and 8.7x free cash flow, while its FCF per share more than doubled from $0.60 in Q3 2023 to $1.30 in Q4 2024. This disconnect stems largely from two events. First, a March 2023 short-seller attack caused a temporary drop in the share price, which has yet to recover despite the FDA fully rejecting all related claims and expanding WAKIX's approval to pediatric patients in mid-2024. Second, the failure of the INTUNE study targeting Idiopathic Hypersomnia (IH) weighed on sentiment, though such setbacks are common in biotech. Harmony quickly pivoted to a new approach with Pitolisant High Dose (HD), now advancing to Phase 3 trials. Importantly, none of these headwinds affected core revenue growth or the favorable risk profile of WAKIX. Looking ahead, the upside potential is substantial. Management projects WAKIX sales of $820–$860 million in 2025 and over $1 billion by 2027. More significantly, six Phase 3 programs are expected to be in development by the end of 2025, and the company aims to launch a new product every year through 2030. This could drive total sales to over $3 billion by 2028. Of particular note is ZYN-002, targeting Fragile X Syndrome, which has no current treatment but affects over 80,000 patients. Fast-tracked by the FDA, ZYN-002 could launch as early as 2026 and—with full ownership—would provide high-margin revenue. Additionally, a new gastro-resistant formulation of Pitolisant (GR) is advancing with potential approval by 2026, possibly extending WAKIX exclusivity through 2044. Even excluding pipeline contributions, Harmony's intrinsic value is considerably higher. A conservative DCF model based solely on WAKIX, using management's low-end guidance and a 13.58% WACC, implies a base-case share price of $74.81—well above current levels. Harmony outperforms peers such as Jazz, Takeda, and Avadel in both margins and growth while remaining significantly undervalued. As clinical milestones unfold and investor sentiment corrects, Harmony offers a high-quality, cash-generating asset with clear catalysts for a major rerating. Harmony Biosciences Holdings, Inc. (HRMY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held HRMY at the end of the fourth quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of HRMY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HRMY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
