On Tuesday, Harmony Biosciences Holdings Inc. (NASDAQ:HRMY) received an updated price target from Raymond James, with the firm raising it to $37 from $34, while the Outperform rating was maintained.
The adjustment follows Harmony Biosciences' report of first-quarter sales for Wakix, which totaled $154.6 million, a slight decrease of 8.2% quarter-over-quarter but still surpassing Raymond James' estimate of $152.9 million. The company's full-year revenue guidance for 2024 remains steady at $700-720 million.
The company noted an increase in the number of patients using Wakix, with approximately 150 new patients added in the first quarter, compared to around 350 in the previous quarter. The average number of patients on the drug also rose to about 6,300. These figures suggest a steady performance for Wakix in the market.
Harmony Biosciences also announced several key business developments, including plans to submit a supplemental New Drug Application (sNDA) for Wakix to treat idiopathic hypersomnia (IH) in the second half of 2024. This comes after a productive meeting with the FDA. Additionally, the company has completed the acquisition of Epygenix, a private firm that owns EPX-100 (clemizole), an asset currently in a pivotal trial for Dravet Syndrome (DS), a rare form of epilepsy.
Furthermore, Harmony Biosciences has reported positive pharmacokinetic and pharmacodynamic data with new pitolisant formulations, which could potentially extend Wakix's intellectual property protection beyond the year 2040.
This is particularly significant as it follows closely on the heels of an in-licensing agreement for US and Latin American rights to TPM-1116, an orexin-2 receptor agonist from Bioprojet, aimed at treating narcolepsy and other hypersomnolence disorders.
In light of these developments, Raymond James has expressed continued confidence in Wakix's sales growth and sees potential for further value from Harmony Biosciences' expanding pipeline and the exploration of new indications for Wakix. The firm's reiterated Outperform rating and raised price target reflect this optimistic outlook.
InvestingPro Insights
As investors digest the latest updates from Harmony Biosciences Holdings Inc. (NASDAQ:HRMY), including the raised price target from Raymond James, it's worth considering additional insights that could provide a broader perspective on the company's financial health and stock performance.
According to InvestingPro data, Harmony Biosciences has a market capitalization of $1.87 billion and a strong gross profit margin of 79.17% for the last twelve months as of Q4 2023, indicating efficient operations and a solid hold on its market.
Moreover, the company's revenue growth has been robust at 32.93% for the same period, which aligns with the positive sales performance of Wakix reported in the article. Harmony Biosciences also shows a healthy liquidity position, with InvestingPro Tips highlighting that the company holds more cash than debt on its balance sheet and that liquid assets exceed short-term obligations.
This financial stability is crucial as the company plans for future growth and navigates the challenges of drug development and commercialization.
For investors seeking more comprehensive analysis and additional metrics, there are more InvestingPro Tips available, which delve deeper into Harmony Biosciences' financials and market potential. Subscribers to InvestingPro can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to these valuable insights. With management's aggressive share buyback strategy and analysts predicting the company will be profitable this year, the future looks promising for Harmony Biosciences.
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