Shares of Harmony Biosciences (NASDAQ:HRMY) experienced a 9% increase on Monday, reaching $23.04, following a 30% drop triggered by the unsuccessful Phase 3 trial of pitolisant for idiopathic hypersomnia treatment. This rise comes after the stock hit a 52-month low of $18.61, marking a 55% decline over the past year, and aligns with the InvestingPro data which shows a 1-year price total return of -23.1%.
The trial revealed no significant difference between pitolisant, marketed as Wakix, and placebo groups in terms of excessive daytime sleepiness. Positive trends favoring Wakix were observed, prompting further analysis. Approximately 88% of patients have proceeded into a 12-month long-term extension study. The safety profile for Wakix in treating narcolepsy remained consistent without any new safety concerns detected.
In response to these developments, analysts at Raymond James and Needham revised their price targets for Harmony Biosciences. The former adjusted its target to $26 from an earlier figure, while the latter set a new target at $53, both maintaining an outperform and buy rating respectively. This is in contrast to the InvestingPro Fair Value of $4.58 USD, indicating a potential overvaluation by the analysts.
InvestingPro Tips highlight a few key metrics to consider. The company operates with a poor return on assets, as evidenced by a -62.04% return on assets for Q2 2023. Additionally, the company's stock has fared poorly over the last month, with a 1-month price total return of -21.11%, and it's worth noting that the company has not been profitable over the last twelve months.
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