Harmony Biosciences Holdings, Inc. (HRMY)

Price$41.54Cached quoteAs of 2026-09-15 05:06 UTC

AI: Fair-priced

Price checkThe shares look inexpensive on current cash earnings, but the discount reflects a concentrated product franchise.

At about 14 times trailing earnings and roughly 7 times trailing EBITDA, meaning earnings before interest, taxes, depreciation, and amortization, after subtracting simple net cash, HRMY is not priced like a high-growth drug company. The supplied history shows 2025 diluted earnings per share of $2.71 and operating cash flow of $348.2 million. That looks attractive against 2026 revenue guidance above $1 billion, but the multiple assumes WAKIX remains durable beyond March 2030 exclusivity. Because later patent protection and pipeline value are uncertain, Fair-priced is the balanced verdict.

Big pictureRevenue and cash generation have compounded strongly, though spending and product concentration make future results less predictable.

Revenue rose from $159.7 million in 2020 to $868.5 million in 2025, about a 40% compound annual growth rate, while operating income reached $208.5 million. Operating cash flow was positive in five straight years through 2025 and rose to $348.2 million; after only $0.3 million of capital spending, approximate free cash flow, cash left after running and investing in the business, was $347.9 million. The business is less tied to economic cycles than discretionary companies, but first-quarter market-access timing shows quarterly volatility.

Business strengthA large cash cushion and protected medicine franchise provide meaningful downside support despite modest share dilution.

At June 30, 2026, cash and equivalents were $549.8 million against $160.2 million of debt, leaving $389.6 million of simple net cash; short- and long-term investments added about $412.7 million. Current assets of $814.3 million were about 3.5 times current liabilities of $234.1 million, limiting financing pressure. Capital allocation is mixed: the company repurchased $100 million of shares in 2023, but none in 2024 or 2025, while shares outstanding rose from 56.8 million in 2023 to 58.1 million by June 2026 and 2025 stock compensation was $44.9 million.

What could change the storyUpside depends on extending one medicine’s life and proving new treatments, while patent losses could reverse the valuation.

Near-term upside has concrete milestones: WAKIX revenue grew 30% year over year in the second quarter, pediatric approval broadened the label, and the gastro-resistant version’s application was accepted with an April 2027 decision target. Early BP-205 data showed favorable drug exposure and safety, but mid-stage studies and 2027–2028 trial readouts remain future value, not current earnings. The bear case is heavy WAKIX dependence: an adverse patent outcome, weaker reimbursement, or failed expansion could expose the low multiple as justified. Closing arguments in remaining generic litigation are scheduled for October 22, 2026.

AI: News

Record Q2 and BP-205Record sales and encouraging early trial data strengthened both near-term earnings confidence and long-term pipeline hopes.

On August 4, Harmony reported second-quarter WAKIX revenue of $261.3 million, up 30% from a year earlier, with net income of $75.4 million versus $39.8 million. It repeated full-year revenue guidance of $1.0–$1.04 billion. Initial BP-205 study results showed favorable drug exposure and safety, supporting plans for a larger study in 2027. Shares closed 8.9% higher that day; the release’s multiple positives make exact attribution uncertain.

CFO TransitionA sudden finance-leadership change added execution risk even as preliminary sales remained strong.

On July 16, the chief financial officer, Glenn Reicin, stepped down to pursue other opportunities, effective immediately, and Stephen Mollichella became interim principal financial officer. The same announcement pre-reported record second-quarter WAKIX revenue of about $261 million, up 30% year over year, and reaffirmed the $1.0–$1.04 billion outlook. Shares fell 3.9% that day, but timing alone cannot prove the transition caused the move. The later full report provided continuity, reducing immediate concern.

Pediatric ApprovalFood and Drug Administration approval opened pediatric cataplexy treatment, expanding WAKIX’s market and supporting six additional months of exclusivity.

On February 17, Harmony announced approval for WAKIX tablets to treat cataplexy in children aged six and older with narcolepsy. The company said WAKIX became the only approved non-scheduled treatment for pediatric and adult narcolepsy patients with or without cataplexy. The added indication matters because completing the related pediatric study requirements supports six months of extra regulatory protection, extending exclusivity to March 2030. Revenue impact is not yet separately disclosed, so the value effect remains an estimate.

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Revenue

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2020

2021

2022

2023

2024

2025

Net income

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2022

2023

2024

2025

Free cash flow

2019

2020

2021

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2025

Total cash / debt

CashTotal debt

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2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$868.5M	$714.7M	$582.0M	$437.9M	$305.4M	$159.7M	$6.0M
Gross profit	$670.1M	$557.9M	$460.8M	$354.4M	$249.9M	$132.0M	$4.4M
Gross margin	77.16%	78.06%	79.17%	80.93%	81.82%	82.64%	73.69%
Research & development	$189.6M	$145.8M	$76.1M	$70.9M	$30.4M	$19.4M	$69.6M
Operating expenses	$461.6M	$367.1M	$268.8M	$234.2M	$162.4M	$115.0M	$150.3M
Operating income	$208.5M	$190.8M	$192.0M	$120.2M	$87.5M	$17.0M	−$145.9M
Operating margin	24.00%	26.70%	32.99%	27.45%	28.66%	10.63%	−2,433.76%
EBITDA	$255.0M	$214.9M	$216.4M	$143.6M	$106.4M	$27.2M	−$142.7M
EBITDA margin	29.37%	30.07%	37.18%	32.79%	34.82%	17.04%	−2,380.22%
Net income	$158.7M	$145.5M	$128.9M	$181.5M	$34.6M	−$36.9M	−$152.0M
Net profit margin	18.27%	20.36%	22.14%	41.44%	11.33%	−23.13%	−2,535.06%
Basic EPSper basic share	$2.76	$2.56	$2.17	$3.07	$0.60	-$2.48	-$24.07
Diluted EPSper diluted share	$2.71	$2.51	$2.13	$2.97	$0.58	-$2.48	-$24.07

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

12.22%of listed shares

BlackRock, Inc.7.1M shares · Jun 30, 2026

View holders

Top 20 reported holders of HRMY
Holder	% owned
BlackRock, Inc.	12.22%7.1M shares
Marshman Fund Trust II	≈10.41%6.05M shares
FMR LLC	6.15%3.57M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.96%2.88M shares
AMERICAN CENTURY COMPANIES INC	4.37%2.54M shares
DIMENSIONAL FUND ADVISORS LP	4.12%2.39M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.62%2.11M shares
LSV ASSET MANAGEMENT	3.55%2.06M shares
STATE STREET CORP	3.20%1.86M shares
ARMISTICE CAPITAL, LLC	2.69%1.56M shares
GEODE CAPITAL MANAGEMENT, LLC	2.48%1.44M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	2.26%1.31M shares
RENAISSANCE TECHNOLOGIES LLC	2.06%1.2M shares
TWO SIGMA INVESTMENTS, LP	1.65%959.14K shares
AQR CAPITAL MANAGEMENT LLC	1.61%934.33K shares
SG Americas Securities, LLC	1.52%882.72K shares
Valor Management LLC	1.41%818.01K shares
MORGAN STANLEY	1.26%733.68K shares
UBS Group AG	1.04%602.99K shares
Sabater Juan A. / Valor Equity Associates IV L.P. / Valor IV Pharma Holdings, LLC / VALOR EQUITY PARTNERS IV L.P. / Valor Equity Capital IV LLC / VALOR EQUITY PARTNERS IV-B L.P. / VALOR EQUITY PARTNERS IV-A L.P. / Valor Management L.P. / Gracias Antonio J.	≈1.00%579.53K shares

Percentages use 58.12M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)31$290.58M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jan 26, 2026Form 4 · 10b5-1	Kapadia SandipCHIEF FINANCIAL OFFICER	SellCommon Stock	3.7K	$37.15	$139.2K	24.5K
Jan 15, 2026Form 4 · 10b5-1	Kapadia SandipCHIEF FINANCIAL OFFICER	SellCommon Stock	21.0K	$35.92	$752.9K	0
Dec 12, 2025Form 4 · 10b5-1	Dayno Jeffrey M.PRESIDENT, CEO	SellCommon Stock	5.9K	$40.11	$238.0K	0
Dec 12, 2025Form 4 · 10b5-1	Dayno Jeffrey M.PRESIDENT, CEO	SellCommon Stock	20.0K	$40.11	$802.2K	0
Dec 5, 2025Form 4 · 10b5-1	Kapadia SandipCHIEF FINANCIAL OFFICER	SellCommon Stock	20.0K	$39.54	$790.8K	0