Harmony stock remains Outperform at Oppenheimer, guidance supports optimism

Published 13/01/2025, 18:36
Harmony stock remains Outperform at Oppenheimer, guidance supports optimism

On Monday, Oppenheimer raised its price target on Harmony Biosciences Holdings Inc. (NASDAQ:HRMY) stock to $61 from $59, while maintaining an Outperform rating. The adjustment follows Harmony (JO:HARJ) Biosciences' preliminary fourth quarter 2024 results, which showcased strong performance, particularly from its drug Wakix.

Sales for the quarter reached $201 million, surpassing Oppenheimer's estimate of $192.5 million and the consensus on Wall Street of $198.6 million. This sales figure was bolstered by an increase of approximately 300 patients, bringing the average number to roughly 7,100, exceeding the anticipated 201 patient additions.

The company's revenue per patient also slightly exceeded expectations, contributing to the quarter's success. Looking forward, Harmony Biosciences issued an optimistic revenue forecast for the full year 2025, estimating between $820 million and $860 million. This guidance is more promising than previous estimates from Oppenheimer and Wall Street, which were set at $791 million and $847 million, respectively.

Harmony Biosciences' pipeline continues to progress, with particular advancements noted in its idiopathic hypersomnia (IH) treatments, orexin-2 agonist, and new formulations of pitolisant. The company's neurobehavioral and epilepsy pipelines, currently not factored into valuations, present additional opportunities for growth. Management has conveyed confidence in the company's pipeline and its potential to contribute to long-term growth, with aspirations to surpass $3 billion in net revenue.

In light of the reported earnings beat and favorable future guidance, Oppenheimer has adjusted its projections upward. The firm's analysts have reiterated the Outperform rating and have raised the price target to $61, signaling confidence in Harmony Biosciences' continued momentum and growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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