Mizuho reaffirms Harmony Biosciences stock rating on positive orexin data

Published 23/06/2025, 12:28
Mizuho reaffirms Harmony Biosciences stock rating on positive orexin data

Investing.com - Mizuho (NYSE:MFG) maintained its Outperform rating and $48.00 price target on Harmony Biosciences Holdings Inc. (NASDAQ:HRMY), representing significant upside from the current price of $31.89, following the company’s presentation of preclinical data for its orexin 2 receptor agonist. According to InvestingPro analysis, the company maintains strong financial health with a "GREAT" overall score.

The research firm described the preclinical characterization of BP1.15205 as positive, noting favorable efficacy and safety/tolerability profiles. Mizuho highlighted that while the candidate lags behind competitors in development timelines, it appears to be the most potent orexin candidate based on EC50 measurements.

Mizuho’s analysis included a comparison between Harmony (JO:HARJ)’s BP1.15205 and TAK-861/oveporexton, currently the most advanced orexin in development with Phase 3 data expected this summer. The firm concluded that Harmony’s candidate compares favorably against this competitor.

The research firm expressed optimism that Harmony’s orexin candidate could potentially become a best-in-class asset in the category, despite being earlier in the development process than some competing drugs.

Mizuho noted that its near-term focus remains on the upcoming Phase 3 readout for ZYN-002 in Fragile X Syndrome, expected in the third quarter of 2025. The company’s attractive P/E ratio of 12.76 and strong cash position suggest it’s well-positioned to advance its pipeline while maintaining financial stability.

In other recent news, Harmony Biosciences reported strong financial results for the first quarter of 2025, with revenues reaching $184.7 million, surpassing expectations. The company’s earnings per share (EPS) also exceeded forecasts, coming in at $1.03 compared to the projected $0.61. This performance was primarily driven by the continued success of Wakix, a treatment for narcolepsy, which contributed to a 20% year-over-year revenue growth. Additionally, Harmony Biosciences settled a patent litigation case with Lupin (NSE:LUPN) Limited, allowing Lupin to launch a generic version of WAKIX® no earlier than January 2030. Analyst firms Oppenheimer and Mizuho have shown optimism, with Oppenheimer assuming an Outperform rating and Mizuho raising its stock target to $48. Harmony Biosciences is also advancing its pipeline, planning to start human trials for a narcolepsy drug in 2025. The company continues to focus on expanding its product offerings and maintaining a robust intellectual property portfolio.

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