Bullish indicating open at $55-$60, IPO prices at $37
On Monday, Oppenheimer analysts assumed coverage of Harmony Biosciences Holdings Inc. (NASDAQ: NASDAQ:HRMY) stock with an Outperform rating and maintained a price target of $61.00. The decision follows the company’s strong first-quarter 2025 financial results. According to InvestingPro data, analyst targets range from $32 to $70, with the stock currently trading at attractive valuations with a P/E ratio of 12.8.
Harmony (JO:HARJ) Biosciences reported first-quarter revenues of $184.7 million, surpassing both Oppenheimer’s and consensus estimates of $178.5 million and $182.3 million, respectively. The company attributed this growth to the ongoing momentum of its product, WAKIX, which saw an increase in the average number of patients to approximately 7,200 by the end of the first quarter. The company maintains impressive profitability metrics, with a gross margin of 78.3% and strong revenue growth of 20.6% over the last twelve months.
The management of Harmony Biosciences anticipates continued patient growth throughout the year. This growth is expected to support their full-year 2025 revenue guidance of $820 million to $860 million. The company is also making progress with its Pitolisant-HD and Pitolisant-GR programs.
While the company’s neurobehavioral and epilepsy pipelines are not currently included in Oppenheimer’s valuation, the analysts see potential upside in these areas. Additionally, the Phase 3 top-line results for Fragile X Syndrome (FXS) remain on track for the third quarter of 2025.
In other recent news, Harmony Biosciences reported impressive financial results for the first quarter of 2025, significantly surpassing earnings expectations. The company’s earnings per share (EPS) came in at $1.03, well above the forecasted $0.61, while net revenues reached $184.7 million, marking a 20% year-over-year growth. This strong performance was driven by the continued success of Wakix, Harmony Biosciences’ lead treatment for narcolepsy, which is on track to potentially become a $1 billion product. The company also maintains strong cash reserves of $610.2 million, supporting its strategic initiatives and growth prospects.
Harmony Biosciences has a robust pipeline, with plans to advance six programs to Phase 3 clinical trials by the end of 2025. Among the anticipated events are the presentation of full preclinical efficacy and safety data for BP1.15205, an orexin 2 receptor agonist, and the announcement of top-line Phase 3 RECONNECT study data for ZYN-002 in patients with Fragile X Syndrome. These developments are considered significant for the company’s future growth.
In terms of analyst outlook, Mizuho (NYSE:MFG) Securities recently raised its price target for Harmony Biosciences to $48.00 from $44.00, maintaining an Outperform rating. Analysts expressed satisfaction with the company’s financial results and the progress of Wakix, highlighting the anticipation of positive clinical data outcomes, particularly for ZYN-002, which could meaningfully impact the company’s stock value. Harmony Biosciences projects net revenues between $820 million and $860 million for the full year, with continued growth expected from its expanding product pipeline.
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