| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 85 | 13.4x | 17.8x | Top tier | |
Growth | 82 | 24.3% | 7.1% | Top tier | |
Quality | 95 | 16.1% | 4.5% | Top tier | |
Safety | 86 | — | 2.6x | Top tier | |
Capital Return | 80 | — | 2.12% | Top tier | |
Momentum | 83 | 2.2% | 2.9% | Top tier | |
Sentiment | 45 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Harmony Biosciences Holdings, Inc. is a biopharmaceutical company focused on treatments for sleep-wake disorders and rare central nervous system diseases. Its business model in Q2 fiscal 2026 relies almost entirely on WAKIX, a non-scheduled treatment for narcolepsy; its net revenue reached $261.3 million, the same as the company’s total reported net revenue for the period. The company seeks to expand this franchise through the pitolisant GR and pitolisant HD formulations and to diversify its portfolio through BP-205 and Phase 3 programs in Prader-Willi syndrome and Dravet and Lennox-Gastaut syndromes.
In Q2 fiscal 2026, revenue increased 30% year over year to $261.3 million from $200.5 million and rose 21% compared with the previous quarter. Net income reached $75.4 million, or $1.28 per diluted share, compared with $39.8 million and $0.68, respectively, a year earlier, while operating expenses declined to $108.8 million from $114.2 million. Cost of products sold was 24.2% of revenue, equivalent to an implied gross margin of 75.8%, compared with a cost ratio of 19% a year earlier.
Harmony ended Q2 fiscal 2026 with cash, cash equivalents, and investments of $962.5 million, compared with debt of $155 million, giving it the capacity to fund its clinical pipeline and business development transactions. For comparison, EDGAR data for fiscal 2025 showed revenue of $868.5 million, gross profit of $670.1 million, and net income of $158.7 million, while revenue for the twelve months ended in 2026 was approximately $899.1 million and net income was $145.6 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $48.5, compared with a wide target range of $34 to $70 and a consensus rating of “Buy”; the average target is approximately 19% above the 52-week range high of $40.87, while the lowest target is approximately 17% below it. No published price-to-earnings ratio is available in the provided data, so the valuation rests on continued WAKIX growth and clinical pipeline success, while the wide target range reflects uncertainty surrounding revenue concentration, competition, clinical results, and the exclusivity dispute.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
WAKIX is Harmony’s main commercial driver and generated net sales of $261.3 million in Q2 fiscal 2026, equal to the company’s total reported net revenue. Its sales increased 30% year over year and 21% compared with the previous quarter, while the average patient count reached 8,950. Management maintained its fiscal 2026 WAKIX revenue guidance of $1 billion to $1.04 billion.
BP-205 is an orexin-2 receptor agonist that Harmony is developing for sleep-wake disorders and broader central nervous system indications. In the Phase 1 study reported on August 4, 2026, the drug showed a time to maximum concentration of 30 to 75 minutes and a mean half-life of approximately 25 hours, with no serious or severe treatment-related events recorded in the single-dose study. Defined milestones include multiple-dose data in Q4 fiscal 2026, a readout from the sleep-deprived volunteer study in early 2027, and the initiation of multiple Phase 2 studies in mid-2027.
Harmony ended Q2 fiscal 2026 with cash, cash equivalents, and investments of $962.5 million, compared with debt of $155 million. The quarter generated net income of $75.4 million, or $1.28 per diluted share, and management indicated that it expects cash flow to remain strong. The company intends to direct liquidity toward BP-205, pitolisant programs, and EPX-100, as well as potential licensing or acquisition transactions in central nervous system diseases.
Management says its multilayered patent strategy supports WAKIX exclusivity through March 2030, including six months of pediatric exclusivity that the company expects to obtain. Harmony reached settlements with six of the seven generic drug applicants, but it remains involved in two legal proceedings with the remaining applicant and its marketing partner. The company also filed patents for the pitolisant GR and pitolisant HD formulations that could extend the pitolisant franchise into the 2040s, but the continuation of current exclusivity remains tied to the outcomes of the ongoing disputes.
The regulator accepted the pitolisant GR filing for full review, and the company set April 1, 2027 as the target decision date. Harmony expects results in 2027 from the two ONSTRIDE studies of pitolisant HD, TEMPO results in Prader-Willi syndrome, and results from the ARGUS and LIGHTHOUSE studies of EPX-100 in Dravet and Lennox-Gastaut syndromes. These programs represent five Phase 3 registrational studies, with regulatory decisions expected for some pitolisant HD and EPX-100 programs in 2028.
The most prominent risk is revenue concentration in WAKIX, which generated $261.3 million and equaled total reported quarterly revenue. Cost of products sold also increased from 19% to 24.2% of revenue due to new royalties under the Novitium agreement, reducing the implied gross margin to 75.8%. Reducing this concentration depends on the success of BP-205, the pitolisant formulations, and other clinical programs, with most of their critical milestones scheduled between 2027 and 2028.
