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what it is
Harmony sells a narcolepsy drug and is trying to stretch that cash machine into more rare brain and seizure disorders.
how it gets paid
Last year Harmony Biosciences made $868M in revenue. WAKIX narcolepsy adults was the main engine at $573M, or 66% of sales.
why it's growing
Revenue grew 21.5% last year. 79.2% gross margin matters most because it tells you the drug still has pricing power and payer access strong enough to keep the economics fat.
what just happened
The quarter said one thing: revenue hit $625M, and the profit machine still looks very alive.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
11.9x trailing p/e — the market's not buying it — or you found a deal
18.8% return on capital — nothing to write home about
$2.51 fy2024 eps est
xvary composite: 56/100 — below average
What they do
Harmony sells a narcolepsy drug and is trying to stretch that cash machine into more rare brain and seizure disorders.
WAKIX is already on the market, and that matters because doctors treating rare disorders do not switch fast once a therapy is working. Harmony turned that position into $868 million of trailing revenue with a 30.1% operating margin. Commercial-stage → already selling drugs → so you are not funding a science project from scratch.
How they make money
$868M
annual revenue · their business grew +21.5% last year
WAKIX narcolepsy adults
$573M
WAKIX prescriber expansion
$139M
Rare disorder label expansion
$87M
Patient access and refill base
$52M
Other product-related revenue
$17M
The products that matter
narcolepsy treatment
WAKIX (pitolisant)
$868M · 100% of revenue
it's the entire current business. WAKIX generated all $868M in revenue last year, which is why every debate about HRMY eventually turns into a debate about one product.
entire revenue base
Key numbers
9%
debt load
Long-term debt is just 9% of capital, which means you are looking at a company with room to absorb setbacks better than a balance sheet stuffed with leverage.
30.1%
operating margin
Operating margin → profit after running the business → so what: this drug throws off real cash instead of just covering overhead.
18.8%
return on capital
Return on capital → profit earned on money invested → so what: Harmony is earning more than most companies get from a mature drug asset.
11.9x
trailing p/e
Price-to-earnings → how many dollars investors pay for $1 of profit → so what: the market is pricing this like a business with a trust problem.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $149M (9% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HRMY right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The quarter said one thing: revenue hit $625M, and the profit machine still looks very alive.
EPS came in at $2.32 and gross margin was 79.2%. Against trailing revenue growth of 21.5%, the business is still getting more scale out of the same core asset.
$625M
revenue
$2.32
eps
79.2%
gross margin
the number that mattered
79.2% gross margin matters most because it tells you the drug still has pricing power and payer access strong enough to keep the economics fat.
source: company earnings report, 2026
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What could go wrong
the #1 risk is WAKIX concentration — one product still funds the entire company.
med
single-product dependency
WAKIX generated 100% of the company's $868M in revenue last year. Any clinical, regulatory, reimbursement, or competitive hit lands directly on the whole business.
impact: this exposes all current revenue, not just one segment.
med
patent and exclusivity window
WAKIX's composition-of-matter patent expires in 2034. That sounds far away until you remember the equity story has to survive on one drug the entire time.
impact: the closer the market gets to 2034 without a second act, the less generous the multiple gets.
med
pipeline fails to become a second act
The current page gives you almost no revenue diversification because there isn't any yet. If the pipeline stays optional rather than operational, HRMY remains a one-asset stock regardless of margin quality.
impact: a business with a 79.2% gross margin can still de-rate if investors stop believing in life beyond WAKIX.
Any real hit to WAKIX puts 100% of $868M revenue and most of a 79.2% gross-margin model in the line of fire.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
the path from $868M to $1B
This is the cleanest scoreboard on the page. If WAKIX keeps moving toward management's more-than-$1B revenue goal, the 11.9x earnings multiple will look too low.
risk
anything that changes the 2034 exclusivity timeline
The patent date is the quiet part loud. If that window shortens in any meaningful way, the stock will care immediately.
calendar
the next earnings release for estimate cleanup
Current feed estimates still show $715M revenue and $2.51 EPS while the company has already put out a preliminary $868M revenue figure. That mismatch needs to clear.
trend
whether insider buying turns into a pattern
A director bought shares in March 2026. One purchase is a data point. Repeated buying would look more like conviction.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not see this as a smooth quarterly story. one-drug companies rarely are.
risk rank
3
middle of the pack on safety. safer than an early-stage biotech, nowhere near defensive healthcare.
source: institutional data
Institutional activity
institutional ownership data for HRMY is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$38
current price
n/a
target midpoint · n/a from current
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