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HRMY Stock Gains 27.6% in Six Months: Is There More Room for Growth?

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Key Takeaways

  • Harmony Biosciences shares rise 27.6% in six months, fueled by strong Wakix demand and pipeline progress.
  • Wakix sales climb 24% to $476.7 million in the first half of 2026, supporting $1.0-$1.04B revenue target.
  • Pipeline advances in BP-205 and EPX-100 offer growth opportunities.

The going has been strong for Harmony Biosciences Holdings, Inc.  (HRMY - Free Report) over the past six months. Shares of this pharmaceutical company have surged 27.6% over the said time frame against the industry’s decline of 2.2%. The stock has also outperformed the sector and the S&P 500 Index during this period.

HRMY’s robust rally has been driven by better-than-expected quarterly results, which can be attributed to robust demand for lead drug Wakix (pitolisant) and encouraging pipeline progress.

HRMY Outperforms Industry, Sector and S&P 500 Index

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Against this backdrop, a closer evaluation of the company’s strengths and weaknesses can help assess its attractiveness as an investment opportunity.

Wakix Drives HRMY’s Strong Revenue Growth

Sustained demand for lead drug Wakix, approved for excessive daytime sleepiness in adults with narcolepsy, is driving top-line growth for the company.

Sales of the drug totaled $476.7 million in the first half of 2026, up 24% from the first half of 2025.

The average patient count rose by 450 to 8,950 in the second quarter. The growth can be attributed to strong demand for Wakix, effective commercial execution and the drug’s broad clinical utility.

With approximately 80,000 diagnosed narcolepsy patients in the United States, Wakix has significant market potential to support continued revenue growth.

HRMY remains on track to achieve its 2026 Wakix revenue guidance of $1.0-$1.04 billion.

Planned franchise expansions include gastro-resistant pitolisant tablets, with a potential launch in the first half of 2027, and high-dose pitolisant, which is being evaluated in phase III studies for narcolepsy and idiopathic hypersomnia.

Additional opportunities include a phase III study on Wakix in Prader-Willi syndrome, with top-line data expected in mid-2027.

These initiatives could broaden pitolisant's reach, extend its commercial life and support future revenue growth.

However, patent litigation and potential generic competition remain important risks.

Pipeline Progress Offers Additional Growth Opportunities

Beyond Wakix, Harmony is advancing a diversified pipeline that could create new growth drivers.

BP-205, an investigational orexin-2 receptor agonist, is a key asset, with phase I single ascending-dose data demonstrating favorable pharmacokinetics, a half-life of approximately 25 hours and a generally favorable safety and tolerability profile.

Its potential for rapid onset and once-daily dosing supports further development, with multiple ascending-dose data expected in the fourth quarter of 2026 and phase II studies across multiple central nervous system indications scheduled to begin in mid-2027.

Meanwhile, EPX-100 (clemizole hydrochloride) is being evaluated in phase III studies for Lennox-Gastaut syndrome and Dravet syndrome, with top-line data expected in the first half of 2027.

Harmony also has $962.5 million in cash, cash equivalents and investments, providing financial flexibility to fund pipeline development and pursue business development opportunities. These programs offer meaningful long-term upside, although their commercial potential will depend on clinical outcomes and regulatory approvals.

HRMY: Valuation & Estimates

Going by the price/sales ratio, shares currently trade at 1.98X forward sales, lower than its mean of 2.51X and the biotech industry’s value of 2.06X.

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The bottom-line estimate for 2026 has remained unchanged and the same for 2027 has increased 8 cents to $4.06, over the past 60 days.

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Invest in HRMY

Strong Wakix growth, expanding pitolisant franchise, promising pipeline and solid liquidity position should maintain momentum for HRMY.

The company’s reaffirmed full-year revenue guidance of $1.0-$1.04 billion highlights Wakix’s commercial strength.

Planned launches of new pitolisant formulations and potential label expansions could further extend the franchise’s growth trajectory, while pipeline candidates BP-205 and EPX-100 offer additional long-term revenue opportunities.

HRMY’s ability to generate substantial revenues and earnings from its marketed product provides a foundation for continued investment in new growth opportunities, despite patent litigations.

However, competition in the narcolepsy market remains significant. Jazz Pharmaceuticals (JAZZ - Free Report) competes with Xywav, while Alkermes (ALKS - Free Report) markets Lumryz (following the acquisition of Avadel Pharmaceuticals plc), an extended-release sodium oxybate treatment for narcolepsy.

JAZZ reported strong growth in Xywav, with approximately 17,125 active patients on treatment at the end of the second quarter of 2026. Of these, around 11,275 had narcolepsy and 5,850 had idiopathic hypersomnia.

ALKS’s pipeline also includes alixorexton, Alkermes' novel, investigational, oral, selective orexin 2 receptor agonist in development for the treatment of narcolepsy type 1, narcolepsy type 2 and idiopathic hypersomnia.

Nevertheless, continued Wakix growth and the potential expansion of its product portfolio provide a favorable foundation for long-term growth. We recommend the stock to prospective investors, while existing shareholders should hold their positions, as we believe the company has further growth potential.

HRMY currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 

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