On Wednesday, Goldman Sachs reiterated its Sell rating on Harmony Biosciences Holdings Inc. (NASDAQ: NASDAQ:HRMY), maintaining a price target of $28.00. The firm's analysis followed Harmony's report of third-quarter 2024 product revenues of $186.0 million, which was marginally above the FactSet consensus and Goldman Sachs's estimates of $184.1 million and $184.0 million, respectively.
The company saw an increase in average patients on therapy, reaching approximately 6,800, compared to 6,550 in the second quarter of 2024. This 250-patient increase aligns with the growth seen in the previous quarter but falls below the growth in the third quarter of 2023.
Goldman Sachs pointed out the importance of net patient growth trends as Harmony's product launch matures, noting the company's maintained revenue guidance of $700 million to $720 million.
Despite the maintained revenue guidance, Goldman Sachs expressed skepticism regarding consensus estimates that suggest a re-acceleration of net patient growth in 2025. The firm anticipates that the net patient growth in 2025 will be similar to that of 2024, given the current stage of the product's launch.
Additionally, Goldman Sachs highlighted upcoming clinical updates as points of interest for investors.
These include data from the Phase 3 RECONNECT study of ZYN002 in Fragile X syndrome expected in mid-2025, and the company's planned supplemental New Drug Application (sNDA) filing for pitolisant in idiopathic hypersomnia. While the Phase 3 study of pitolisant did not meet its primary endpoint, there remains potential for approval in the second half of 2025.
In conclusion, Goldman Sachs's stance on Harmony Biosciences remains cautious, with no change to the Sell rating or the price target of $28.00.
In other recent news, Harmony Biosciences initiated a public stock offering of 8,000,000 shares by two shareholders, Marshman Fund Trust II and Valor IV Pharma Holdings, LLC.
Various analyst firms have weighed in on the company's prospects. Mizuho reiterated its Outperform rating, anticipating a breakout year for Harmony Biosciences in 2025. Raymond James resumed coverage with an Outperform rating, highlighting potential growth opportunities following the dismissal of the Citizen's Petition and the expansion of the drug Wakix's label for pediatric use.
Piper Sandler maintained its Overweight rating, emphasizing the company's growth strategies and pipeline developments. These are all recent developments in Harmony Biosciences' journey.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Harmony Biosciences' financial performance and market position. The company's market capitalization stands at $2.37 billion, with a price-to-earnings ratio of 16.98. Notably, Harmony has demonstrated strong revenue growth, with a 31.52% increase over the last twelve months as of Q2 2024, reaching $656.11 million.
InvestingPro Tips highlight that Harmony Biosciences has been profitable over the last twelve months and analysts predict continued profitability this year. This aligns with Goldman Sachs' focus on the company's revenue guidance and patient growth trends. Additionally, the stock is trading near its 52-week high, with a significant 110.5% return over the past year, potentially reflecting investor optimism about the company's performance and upcoming clinical updates.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Harmony Biosciences, providing deeper insights into the company's financial health and market position.
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