Harmony Biosciences Holdings (HRMY) is back in focus after its second quarter 2026 earnings, where net income and earnings per share were higher than a year earlier, supported by WAKIX and pipeline updates.

Harmony Biosciences Holdings’ share price has gained 21.71% over the past 90 days and the 1 year total shareholder return of 10.30% points to gradually improving momentum around the earnings beat and pipeline updates, despite a small 1 day share price pullback.

If the progress at Harmony Biosciences has caught your attention, you may also want to look at other healthcare companies using AI through our 42 healthcare AI stocks

Harmony Biosciences now has stronger earnings and a more advanced pipeline, and the share price has moved higher in response. The next step is to see whether those fundamentals are already fully reflected in today’s valuation.

Most Popular Narrative: 19.2% Undervalued

The most followed valuation narrative for Harmony Biosciences Holdings points to a fair value of $47.30 per share compared to the last close at $38.24. That view leans heavily on how long WAKIX can support cash flows and how much the broader pipeline contributes over time.

Harmony is positioned to capture new sources of revenue and reduce product concentration risk through near-term late-stage pipeline catalysts, including potential first-to-market launches for ZYN002 in Fragile X syndrome and additional pitolisant formulations (HD and GR), each aimed at high-unmet-need, orphan indications.

Read the complete narrative. Read the complete narrative.

Want to understand why this narrative assigns a meaningfully higher value to Harmony Biosciences? The core assumptions balance faster earnings growth, slightly higher profitability and a lower future earnings multiple than many large pharma peers. Curious how those ingredients fit together into that $47.30 fair value?

Result: Fair Value of $47.30 (UNDERVALUED)

However, the Harmony Biosciences story also hinges on how the WAKIX legal challenges play out and whether key late stage programs like ZYN002 clear regulatory hurdles.

Next Steps

With sentiment skewing positive around Harmony Biosciences, it helps to move fast and test the numbers yourself so you are not just following the crowd. To understand what is driving that optimism and weigh it against your own expectations, start with its 4 key rewards

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.