Overview

• U.S. rare disease drugmaker's Q1 product revenue rose 17% yr/yr but missed analyst expectations

• Q1 net income fell yr/yr due to higher R&D and licensing costs

• Company reiterated 2026 revenue guidance of $1.0 bln to $1.04 bln

Outlook

• Company reiterates 2026 net revenue guidance of $1.0 bln to $1.04 bln

• Harmony expects NDA submission for Pitolisant GR in Q2 2026

• Company focuses business development on assets with revenue potential in 2028–2032

Result Drivers

• WAKIX DEMAND - Co said Q1 revenue growth reflected continued strong demand for WAKIX in narcolepsy and broad clinical utility

• HIGHER COSTS - Increased cost of product sold was driven by new royalties related to the Novitium license agreement

• LICENSING AND R&D EXPENSES - Net income decline was due to higher R&D and licensing costs, including up-front payments for new license agreements

Company press release: ID:nBw4T7yhWa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Product Revenue	Miss	$215.39 mln	$225.23 mln (9 Analysts)
Q1 Net Income		$32.49 mln
Q1 Pretax Profit	Miss	$39.69 mln	$58.20 mln (8 Analysts)
Q1 Gross Profit		$170.88 mln
Q1 Operating Income		$37.29 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Harmony Biosciences Holdings Inc is $45.00, about 37.3% above its May 6 closing price of $32.78

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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