Harmony Biosciences' Sales and Profits Have Soared. Why Hasn't Its Stock Followed?

Finding worth stocks successful today's marketplace situation is challenging. To find them successful the biotech banal arena is adjacent much unusual. Harmony Biosciences (NASDAQ: HRMY) specializes successful biotechnology treatments for uncommon diseases, and contempt having been highly palmy from a fiscal standpoint, investors haven't seemed to bargain the bullish lawsuit for Harmony entirely.

The archetypal nonfiction successful this bid focused connected Harmony and its enactment toward processing its pitolisant treatment, marketed nether the marque sanction Wakix. Here, you'll larn much astir conscionable however lucrative Wakix has been, but you'll besides larn astir immoderate of the negatives that person kept the banal terms from pursuing Harmony's income and profits higher.

There's nary denying that fewer tiny biotech stocks person enjoyed the aforesaid aboriginal occurrence that Harmony has. Wakix got FDA support successful 2019, but by the pursuing year, Harmony posted gross of $160 million. Over the ensuing 5 years, Harmony saw its income emergence astatine an mean compound yearly maturation complaint of astir 40%. That has the institution connected way to station income of astir $870 cardinal erstwhile it releases its last 2025 numbers. Harmony believes Wakix volition make gross of implicit $1 cardinal successful 2026.

Many biotech stocks that triumph support for an archetypal commercialized cause past crook astir and redouble their spending connected their pipeline research. Higher expenses past effect successful continuing losses contempt the commercialized success. Yet Harmony followed a antithetic path. It became profitable successful 2021 , and a operation of income maturation and borderline enlargement has caused nett income to leap much than 5 times since then. With nett income of $186 cardinal implicit the past 12 months, Harmony's marketplace capitalization of $2.1 cardinal implies an net aggregate of conscionable 12.

Given this fiscal performance, it's astonishing to spot Harmony's banal fundamentally level since its IPO. One interest is that Wakix is acceptable to suffer exclusive patent extortion successful aboriginal 2030, perchance giving Harmony conscionable 4 much years earlier generic contention arrives. Yet Harmony is moving connected pitolisant variants that could supply patent extortion into the mid-2040s.