Harmony Biosciences stock jumped Tuesday on the biotech company's "high-quality" third-quarter beat on the back of its narcolepsy treatment, Wakix.
During the September quarter, Wakix generated $186 million in sales, growing 16% year over year and beating expectations for $182 million to $185 million, according to analysts' reports. Earnings rose more than 6% to $1.03 per share, minus some items, and topped FaceSet-polled analysts' call for $1.
The company also reiterated its guidance for $700 million to $720 million in Wakix sales this year, up almost 22% at the midpoint. The guidance was in line with analysts' view for $710.1 million.
Harmony Biosciences stock popped 16.1%, closing at 41.49. Shares bounded off their 50-day line. Harmony stock leads the 733-company Medical-Biomed/Biotech industry group.
Harmony Biosciences' Pipeline Remains Key
Importantly, Harmony's pipeline remains on track, Mizuho Securities analyst Graig Suvannavejh said in a report. Suvannavejh described Harmony Biosciences' beat as "high quality."
The company plans to submit an approval request for pitolisant — the chemical behind Wakix — as a treatment for idiopathic hypersomnia in the fourth quarter.
It also expects to have the Food and Drug Administration for permission to test in people its orexin-2 agonist in mid-2025. This drug could also treat sleepiness disorders.
Further, Harmony Biosciences plans to begin a Phase 3 test of an epilepsy drug this year and expects to announce the results of a study testing its Fragile X syndrome treatment in mid-2025. Fragile X is a genetic disease that affects brain development.
Suvannavejh kept his outperform rating and 52 price target on Harmony Biosciences stock.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
