Harmony Biosciences crushed third-quarter forecasts and unveiled promising results for its narcolepsy drug in patients with a rare genetic disorder — leading the biotech stock to surge Tuesday.
The company tested its narcolepsy treatment, Wakix, in patients with Prader-Willi Syndrome who also experience excessive daytime sleepiness. This genetic disorder can lead to behavioral and intellectual challenges.
In the study, children and adults had clinically meaningful improvements in sleepiness. But an outsized placebo effect skewed the results in the teenage group, Harmony said in a news release.
Still, the results are encouraging enough "to support continued clinical development," Needham analyst Ami Fadia said in a report.
On today's stock market, the biotech stock surged 14% to 59.26. Harmony stock ranks No. 30 on the IBD 50 list of elite growth stocks. The biotech stock is also a Tech Leader.
Biotech Stock: Wakix Sales Rocket
During the September quarter, Wakix sales rocketed about 45% to $117.2 million. That beat the Street's forecast for $114 million, Fadia said. Adjusted earnings came in at 95 cents per share, climbing 132% and handily beating expectations for 27 cents, according to FactSet.
Harmony reported 300 new patients have been prescribed Wakix for narcolepsy treatment.
Overall, Mizuho Securities analyst Graig Suvannavejh kept his buy rating and 52 price target on the biotech stock.
"We're pleased by better-than-expected Wakix sales, 300 in net patient adds and positive proof-of-concept data in Prader-Willi Syndrome," he said in a report.
The biotech stock jumped above a buy zone above a cup-with-handle base and 52.62 buy point, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
