At a glance
Harmony Biosciences Holdings is worth $2.24B, about 14 times its fiscal 2025 earnings. Revenue grew 21.5% to $868.5M in fiscal 2025, with 18.3% kept as profit; over 5 years it has grown 40.3% a year. It pays no dividend; it spent $100.0M buying back its shares over FY2021–FY2025. The stock returned +29.9% over the past year with dividends reinvested and −1.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 35.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months after the low.
The business in plain English
Harmony Biosciences is a drug company focused on rare diseases of the brain and nervous system. It sells one approved medicine, WAKIX (pitolisant), a once-daily tablet for narcolepsy, a long-term disorder that causes excessive daytime sleepiness and, in some patients, cataplexy (sudden muscle weakness triggered by strong emotions). It licenses exclusive U.S. rights to the drug from its developer, Bioprojet.
Harmony makes money by selling WAKIX, which doctors prescribe and insurers and other payors help pay for. WAKIX brought in $868.5 million of net product revenue (sales after discounts and rebates) in 2025, essentially all of the company's revenue. About 8,500 patients took it on average in the fourth quarter of 2025. It is approved for adults and children six and older. WAKIX is not a stimulant, and it is the only FDA-approved narcolepsy treatment not classed as a controlled substance (a drug tightly regulated for abuse risk). Harmony estimated the U.S. narcolepsy market at about $3.1 billion of net sales in 2025.
The rest is research. Harmony is testing pitolisant in a Phase 3 trial (the last stage before seeking approval) for Prader-Willi syndrome, has studied it in myotonic dystrophy type 1, and is developing higher-dose and gastro-resistant versions. Its Epygenix acquisition added EPX-100, in Phase 3 trials for Dravet and Lennox-Gastaut syndromes, two rare epilepsies.
Price history
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HRMY +29.9% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $261.3M, up 30.3% from a year earlier, and net income was $75.4M (+89.6%).
- For fiscal 2025, revenue was $868.5M (+21.5% year over year; +40.3% a year from FY2020 to FY2025) with a 18.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +40.3% good |
|---|---|
| Operating margin | 24% good |
| Free cash flow margin | 40.1% good |
| Return on equity (FY2025) | 18.2% good |
| Return on assets (FY2025) | 12.5% good |
| Net cash (cash minus debt) | $808.5M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $159.7M | $-36.9M | $-3.0M |
| FY2021 | $305.4M | $34.6M | $98.3M |
| FY2022 | $437.9M | $181.5M | $144.3M |
| FY2023 | $582.0M | $128.9M | $219.1M |
| FY2024 | $714.7M | $145.5M | $218.7M |
| FY2025 | $868.5M | $158.7M | $347.9M |
Valuation snapshot
| Market value | $2.24B |
|---|---|
| P/E ratio | 14.2 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Harmony Biosciences Holdings’s market value went from $2.49B at the end of 2021 to $2.24B on Oct 28, 2026, down 10%; since the end of 2025 it is up 4%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.24B | +4.0% |
| 2025 | $2.16B | +9.8% |
| 2024 | $1.96B | +3.7% |
| 2023 | $1.89B | -42.1% |
| 2022 | $3.27B | +31.1% |
| 2021 | $2.49B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| HRMY price data to Oct 28, 2026 | +2.9% | +29.9% | +26.1% | -1.3% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +2.9% |
| 2025 | +8.8% |
| 2024 | +6.5% |
| 2023 | -41.4% |
| 2022 | +29.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 4.1% over that stretch · deepest drop along the way 35.7%, back to its old high 1.9 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (23 read): 0 open-market purchases and 13 sales ($6.0M), 13 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 18, 2026 | Kumar Budur CHIEF MEDICAL OFFICER | sell (plan) | $1.5M |
| Sep 8, 2026 | Kumar Budur CHIEF MEDICAL OFFICER | sell (plan) | $989K |
| Dec 12, 2025 | Jeffrey M. Dayno PRESIDENT, CEO, Director | sell (plan) | $802K |
| Dec 5, 2025 | Sandip Kapadia CHIEF FINANCIAL OFFICER | sell (plan) | $791K |
| Jan 15, 2026 | Sandip Kapadia CHIEF FINANCIAL OFFICER | sell (plan) | $753K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 12.6% | Sep 30, 2026 |
| Marshman Fund Trust II | 10.6% | Dec 31, 2024 |
| FMR LLC | 5.4% | Dec 31, 2025 |
| Vanguard Portfolio Management | 5.08% | Jun 30, 2026 |
| Valor IV Pharma Holdings, LLC | 3.2% | Sep 30, 2025 |
ETFs with the most weight in HRMY
| XPH SPDR S&P Pharmaceuticals ETF | 2.83% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 1.07% |
| SIXS ETC 6 Meridian Small Cap Equity ETF | 1.02% |
| ROSC Hartford Multifactor Small Cap ETF | 0.95% |
| FSGS First Trust SMID Growth Strength ETF | 0.86% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.7% |
| IHE iShares U.S. Pharmaceuticals ETF | 0.53% |
| DSMC Distillate Small/Mid Cash Flow ETF | 0.5% |
What could go wrong
- Nearly all revenue comes from one drug. WAKIX is Harmony's only approved product and produced essentially all of its $868.5 million of 2025 revenue. Any setback for WAKIX, from safety concerns to lost market share, would hit results directly.
- Generic copies of pitolisant. Harmony relies on patents and other protections to hold off cheaper generic pitolisant. It is seeking pediatric exclusivity, an extra protection period, but losing protection could sharply cut WAKIX sales.
- Harmony depends on Bioprojet and outside makers. Harmony licenses pitolisant and its newer versions from Bioprojet and uses third parties to manufacture it. Failing to meet the license terms, or a supply problem, could threaten its ability to sell WAKIX.
- New uses and drugs may fail. Growth beyond narcolepsy depends on trials succeeding. Pitolisant missed its main goal in idiopathic hypersomnia, and in February 2025 the FDA declined to accept that application for review. Other programs could stumble too.
- Insurers and rivals could squeeze sales. WAKIX must win patients from existing and future narcolepsy treatments. Insurers and other payors can push for lower prices or limit coverage, which could shrink the number of patients who get it.
- Loan terms limit flexibility. Harmony's term loan agreement includes restrictive and financial covenants (promises to lenders). Breaking them could trigger a default. Debt was $154.0 million, against $962.5 million of cash and investments, as of June 30, 2026.
Recent events
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
Harmony Biosciences has never paid a dividend, and its annual report filed February 24, 2026 says it does not intend to for the foreseeable future. Any gain depends on the share price, so an income investor would need to sell shares to raise cash. The company generated $347.9 million of free cash flow (cash left after running the business and capital spending) in 2025, none of it paid as dividends. Buybacks totaled $100 million from 2021 through 2025, all in 2023, yet the share count rose 2.2% between August 2021 and July 2026.
In the 2022 market slump (January 3 to October 12, 2022), the shares ended that stretch up 4.1%, but fell 35.7% between April 19 and May 9 before recovering by July 5. The stock lost 41.4% in calendar 2023, and its worst fall from a peak on record was 68.5% as of October 28, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Harmony Biosciences make money?
Harmony makes money by selling WAKIX (pitolisant), a once-daily narcolepsy tablet, in the United States. WAKIX brought in $868.5 million of net product revenue in 2025, essentially all of the company's sales. About 8,500 patients took it on average in the fourth quarter of 2025. Harmony licenses the drug from its developer, Bioprojet. WAKIX treats excessive daytime sleepiness and cataplexy in adults and children six and older, and it is not a controlled substance.
Does Harmony Biosciences pay a dividend?
No. Harmony has never paid a dividend, and its annual report filed February 24, 2026 says it does not intend to for the foreseeable future. Investors gain only if the share price rises. The company spent $100 million buying back its own shares in 2023, but the share count still rose 2.2% between August 2021 and July 2026. An income investor would need to sell shares to raise cash.
Is Harmony Biosciences profitable?
Yes. Harmony earned $158.7 million of net income on $868.5 million of revenue in 2025, or $2.71 per diluted share, after a loss in 2020. Revenue grew 21.5% in 2025. In the quarter ended June 30, 2026, revenue rose 30.3% from a year earlier to $261.3 million. As of October 28, 2026, the stock traded at about 14.2 times its 2025 earnings (its price-to-earnings ratio), with a market value of about $2.24 billion.
What drugs is Harmony Biosciences developing?
Harmony is developing new uses and versions of pitolisant, plus drugs for rare epilepsies. As of its February 2026 annual report, pitolisant was in a Phase 3 trial (the final testing stage before seeking approval) for Prader-Willi syndrome. A higher-dose version was being pursued for idiopathic hypersomnia after the original missed its main goal there. EPX-100 was in two Phase 3 trials for Dravet and Lennox-Gastaut syndromes. An orexin 2 receptor agonist, BP1.15205, was in preclinical testing (before human trials).
Does Harmony Biosciences have a lot of debt?
No, not compared with its cash. As of June 30, 2026, Harmony had $154.0 million of total debt and $962.5 million of cash and investments, which left about $808.5 million of net cash. Its term loan agreement still includes covenants, or promises to lenders, that may limit how it operates, and breaking them could trigger a default. Shareholders' equity was $999.2 million on the same date.