Wolfe Research initiated coverage of Harmony Biosciences Holdings Inc. (NASDAQ: HRMY) with an Outperform rating and a $60 price target, representing a 54% premium to the stock’s $38.95 close.
The firm highlighted the company’s narcolepsy treatment Wakix, which generated $261.3 million in net sales during the second quarter of 2026, a 30% increase year-over-year and above the $250.8 million consensus estimate. Wolfe Research projects Wakix sales to reach $1 billion by 2026, driven by approximately 20% annual growth. The drug, the only non-scheduled treatment in an expanding narcolepsy market, remains resilient despite ongoing intellectual property litigation and competitive pressure from orexin agonists.
Wolfe Research also noted that 25% of patients are expected to transition to new Wakix formulations with extended intellectual property protection into the 2040s. The firm’s bullish outlook aligns with InvestingPro’s fair value estimate of $57.47, which also rates Harmony Biosciences’ financial health as excellent.
Oppenheimer maintained its Outperform rating on Harmony Biosciences but lowered its price target to $70 from $85, citing the anticipated loss of exclusivity for Wakix in 2030 as the primary concern for the base business. The firm continues to view the company favorably despite the adjustment.
Harmony Biosciences’ adjusted earnings per share for Q2 2026 reached $1.28, exceeding the 87.89-cent estimate. The company also provided full-year revenue guidance of $1.00 billion to $1.04 billion. Multiple analysts have revised earnings estimates upward for the upcoming period.
Wakix was approved for narcolepsy in 2019. Harmony Biosciences is also advancing its BP-205 orexin-2 program, with data readouts expected in the second half of 2026 and through the first half of 2027. Orexin agonists have potential applications across a range of Central Nervous System disorders.
