NASDAQ$HRMY

Harmony Biosciences Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Harmony Biosciences reported strong growth in WAKIX net revenue and average number of patients on WAKIX.

Harmony Biosciences reported net product revenues of $107.0 million for the quarter ended June 30, 2022, a 45% increase compared to the same period in 2021. GAAP net income was $23.5 million, or $0.39 per diluted share, while non-GAAP adjusted net income was $34.7 million, or $0.57 per diluted share. The company also signed a new agreement with Bioprojet to develop innovative therapeutics based on pitolisant.

  • WAKIX net revenue of $107.0 million for Q2 2022, a 45% increase vs. the same period in 2021
  • Average number of patients on WAKIX increased to approximately 4,300
  • Signed new agreement with Bioprojet to develop innovative therapeutics based on pitolisant
  • Phase 3 Idiopathic Hypersomnia (IH) INTUNE Study is on track with site activations and patient enrollment

Headline financials

Total Revenue

$107M

Previous: $73.8M+45.0%
EPS (adj)

$0.57

Previous: $0.54+5.6%
Capital Expenditures

-$86K

Previous: -$205K+58.0%
Free Cash Flow

$23.4M

Previous: $13.9M+68.5%
Net Income

$23.5M

Previous: $14.1M+66.7%
Operating Income

$33.1M

Previous: $23.3M+42.1%
Gross Profit

$88.1M

Previous: $61.1M+44.1%
Cash & Equivalents

$237M

Previous: $160M+48.1%
Total Assets

$505M

Previous: $360M+40.4%
Stock-Based Comp

$7.28M

Previous: $3.91M+86.3%

Revenue & EPS history

Harmony Biosciences · Revenue · Quarterly

$107M

Q2 2022+45%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Harmony Biosciences · $107M total across 1 segment · Q2 2022

  • WAKIX Net Product Revenue
    $107M+45.0%

Forward guidance

Harmony Biosciences is focused on developing and delivering treatments for rare neurological diseases and is committed to innovation and collaboration.

Tailwinds

  • Phase 3 registrational trial in adult patients with IH (INTUNE Study) off to a good start and on track with site activations and patient enrollment.
  • Completed enrollment in the PWS Phase 2 proof-of concept study. On track for top line data from this trial in the fourth quarter of 2022.
  • Enrollment continues in the Myotonic Dystrophy (DM1) study. Anticipate top line data from this Phase 2 proof-of concept trial in 2023.
  • Harmony extended the $100 million delayed draw loan facility with Blackstone, which now makes those funds available into August of 2023.
  • New agreement with Bioprojet focused on developing innovative therapeutics based on pitolisant, expanding Harmony’s opportunity in narcolepsy, and potentially other indications mutually agreed to by the parties.

Headwinds

  • Failure to satisfy the closing conditions under our new agreement with Bioprojet, including obtaining clearance under the HSR Act.
  • Our failure to achieve the potential benefits under our new agreement with Bioprojet.
  • Volatility and fluctuations in the price of our common stock.
  • The significant costs and required management time as a result of operating as a public company.
  • The fact that the price of Harmony’s common stock may be volatile and fluctuate substantially.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.3%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+6.0%

Avg return

30 days after

54%

14 / 26 earnings

Positive

+24.4%

Q3 2023

Best reaction

-15.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.1%-8.0%-1.8%
Q4 2025+2.6%+6.2%+2.1%
Q3 2025-1.6%-5.1%+18.1%
Q1 2025+7.0%+13.7%+16.9%
Q4 2024+8.2%-1.0%-2.4%
Q3 2024-5.5%-7.5%+0.0%
Q2 2024+8.5%+9.4%+15.0%
Q1 2024+3.5%+7.9%-1.3%
Q4 2023-1.5%+1.5%+0.9%
Q3 2023+24.4%+31.5%+47.4%
Q2 2023-7.9%-5.0%+2.5%
Q1 2023+9.9%+9.5%+5.0%
Q4 2022-6.1%-8.0%-15.2%
Q3 2022+12.5%+13.2%+15.4%
Q2 2022+6.3%+6.6%-7.8%
Q1 2022-15.1%-21.9%-5.0%
Q4 2021+5.6%+6.1%+31.5%
Q3 2021+0.1%-0.1%-9.3%
Q2 2021+13.9%+20.1%+41.4%
Q1 2021+1.2%+4.0%+21.8%
Q1 2020+1.2%+4.0%+21.8%
Q2 2020-4.1%+11.4%-2.1%
Q4 2020-4.1%+11.4%-2.1%
Q3 2020-6.8%-7.4%-12.0%
Q4 2019-6.8%-7.4%-12.0%
Q3 2019-6.8%-7.4%-12.0%
Q2 2019
Q1 2019

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