Harmony Biosciences sees Wakix sales surge, UBS projects growth

Harmony Biosciences reported a significant increase in Wakix sales, generating net revenues of $172.8 million in Q2 2024, marking a 29% year-over-year growth. The number of patients using Wakix rose to approximately 6,550, reflecting a sequential increase of about 250 patients. UBS has initiated coverage on the company with a Buy rating and a price target of $56, indicating strong confidence in Harmony's growth potential. The UBS analyst projects a compound annual growth rate (CAGR) of 19% for Wakix sales through 2026, which is higher than the consensus estimate of 16%. This optimistic outlook is based on the belief that the narcolepsy market has significant growth opportunities, particularly as awareness of the condition increases the diagnosis rate, currently estimated at around 50%. Wakix is also positioned favorably in the polypharmacy market due to its unique profile compared to other approved medications. Recent business development activities, including the acquisition of Epygenix Therapeutics for $35 million, have expanded Harmony's pipeline, adding a rare epilepsy franchise with potential milestone payments of up to $130 million. UBS expresses confidence in the ongoing Phase 3 trial of Zygel for fragile X syndrome, anticipating positive data based on previous trial results. The data read-out is expected in mid-2025, which could further enhance Harmony's portfolio and market position in the CNS asset space.