Bank of America Securities analyst Jason Gerberry reiterated a Sell rating on Harmony Biosciences Holdings (HRMY – Research Report) yesterday and set a price target of $33.00.
Jason Gerberry has given his Sell rating due to a combination of factors impacting Harmony Biosciences Holdings. The primary concern is the company’s reliance on Wakix, with limited progress in diversifying its pipeline to sustain revenue once generic versions enter the market. Despite a patent settlement that potentially delays generic competition until 2030, the presence of six other generic challengers poses a significant risk, suggesting the need for revenue diversification before Wakix loses exclusivity.
Furthermore, the upcoming data on Zygel for Fragile X Syndrome is viewed with skepticism. Previous studies have not demonstrated clear benefits, and while changes in formulation and patient selection might enhance outcomes, the overall setup is still considered uncertain. This lack of confidence in pipeline developments and the looming threat of generic competition underpin Gerberry’s cautious outlook and Sell rating for Harmony Biosciences Holdings.