WAKIX (pitolisant) Net Revenue of $186.0 Million for Third Quarter 2024; Surpassed
$2B in Cumulative Net Revenue in Less
Than Five Years
On Track to Submit sNDA for Pitolisant in
Idiopathic Hypersomnia (IH) in Q4 2024 Based on Updated Strong and
Sustained Efficacy Data from Long-Term Extension Study
Next-Gen Pitolisant-GR and Pitolisant-HD
Programs Advance; IND for Potential Best-In-Class, Novel Orexin-2
Agonist On Track for mid-2025, Extending Leadership in Sleep/Wake
Beyond 2040s
Highlights Most Advanced Development Program
and Proven Serotonergic (5-HT2) Mechanism of Action For
EPX-100 in Rare Epilepsies; Pivotal Phase 3 Trial in Dravet
Syndrome Ongoing; Phase 3 Registrational Trial in Lennox-Gastaut
Syndrome to Initiate Before Year End
Next Major Clinical Catalyst: Topline Data
From ZYN-002 Pivotal Phase 3 RECONNECT Trial in Fragile X Syndrome
on Track For mid-2025
Reiterates 2024 Net Product Revenue Guidance
of $700 - $720
Million
Conference Call and Webcast to be Held Today
at 8:30 a.m. ET
PLYMOUTH
MEETING, Pa., Oct. 29,
2024 /PRNewswire/ -- Harmony Biosciences Holdings,
Inc. (Nasdaq: HRMY), today reported a record $186.0 million in net revenue for the quarter
ending on September 30, 2024,
surpassing $2 billion in cumulative
net revenues since the launch of WAKIX® in adult
narcolepsy in November of 2019. In addition, the company recently
hosted an Investor Day on October 1,
during which it highlighted its transformation into an innovative,
catalyst-rich, self-funding biotech company with a robust
late-stage pipeline.
"Going into Q4, Harmony has great momentum. During our Investor
Day, we shared new data in support of our confidence and excitement
about the company's growth trajectory as we advance our robust,
catalyst-rich, late-stage pipeline and expand into additional
rare CNS therapeutic areas. We are building on our success in
sleep/wake with a strategy focused on continuous innovation,
patient impact, and long-term value creation for our shareholders,
and, if successful, our current pipeline is poised to deliver over
$3 billion in net revenue going
forward," said Jeffrey M. Dayno,
M.D., President and Chief
Executive Officer of Harmony Biosciences. "We have been building a
leading CNS biotech company and are committed to addressing unmet
medical needs for people living with CNS disorders that have few or
no treatment options and, when we deliver on this promise to
patients, we have the potential to deliver significant value to our
shareholders as well."
Key Franchise Highlights:
Sleep/Wake: Extending Leadership Position
WAKIX:
- Net Sales for the quarter were $186.0M; with these quarterly sales, WAKIX
surpassed $2B in cumulative net
revenue in less than five years on the market
- The average number of patients on WAKIX increased by
approximately 250 patients sequentially to approximately 6,800 for
the quarter ended September 30,
2024
Pitolisant in Idiopathic Hypersomnia (IH):
- New data from the Long-Term Extension study demonstrate robust
and sustained efficacy of pitolisant in patients with idiopathic
hypersomnia
Mean improvement in Epworth Sleepiness
Scale (ESS) was ~9 points from baseline out beyond one year, with
the majority of patients in the normal range as measured by the
ESS
Sustained efficacy was also observed on the
Idiopathic Hypersomnia Severity Scale (IHSS) and Sleep Inertia
Questionnaire (SIQ) beyond one year
- Data supports strong benefit/risk proposition; on track to
submit sNDA in Q4 2024
Pitolisant-HD (high dose) program:
- Pitolisant-HD is an enhanced formulation of pitolisant designed
with the following attributes:
A higher dose with an optimized pharmacokinetic
profile to drive greater efficacy in EDS and cataplexy
Targeting a unique indication for fatigue in
narcolepsy
A gastro-resistant coating with no need for a
titration dose
- Preliminary safety data up to 5x the current highest labeled
dose of WAKIX are consistent with the established safety profile of
WAKIX and establish safety margins for the pitolisant-HD
development program
- Pitolisant-HD on track for PDUFA in 2028 with the goal to
extend the pitolisant franchise to mid-2040s
- Provisional patents filed until 2044 with the opportunity to
grow the pitolisant franchise by pursuing additional
indications
Pitolisant-GR (gastro-resistant) program:
- Pitolisant-GR is a gastro-resistant formulation of pitolisant
designed to minimize GI tolerability issues in patients with
narcolepsy; approximately 90% of patients with narcolepsy
experience GI symptoms partly related to the underlying disease
mechanism
- On track to initiate pivotal bioequivalence study and dosing
optimization study (to remove the titration dose) in Q1 2025
- PDUFA on track for 2026 with IP to the mid-2040s
Orexin-2 agonist program:
- BP1.15205 (formerly TPM-1116) potential to be best-in-class
orexin-2 receptor agonist
Based on a novel chemical scaffold
Demonstrated greater potency compared to all
publicly disclosed data on orexin-2 agonists; allows for dosing
flexibility to target all central disorders of hypersomnolence. The
potency was consistent across species along with an excellent
selectivity of greater than 600x which translates to over 140-fold
margin over orexin-1 receptors at the anticipated maximum human
dose
In addition, BP1.15205 demonstrated over
1000-fold selectively over 150 other targets of interest
Preclinical PK data consistent with
once-a-day dosing
Rare Epilepsy: Most Advanced Development Program in the
5-HT2 agonist class
EPX-100 (clemizole hydrochloride):
- MoA: Proven serotonergic (5-HT2) mechanism of action
in Developmental Epileptic Encephalopathies (DEEs) confirmed via a
validated and highly predictive preclinical model (zebra fish
model)
- Most advanced development program for the DEEs:
EPX-100 in Phase 3 registration trial, ARGUS
study, in patients with Dravet syndrome (DS); on track for topline
data in 2026
- EPX-100 Phase 3 registration trial for Lennox-Gastaut syndrome
(LGS) on track to initiate later this year
- Preliminary Safety and Tolerability data suggests favorable
profile compared to select approved drugs for rare epilepsies (with
no need for routine laboratory or cardiac monitoring)
- Received Orphan Drug Designation (ODD) and Rare Pediatric
Disease Designation (RPDD) by the FDA for DS and LGS
EPX-200 (lorcaserin hydrochloride):
- MoA: Potent, selective 5HT2C agonist with proven
mechanism of action in DEEs confirmed via non-clinical and clinical
data
- Currently in IND-enabling stage
- Received ODD for DS, and ODD / RPDD for LGS by the FDA; and ODD
for DS by the European Medicines Agency
Neurobehavioral: Next Major Clinical Catalyst
ZYN-002
- Pivotal Phase 3 RECONNECT trial in Fragile X syndrome ongoing;
topline data on track for mid-2025
- Anticipate initiation of pivotal Phase 3 trial in 22q11.2
deletion syndrome (22q) in 2025
Third Quarter 2024 Financial Results
Net product revenues for the quarter ended September 30, 2024, were $186.0 million, compared to $160.3 million for the same period in 2023. The
16% growth versus the same period in 2023 is primarily attributed
to strong commercial sales of WAKIX driven by continued organic
demand tapping into a large market opportunity (approximately
80,000 patients diagnosed with narcolepsy in the U.S.) and the
broad clinical utility of WAKIX across the approximately 9,000 HCPs
that we call on (about 5,000 of whom do not participate in an
oxybate REMS program). The average number of patients on WAKIX
increased by approximately 250 sequentially to approximately 6,800
for the quarter ended September 30,
2024.
GAAP net income for the quarter ended September 30, 2024, was $46.1 million, or $0.79 earnings per diluted share, compared to
GAAP net income of $38.5 million, or
$0.63 earnings per diluted share, for
the same period in 2023. Non-GAAP adjusted net income was
$59.6 million, or $1.03 earnings per diluted share, for the quarter
ended September 30, 2024, compared to
Non-GAAP adjusted net income of $58.8
million, or $0.97 per diluted
share, for the same period in 2023.
Reconciliations of applicable GAAP financial measures to
Non-GAAP financial measures are included at the end of this press
release.
Harmony's operating expenses include the following:
- Research and Development expenses were $25.4 million in the third quarter of 2024, as
compared to $17.5 million for the
same quarter in 2023, representing a 45% increase;
- Sales and Marketing expenses were $27.6
million in the third quarter of 2024, as compared to
$23.4 million for the same quarter in
2023, representing a 18% increase;
- General and Administrative expenses were $28.6 million in the third quarter of 2024, as
compared to $22.5 million for the
same quarter in 2023, representing a 27% increase; and
- Total Operating Expenses were $81.6
million in the third quarter of 2024, as compared to
$63.5 million for the same quarter in
2023, representing a 29% increase.
As of September 30, 2024, Harmony
had cash, cash equivalents and investments of $504.7 million, compared to $425.6 million as of December 31, 2023.
Reiterates 2024 Net Product Revenue Guidance
Expect full year 2024 net product revenue of $700
million to $720 million.
Share Repurchase Program
The remaining amount of common stock authorized for repurchases
as of September 30, 2024, was $150 million.
Conference Call Today at 8:30 a.m.
ET
We are hosting our third quarter 2024 financial results
conference call and webcast today, beginning at 8:30 a.m. Eastern Time. The live and replay
webcast of the call will be available on the investor relations
page of our website at
https://ir.harmonybiosciences.com/. To participate in
the live call by phone, dial (800) 245-3047 (domestic) or (203)
518-9765 (international), and reference passcode HRMYQ324.
Non-GAAP Financial Measures
In addition to our GAAP results, we present certain Non-GAAP
metrics including Non-GAAP adjusted net income and Non-GAAP
adjusted net income per share, which we believe provides important
supplemental information to management and investors regarding our
performance. These measurements are not a substitute for GAAP
measurements, and the manner in which we calculate Non-GAAP
adjusted net income and Non-GAAP adjusted net income per share may
not be identical to the manner in which other companies calculate
adjusted net income and adjusted net income per share. We use these
Non-GAAP measurements as an aid in monitoring our financial
performance from quarter-to-quarter and year-to-year and for
benchmarking against comparable companies.
Non-GAAP financial measures should not be considered in
isolation or as a substitute for comparable GAAP measures; should
be read in conjunction with our consolidated financial statements
prepared in accordance with GAAP; have no standardized meaning
prescribed by GAAP; and are not prepared under any comprehensive
set of accounting rules or principles. In addition, from time to
time in the future there may be other items that we may exclude for
purposes of our Non-GAAP financial measures; and we may in the
future cease to exclude items that we have historically excluded
for purposes of our Non-GAAP financial measures.
About WAKIX® (pitolisant)
Tablets
WAKIX, a first-in-class medication, is approved by the U.S.
Food and Drug Administration for the treatment of excessive
daytime sleepiness (EDS) or cataplexy in adult patients with
narcolepsy and for the treatment of EDS in pediatric patients 6
years of age and older with narcolepsy. It was granted orphan
drug designation for the treatment of narcolepsy in 2010, and
breakthrough therapy designation for the treatment of cataplexy in
2018. WAKIX is a selective histamine 3 (H₃) receptor
antagonist/inverse agonist. The mechanism of action of WAKIX is
unclear; however, its efficacy could be mediated through its
activity at H₃ receptors, thereby increasing the synthesis and
release of histamine, a wake promoting neurotransmitter. WAKIX was
designed and developed by Bioprojet (France). Harmony has an exclusive license
from Bioprojet to develop, manufacture and commercialize
pitolisant in the United
States.
Indications and Usage
WAKIX is indicated for the treatment of excessive daytime
sleepiness (EDS) or cataplexy in adult patients with narcolepsy and
for the treatment of excessive daytime sleepiness (EDS) in
pediatric patients 6 years of age and older with narcolepsy.
Important Safety Information
Contraindications
WAKIX is contraindicated in patients with known hypersensitivity to
pitolisant or any component of the formulation. Anaphylaxis has
been reported. WAKIX is also contraindicated in patients with
severe hepatic impairment.
Warnings and Precautions
WAKIX prolongs the QT interval. Avoid use of WAKIX in patients with
known QT prolongation or in combination with other drugs known to
prolong the QT interval. Avoid use in patients with a history of
cardiac arrhythmias, as well as other circumstances that may
increase the risk of the occurrence of torsade de pointes or sudden
death, including symptomatic bradycardia, hypokalemia or
hypomagnesemia, and the presence of congenital prolongation of the
QT interval.
The risk of QT prolongation may be greater in patients with
hepatic or renal impairment due to higher concentrations of
pitolisant; monitor these patients for increased QTc. Dosage
modification is recommended in patients with moderate hepatic
impairment and moderate or severe renal impairment. WAKIX is
contraindicated in patients with severe hepatic impairment and not
recommended in patients with end-stage renal disease (ESRD).
Adverse Reactions
In the placebo-controlled clinical trials conducted in patients
with narcolepsy with or without cataplexy, the most common adverse
reactions (≥5% and at least twice placebo) for WAKIX were insomnia
(6%), nausea (6%), and anxiety (5%). Other adverse reactions that
occurred at ≥2% and more frequently than in patients treated with
placebo included headache, upper respiratory tract infection,
musculoskeletal pain, heart rate increased, hallucinations,
irritability, abdominal pain, sleep disturbance, decreased
appetite, cataplexy, dry mouth, and rash.
In the placebo-controlled phase of the clinical trial conducted
in pediatric patients 6 years and older with narcolepsy with or
without cataplexy, the most common adverse reactions (≥5% and
greater than placebo) for WAKIX were headache (19%) and insomnia
(7%). The overall adverse reaction profile of WAKIX in the
pediatric clinical trial was similar to that seen in the adult
clinical trial program.
Drug Interactions
Concomitant administration of WAKIX with strong CYP2D6 inhibitors
increases pitolisant exposure by 2.2-fold. Reduce the dose of WAKIX
by half.
Concomitant use of WAKIX with strong CYP3A4 inducers decreases
exposure of pitolisant by 50%. Dosage adjustments may be
required.
H1 receptor antagonists that cross the blood-brain barrier may
reduce the effectiveness of WAKIX. Patients should avoid centrally
acting H1 receptor antagonists.
WAKIX is a borderline/weak inducer of CYP3A4. WAKIX may reduce
the effectiveness of sensitive CYP3A4 substrates, including
hormonal contraceptives. Patients using hormonal contraception
should be advised to use an alternative non-hormonal contraceptive
method during treatment with WAKIX and for at least 21 days after
discontinuing treatment.
Use in Specific Populations
There is a pregnancy exposure registry that monitors pregnancy
outcomes in women who are exposed to WAKIX during pregnancy.
Patients should be encouraged to enroll in the WAKIX pregnancy
registry if they become pregnant. To enroll or obtain information
from the registry, patients can call 1-800-833-7460.
The safety and effectiveness of WAKIX have not been established
for treatment of excessive daytime sleepiness in pediatric patients
less than 6 years of age with narcolepsy.
The safety and effectiveness of WAKIX have not been established
for treatment of cataplexy in pediatric patients with
narcolepsy.
WAKIX is extensively metabolized by the liver. WAKIX is
contraindicated in patients with severe hepatic impairment. Dosage
adjustment is recommended in patients with moderate hepatic
impairment.
WAKIX is not recommended in patients with end-stage renal
disease. Dosage adjustment of WAKIX is recommended in patients with
eGFR <60 mL/minute/1.73
m2.
Dosage reduction is recommended in patients known to be poor
CYP2D6 metabolizers; these patients have higher concentrations of
WAKIX than normal CYP2D6 metabolizers.
Please see the Full Prescribing Information for
WAKIX for more information.
To report suspected adverse reactions, contact Harmony
Biosciences at 1-800-833-7460 or the FDA at 1-800-FDA-1088
or www.fda.gov/medwatch.
About Narcolepsy
Narcolepsy is a rare, chronic, debilitating neurological disease of
sleep-wake state instability that impacts approximately 170,000
Americans and is primarily characterized by excessive daytime
sleepiness (EDS) and cataplexy – its two cardinal symptoms – along
with other manifestations of REM sleep dysregulation
(hallucinations and sleep paralysis), which intrude into
wakefulness. EDS is the inability to stay awake and alert during
the day and is the symptom that is present in all people living
with narcolepsy. In most patients, narcolepsy is caused by the loss
of hypocretin/orexin, a neuropeptide in the brain that supports
sleep-wake state stability. This disease affects men and women
equally, with typical symptom onset in adolescence or young
adulthood; however, it can take up to a decade to be properly
diagnosed.
About Idiopathic Hypersomnia
Idiopathic Hypersomnia (IH) is a rare and chronic neurological
disease that is characterized by excessive daytime sleepiness
(EDS) despite sufficient or even long sleep time. EDS in IH cannot
be alleviated by naps, longer sleep or more efficient sleep. People
living with IH experience significant EDS along with the symptoms
of sleep inertia (prolonged difficulty waking up from sleep) and
'brain fog' (impaired cognition, attention, and alertness). The
cause of IH is unknown, but it is likely due to alterations in
areas of the brain that stabilize states of sleep and
wakefulness. IH is one of the central disorders of hypersomnolence
and, like narcolepsy, is a debilitating sleep disorder that can
result in significant disruption in daily functioning.
About ZYN-002
ZYN-002 is the first-and-only pharmaceutically manufactured
synthetic cannabidiol devoid of THC and formulated as a
patent-protected permeation-enhanced gel for transdermal delivery
through the skin and into the circulatory system. The product is
manufactured through a synthetic process in a cGMP facility and is
not extracted from the cannabis plant. ZYN-002 does not contain
THC, the compound that causes the euphoric effect of cannabis, and
has the potential to be a nonscheduled product if approved.
Cannabidiol, the active ingredient in ZYN-002, has been granted
orphan drug designation by the United States Food and Drug
Administration (FDA) and the European Medicines
Agency (EMA) for the treatment of FXS and for the treatment of
22q. Additionally, ZYN-002 has received FDA Fast Track designation
for the treatment of behavioral symptoms in patients with FXS.
About Fragile X Syndrome
Fragile X syndrome (FXS) is a rare genetic disorder that is the
leading known cause of both inherited intellectual disability and
autism spectrum disorder. The disorder negatively affects synaptic
function, plasticity and neuronal connections, and results in a
spectrum of intellectual disabilities and behavioral symptoms, such
as social avoidance and irritability. While the exact prevalence is
unknown, upwards of 80,000 patients in the U.S. and
121,000 patients in the European Union and
the UK are believed to have FXS, based on FXS prevalence
estimates of approximately 1 in 4,000 to 7,000 in males and
approximately 1 in 8,000 to 11,000 in females. There is a
significant unmet medical need in patients living with FXS as there
are currently no FDA approved treatments for this disorder.
FXS is caused by a mutation in FMR1, a gene which modulates a
number of systems, including the endocannabinoid system, and most
critically, codes for a protein called FMRP. The FMR1 mutation
manifests as multiple repeats of a DNA segment, known as the CGG
triplet repeat, resulting in deficiency or lack of FMRP. FMRP helps
regulate the production of other proteins and plays a role in the
development of synapses, which are critical for relaying nerve
impulses, and in regulating synaptic plasticity. In people with
full mutation of the FMR1 gene, the CGG segment is repeated more
than 200 times, and in most cases causes the gene to not function.
Methylation of the FMR1 gene also plays a role in determining
functionality of the gene. In approximately 60% of patients with
FXS, who have complete methylation of the FMR1 gene, no FMRP is
produced, resulting in dysregulation of the systems modulated by
FMRP.
About 22q11.2 Deletion Syndrome
22q11.2 deletion syndrome (22q) is a disorder caused by a small
missing piece of the 22nd chromosome. The deletion occurs near the
middle of the chromosome at a location designated q11.2. It is
considered a mid-line condition, with physical symptoms including
characteristic palate abnormalities, heart defects, immune
dysfunction, and esophageal/ GI issues, as well as debilitating
neuropsychiatric and behavioral symptoms, including anxiety, social
withdrawal, ADHD, cognitive impairment and autism spectrum
disorder. It is estimated that 22q occurs in one in 4,000 live
births, suggesting that there are approximately 80,000 people
living with 22q in the U.S. and 129,000 in
the European Union and the UK. Patients with 22q
deletion syndrome are managed by multidisciplinary care providers,
and there are currently no FDA approved treatments for this
disorder.
About Clemizole Hydrochloride (EPX-100)
EPX-100, clemizole hydrochloride, is under development for the
treatment of Dravet syndrome (DS) and Lennox-Gastaut syndrome
(LGS). EPX-100 acts by targeting central 5-hydroxytryptamine
receptors to modulate serotonin signaling. The drug candidate is
administered orally twice a day in a liquid formulation and has
been developed based on a proprietary phenotype-based zebrafish
drug screening platform. DS is caused by a loss of function
mutation in the SCN1A gene, and scn1 mutant zebrafish replicate the
genetic etiology and phenotype observed in the majority of DS
patients. The scn1Lab mutant zebrafish model that expresses voltage
gated sodium channels has been used for high-throughput screening
of compounds that modulate Nav1.1 in the central nervous
system.
About Lorcaserin (EPX-200)
EPX-200, liquid formulation
of lorcaserin is under development for the treatment of DEEs
(Developmental Epileptic Encephalopathies). EPX-200 is a selective
5-HT2C receptor agonist. The drug candidate is developed based on a
proprietary phenotype-based zebrafish drug screening platform and
clinical data in patients with DEEs1,2.
About Dravet Syndrome
Dravet syndrome (DS) is a severe and progressive epileptic
encephalopathy that begins in infancy and causes significant impact
on patient functioning. DS begins in the first year of life and is
characterized by high seizure frequency and severity, intellectual
disability, and a risk of sudden unexpected death in
epilepsy. Approximately 85% of Dravet Syndrome cases are
caused by de novo loss-of-function (LOF) mutations in a
voltage-gated sodium channel gene, SCN1A1. DS has an estimated
incidence rate of 1:15,700.
About Lennox-Gastaut Syndrome
Lennox-Gastaut Syndrome (LGS) is a rare and drug-resistant
epileptic encephalopathy characterized by onset in children between
3-5 years of age. The underlying cause of LGS is unknown and can be
related to a wide range of factors including genetic differences
and structural differences in the brain. As a result, patients
experience multiple seizure types, including atonic seizures, and
developmental, cognitive, and behavioral issues. LGS affects
approximately 48,000 patients in the U.S.
About Harmony Biosciences
Harmony Biosciences is a pharmaceutical company dedicated to
developing and commercializing innovative therapies for patients
with rare neurological diseases who have unmet medical needs.
Driven by novel science, visionary thinking, and a commitment to
those who feel overlooked, Harmony Biosciences is nurturing a
future full of therapeutic possibilities that may enable patients
with rare neurological diseases to truly thrive. Established by
Paragon Biosciences, LLC, in 2017 and headquartered in Plymouth Meeting, PA, we believe that when
empathy and innovation meet, a better future can begin; a vision
evident in the therapeutic innovations we advance, the culture we
cultivate, and the community programs we foster. For more
information, please visit www.harmonybiosciences.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including statements regarding our full
year 2024 net product revenue, expectations for the growth and
value of WAKIX, plans to submit an sNDA for pitolisant in
idiopathic hypersomnia; our future results of operations and
financial position, business strategy, products, prospective
products, product approvals, the plans and objectives of management
for future operations and future results of anticipated products.
These statements are neither promises nor guarantees, but involve
known and unknown risks, uncertainties and other important factors
that may cause our actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements, including, but not limited to, the following: our
commercialization efforts and strategy for WAKIX; the rate and
degree of market acceptance and clinical utility of pitolisant in
additional indications, if approved, and any other product
candidates we may develop or acquire, if approved; our research and
development plans, including our plans to explore the therapeutic
potential of pitolisant in additional indications; our ongoing and
planned clinical trials; our ability to expand the scope of our
license agreements with Bioprojet Société Civile de Recherche
("Bioprojet"); the availability of favorable insurance coverage and
reimbursement for WAKIX; the timing of, and our ability to obtain,
regulatory approvals for pitolisant for other indications as well
as any other product candidates; our estimates regarding expenses,
future revenue, capital requirements and additional financing
needs; our ability to identify, acquire and integrate additional
products or product candidates with significant commercial
potential that are consistent with our commercial objectives; our
commercialization, marketing and manufacturing capabilities and
strategy; significant competition in our industry; our intellectual
property position; loss or retirement of key members of management;
failure to successfully execute our growth strategy, including any
delays in our planned future growth; our failure to maintain
effective internal controls; the impact of government laws and
regulations; 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;
statements related to our intended share repurchases and repurchase
timeframe and the significant costs and required management time as
a result of operating as a public company. These and other
important factors discussed under the caption "Risk Factors" in our
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the "SEC") on February 22,
2024, and our other filings with the SEC could cause actual
results to differ materially from those indicated by the
forward-looking statements made in this press release. Any such
forward-looking statements represent management's estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim
any obligation to do so, even if subsequent events cause our views
to change.
HARMONY BIOSCIENCES
HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED
STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(In thousands,
except share and per share data)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net product
revenue
|
|
$
|
186,038
|
|
$
|
160,268
|
|
$
|
513,467
|
|
$
|
413,610
|
Cost of product
sold
|
|
|
42,778
|
|
|
32,296
|
|
|
102,406
|
|
|
78,084
|
Gross
profit
|
|
|
143,260
|
|
|
127,972
|
|
|
411,061
|
|
|
335,526
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
25,387
|
|
|
17,499
|
|
|
111,159
|
|
|
45,757
|
Sales and
marketing
|
|
|
27,576
|
|
|
23,418
|
|
|
83,316
|
|
|
70,518
|
General and
administrative
|
|
|
28,587
|
|
|
22,546
|
|
|
81,487
|
|
|
67,417
|
Total operating
expenses
|
|
|
81,550
|
|
|
63,463
|
|
|
275,962
|
|
|
183,692
|
Operating
income
|
|
|
61,710
|
|
|
64,509
|
|
|
135,099
|
|
|
151,834
|
Loss on debt
extinguishment
|
|
|
—
|
|
|
(9,766)
|
|
|
—
|
|
|
(9,766)
|
Other (expense) income,
net
|
|
|
(124)
|
|
|
(5)
|
|
|
(228)
|
|
|
(34)
|
Interest
expense
|
|
|
(4,348)
|
|
|
(7,012)
|
|
|
(13,287)
|
|
|
(18,961)
|
Interest
income
|
|
|
4,932
|
|
|
4,106
|
|
|
14,065
|
|
|
10,634
|
Income before income
taxes
|
|
|
62,170
|
|
|
51,832
|
|
|
135,649
|
|
|
133,707
|
Income tax
expense
|
|
|
(16,077)
|
|
|
(13,371)
|
|
|
(39,631)
|
|
|
(31,461)
|
Net income
|
|
$
|
46,093
|
|
$
|
38,461
|
|
$
|
96,018
|
|
$
|
102,246
|
Unrealized (loss)
income on
investments
|
|
|
733
|
|
|
6
|
|
|
497
|
|
|
(365)
|
Comprehensive
income
|
|
$
|
46,826
|
|
$
|
38,467
|
|
$
|
96,515
|
|
$
|
101,881
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.81
|
|
$
|
0.64
|
|
$
|
1.69
|
|
$
|
1.71
|
Diluted
|
|
$
|
0.79
|
|
$
|
0.63
|
|
$
|
1.66
|
|
$
|
1.68
|
Weighted average
number
of shares of common stock
- basic
|
|
|
56,870,234
|
|
|
59,863,102
|
|
|
56,815,167
|
|
|
59,856,941
|
Weighted average
number
of shares of common stock
- diluted
|
|
|
58,103,963
|
|
|
60,681,676
|
|
|
57,754,016
|
|
|
60,892,992
|
HARMONY BIOSCIENCES
HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2024
|
|
2023
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
387,367
|
|
$
|
311,660
|
Investments,
short-term
|
|
|
23,109
|
|
|
41,800
|
Trade receivables,
net
|
|
|
81,502
|
|
|
74,140
|
Inventory,
net
|
|
|
6,915
|
|
|
5,363
|
Prepaid
expenses
|
|
|
16,057
|
|
|
12,570
|
Other current
assets
|
|
|
7,455
|
|
|
5,537
|
Total current
assets
|
|
|
522,405
|
|
|
451,070
|
NONCURRENT
ASSETS:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
750
|
|
|
371
|
Restricted
cash
|
|
|
270
|
|
|
270
|
Investments,
long-term
|
|
|
94,222
|
|
|
72,169
|
Intangible assets,
net
|
|
|
119,225
|
|
|
137,108
|
Deferred tax
asset
|
|
|
185,016
|
|
|
144,162
|
Other noncurrent
assets
|
|
|
6,247
|
|
|
6,298
|
Total noncurrent
assets
|
|
|
405,730
|
|
|
360,378
|
TOTAL ASSETS
|
|
$
|
928,135
|
|
$
|
811,448
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
10,532
|
|
$
|
17,730
|
Accrued
compensation
|
|
|
14,224
|
|
|
23,747
|
Accrued
expenses
|
|
|
109,673
|
|
|
99,494
|
Current portion of
long-term debt
|
|
|
15,000
|
|
|
15,000
|
Other current
liabilities
|
|
|
11,850
|
|
|
7,810
|
Total current
liabilities
|
|
|
161,279
|
|
|
163,781
|
NONCURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term debt,
net
|
|
|
167,847
|
|
|
178,566
|
Other noncurrent
liabilities
|
|
|
2,205
|
|
|
2,109
|
Total noncurrent
liabilities
|
|
|
170,052
|
|
|
180,675
|
TOTAL
LIABILITIES
|
|
|
331,331
|
|
|
344,456
|
COMMITMENTS AND
CONTINGENCIES (Note 13)
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common stock—$0.00001
par value; 500,000,000 shares authorized at
September 30, 2024 and December 31, 2023,
respectively; 57,030,897 and
56,769,081 shares issued and outstanding at
September 30, 2024 and
December 31, 2023, respectively
|
|
|
1
|
|
|
1
|
Additional paid in
capital
|
|
|
643,563
|
|
|
610,266
|
Accumulated other
comprehensive (loss) income
|
|
|
499
|
|
|
2
|
Accumulated
deficit
|
|
|
(47,259)
|
|
|
(143,277)
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
596,804
|
|
|
466,992
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
928,135
|
|
$
|
811,448
|
HARMONY BIOSCIENCES
HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
(In thousands except
share and per share data)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
GAAP net
income
|
|
$
|
46,093
|
|
$
|
38,461
|
|
$
|
96,018
|
|
$
|
102,246
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense (1)
|
|
|
175
|
|
|
2,221
|
|
|
531
|
|
|
3,061
|
Depreciation
|
|
|
7
|
|
|
144
|
|
|
261
|
|
|
350
|
Amortization
(2)
|
|
|
5,961
|
|
|
5,962
|
|
|
17,883
|
|
|
17,884
|
Stock-based
compensation expense
|
|
|
11,448
|
|
|
7,957
|
|
|
32,845
|
|
|
22,311
|
Licensing fee and
milestone payments (3)
|
|
|
1,000
|
|
|
-
|
|
|
26,500
|
|
|
750
|
Loss on debt
extinguishment (4)
|
|
|
-
|
|
|
9,766
|
|
|
-
|
|
|
9,766
|
Transaction related
costs (5)
|
|
|
-
|
|
|
-
|
|
|
17,095
|
|
|
-
|
Income tax effect
related to non-GAAP
adjustments (6)
|
|
|
(5,096)
|
|
|
(5,723)
|
|
|
(20,215)
|
|
|
(10,987)
|
Non-GAAP adjusted net
income
|
|
$
|
59,596
|
|
$
|
58,788
|
|
$
|
170,926
|
|
$
|
145,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP reported net
income per diluted share
|
|
$
|
0.79
|
|
$
|
0.63
|
|
$
|
1.66
|
|
$
|
1.68
|
Non-GAAP adjusted net
income per diluted share
|
|
$
|
1.03
|
|
$
|
0.97
|
|
$
|
2.96
|
|
$
|
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares of common
stock used in non-GAAP diluted per share
|
|
|
58,103,963
|
|
|
60,681,676
|
|
|
57,754,016
|
|
|
60,892,992
|
|
(1) Includes
amortization of deferred finance charges.
|
(2) Includes
amortization of intangible asset related to WAKIX.
|
(3) Amount represents
upfront licensing fee incurred upon closing the 2024 Bioprojet
Sublicense Agreement, milestone payment related to HBS-102 in
September 2024 and milestone payment related to HBS-102 in March
2023.
|
(4) Includes loss on
extinguishment of the Blackstone Credit Agreement.
|
(5) Includes IPR&D
charge related to the acquisition of Epygenix.
|
(6) Calculated using
the reported effective tax rate for the periods presented less
impact of discrete items.
|
Harmony Biosciences Investor Contact:
Brennan Doyle
484-539-9700
bdoyle@harmonybiosciences.com
Harmony Biosciences Media Contact:
Cate McCanless
202-641-6086
cmccanless@harmonybiosciences.com
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SOURCE Harmony Biosciences