Harmony Biosciences Reports 16.1% Revenue Growth, Net Income Increase in Q3 2024

Harmony Biosciences Holdings, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved net product revenue of $186.0 million for the third quarter, marking a 16.1% increase from $160.3 million in the same period of 2023. For the nine months ended September 30, 2024, net product revenue reached $513.5 million, a 24.1% increase from $413.6 million year-over-year. This growth was attributed to an 11.2% increase in units shipped and a 7% price increase, although it was partially offset by higher rebates and co-pay assistance.

Gross profit for the third quarter was $143.3 million, up from $128.0 million in Q3 2023, while operating income decreased slightly to $61.7 million from $64.5 million in the prior year. For the nine-month period, operating income was $135.1 million, down from $151.8 million in 2023. Net income for Q3 2024 was $46.1 million, compared to $38.5 million in Q3 2023, while net income for the nine months was $96.0 million, down from $102.2 million in the same period last year.

Total assets increased to $928.1 million as of September 30, 2024, from $811.4 million at the end of 2023, with total stockholders’ equity rising to $596.8 million from $467.0 million. The company reported cash and cash equivalents of $387.4 million, up from $311.7 million at the end of 2023.

Harmony has made strategic acquisitions, including Zynerba Pharmaceuticals in October 2023 and Epygenix Therapeutics in April 2024, enhancing its portfolio in rare neurological diseases. The acquisition of Epygenix granted exclusive rights to clemizole for treating Dravet Syndrome and Lennox-Gastaut Syndrome, with potential milestone payments totaling up to $645 million.

Research and development expenses surged to $25.4 million for Q3 2024, a 45.1% increase from the previous year, driven by costs associated with ZYN002 and EPX100, as well as personnel costs. For the nine-month period, R&D expenses totaled $111.2 million, a 142.9% increase year-over-year.

The company also reported an increase in sales and marketing expenses, which rose to $28.0 million for Q3 2024, reflecting a 17.8% increase compared to the same period in 2023. General and administrative expenses increased by 26.8% for Q3 2024, primarily due to legal and professional fees related to patent lawsuits.

As of September 30, 2024, Harmony's accumulated deficit was $47.3 million, a significant improvement from $143.3 million at the end of 2023. The company maintains a positive liquidity outlook, believing its existing cash and cash from operations will meet its liquidity needs for the next twelve months.