Harmony: A Biotech With a Pulse (and a Plot Twist)

by

Listen, folks, I’ve been charting the rise and fall of companies since before they had stock tickers. Back then, it was quills and carrier pigeons. Honestly, the pigeons were more reliable. But the point is, I’ve seen it all. And for the last decade and a half, it’s been all growth stocks, soaring to the heavens like…well, like overinflated dirigibles. Everyone said they were overpriced. They kept going up. The value investors? Let’s just say they learned a lesson. A painful, wallet-lightening lesson. It’s like trying to argue with a caffeinated squirrel.

Now, I’m a historian, which means I’m supposed to be objective. But let’s be honest, I’m also a sucker for a good story. And in my search for companies worthy of my (totally imaginary) Voyager Portfolio, I stumbled upon something…unexpected. Biotech is usually a minefield, full of promises and pink slips. But Harmony Biosciences (HRMY +0.04%)? This little company…it’s got a pulse. And maybe, just maybe, a plot twist. It’s not a household name, which is suspicious in itself. I mean, everyone’s heard of Big Pharma, right? These guys? Radio silence. That’s what made me investigate. This first article is the beginning of a three-part series, so buckle up. It’s going to be a bumpy, and hopefully profitable, ride.

Choosing a Road Less Traveled (Or, Why Not Chase the Obvious?)

Every biopharmaceutical company, when it first opens its doors, faces a big decision. Do you go after the big fish – cancer, heart disease, the usual suspects? Millions of potential patients, a massive market…and a gazillion competitors. It’s like trying to win a pie-eating contest against Godzilla. Not a smart move. A new company needs to be…strategic.

So, some of these companies, the clever ones, they go after the rare diseases. Fewer patients, sure. But also, fewer competitors. It’s like finding a deserted beach. You might not get a tan, but you won’t have to fight for a square foot of sand. A successful rare-disease treatment? That’s a monopoly, folks. A beautiful, lucrative monopoly. It’s the kind of thing Captain Kidd would have envied.

Harmony, bless their slightly eccentric hearts, decided to go the rare disease route. They’re targeting neurological disorders that most companies wouldn’t touch with a ten-foot pole. It’s a risky strategy, but sometimes, the biggest rewards come from taking the biggest risks. It’s like betting on a horse named “Disappointment” – you might lose, but if you win, the payout is glorious.

Harmony and the Story of Pitolisant (Or, The Sleepytime Drug That’s Waking Up Investors)

Back in August 2019, before they even had their initial public offering, Harmony Biosciences got the green light from the FDA for their pitolisant treatment for narcolepsy. They call it Wakix. It’s a clever name, I’ll give them that. And here’s the kicker: it’s the only FDA-approved narcolepsy option that isn’t a controlled substance. That’s right, folks. No need to worry about getting addicted to staying awake. It’s a miracle! (Okay, maybe not a miracle. But it’s definitely a good thing.)

There are roughly 80,000 people in the U.S. diagnosed with narcolepsy. But Harmony estimates another 90,000 are walking around, unknowingly sleepy, never getting a proper diagnosis. That’s a lot of yawns! And Harmony is starting to capture a good chunk of that market. In the first five years, they’ve gotten about 8,000 patients on Wakix. And they’re adding several hundred new patients every quarter. That makes Wakix one of the most successful launches ever for a rare-disease treatment. It’s like finding a gold mine in your backyard.

Loading widget...

Two Avenues to Financial Success (Or, How to Make Money While People Sleep)

The success of Wakix puts Harmony in a very enviable position. They’re generating revenue, they’re making profits, and they’re growing rapidly. It’s like a snowball rolling downhill, getting bigger and bigger. And they’re not stopping there. They have a whole pipeline of potential treatments, both to improve their narcolepsy offerings and to expand into other areas.

Best of all, they can use the money from Wakix to fund their research. It’s a virtuous cycle. They make money by treating sleepy people, and then they use that money to develop treatments for other diseases. It’s brilliant! In the next article, we’ll take a closer look at just how lucrative the narcolepsy market has been for Harmony, and what they have planned for the future. Stay tuned, folks. This story is just getting started. And remember, a little sleepiness can be a very good thing…for your portfolio.

Read More

2026-01-26 20:02