Harmony Biosciences ($HRMY) trades at a depressed valuation despite strong profitability and cash generation. The stock sold off on a recent Fragile X Phase 3 miss, but the core WAKIX franchise and new indications (e.g., PWS) keep revenues and margins robust (~75% GM, ~29% operating margin). Technically, $HRMY is oversold (RSI ~25) and sitting just above 52-week lows ($26.26), creating an asymmetric long setup if $25–26 support holds. Near-term resistance sits at $30–32; a base above $30 opens the path to $36–38 and potentially a re-rating toward consensus targets in the mid-40s. Key risks are pipeline execution and payer dynamics; upside drivers include continued cash flow strength, label expansion, and any positive pipeline or BD catalyst.
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