Q2 FY2026
Filed Aug 4, 2026WAKIX net product revenue grew 30% year over year to $261.3 million, while Harmony reiterated 2026 WAKIX net revenue guidance of $1.0 billion to $1.04 billion and reported initial Phase 1 SAD data for BP-205.
WAKIX delivered 30% year-over-year net product revenue growth, estimated average patients increased by 450 to 8,950, total operating expenses declined 5%, and net income rose to $75.4 million. The company reiterated its full-year WAKIX net revenue guidance and reported favorable BP-205 Phase 1 SAD data.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net product revenueGAAP | $261.3 million | – | 30% |
| Estimated average number of patientsother | 8,950 | increased 450 | – |
| Cost of product soldGAAP | $63.2 million | – | 66% increase |
| Cost of product sold as a percentage of net product revenueGAAP | 24.2% | – | – |
| Net incomeGAAP | $75.4 million | – | – |
| Diluted earnings per shareGAAP | $1.28 per diluted share | – | – |
| Research and Development expensesGAAP | $46.6 million | – | 7% decrease |
| Sales and Marketing expensesGAAP | $34.1 million | – | 13% increase |
| General and Administrative expensesGAAP | $28.1 million | – | 17% decrease |
| Total Operating expensesGAAP | $108.8 million | – | 5% decrease |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| WAKIXContinued strong demand for WAKIX within the large narcolepsy market opportunity, disciplined commercial execution across the franchise and the product's broad clinical utility. | $261.3 million | – | 30% |
2026 outlook
- Revenue$1.0 billion to $1.04 billion
- NoteMultiple ascending dose (MAD) data in healthy volunteers expected in Q4
- NoteInitiate Phase 1b study in sleep-deprived healthy volunteers in Q3; data expected in early 2027
- NoteInitiating Phase 2 studies to evaluate multiple potential CNS indications in mid-2027
- NotePitolisant GR target PDUFA date of April 1, 2027
- NotePitolisant HD topline data expected in 2027; anticipated PDUFA date in 2028
- NoteWAKIX Phase 3 trial in PWS topline data expected in mid-2027 and anticipated PDUFA date in 2028
- NoteEPX-100 topline data expected in 1H 2027 and anticipated PDUFA dates in 2028
What drove it
- Estimated average number of patients grew 450 to 8,950 in Q2.
- Harmony expanded field sales, remote sales, field reimbursement and patient outreach teams, with all roles hired, trained and fully deployed in 2Q.
- The company launched an online portal and changed its reimbursement support process to enable patients to secure WAKIX faster and with higher success rate.
- Phase 1 SAD data for BP-205 showed a short time to maximum plasma concentration in the range of 30 to 75 minutes, mean half-life of approximately 25h across dose groups, dose proportional exposure, and no age or gender differences in PK parameters.
- BP-205 was generally safe and well tolerated with no serious or severe TEAEs and no cardiovascular, hepatic or visual abnormalities.
- R&D expense declined primarily because a $15.0 million up-front payment related to the CiRC agreement was recorded in the second quarter of 2025 with no corresponding amount in the current-year period.
- G&A expense declined primarily because a charge related to an ANDA settlement was recorded in the second quarter of 2025 with no corresponding amount in the current-year period.
Concerns
- Cost of product sold increased 66%, and cost of product sold as a percentage of net product revenue increased to 24.2% from 19.0%, primarily due to new royalties related to the Novitium license agreement.
- Sales and Marketing expense increased 13%, primarily driven by the expansion of field-based teams.
- BP-205 MAD data are not expected until Q4, and Phase 1b data in sleep-deprived healthy volunteers are expected in early 2027.
- AET ANDA litigation bench trial has concluded, with closing arguments called for October 22, 2026.
- EPX-100 Phase 3 programs remain in active enrollment, with topline data expected in 1H 2027.
What to watch
- WAKIX execution against reiterated 2026 net revenue guidance of $1.0 billion to $1.04 billion.
- Estimated average patient growth and the effect of the expanded commercial and reimbursement-support teams.
- The impact of Novitium-related royalties on cost of product sold as a percentage of net product revenue.
- BP-205 MAD data expected in Q4 and Phase 1b data expected in early 2027.
- The April 1, 2027 target PDUFA date for Pitolisant GR.
- Pitolisant HD, WAKIX PWS and EPX-100 clinical milestones expected in 2027 and anticipated PDUFA dates in 2028.
- The October 22, 2026 closing arguments in the AET ANDA litigation.
Balance sheet and cash flow
- Cash, cash equivalents and investments of $962.5 million as of June 30, 2026
Analysis
Harmony reported a strong second quarter, led by WAKIX net product revenue of $261.3 million, up 30% from $200.5 million in the same period in 2025. Estimated average patients increased by 450 to 8,950, while the company attributed revenue performance to sustained demand, commercial execution and WAKIX's broad clinical utility. Management reiterated that WAKIX remains on track for full-year net revenue of $1.0 billion to $1.04 billion.
Profitability improved despite higher product costs. Net income was $75.4 million, or $1.28 per diluted share, compared with $39.8 million, or $0.68 per diluted share, in the same quarter in 2025. Total operating expenses declined 5% to $108.8 million as lower R&D and G&A expense more than offset a 13% increase in Sales and Marketing expense. The R&D and G&A declines each reflected prior-year items that did not recur in the current period.
The principal margin item requiring attention is cost of product sold. It rose 66% to $63.2 million, with cost of product sold as a percentage of net product revenue increasing to 24.2% from 19.0%. Harmony said the higher percentage was primarily driven by new royalties related to the Novitium license agreement. The company continued commercial investment, citing the fully deployed expansion of its sales, reimbursement and patient outreach teams and a revised reimbursement-support process.
Pipeline progress centered on BP-205. Phase 1 SAD data showed a Tmax in the range of 30 to 75 minutes, a mean half-life of approximately 25h across dose groups, dose proportional exposure, and generally favorable safety and tolerability. MAD data are expected in Q4, and Phase 1b data in sleep-deprived healthy volunteers are expected in early 2027. Harmony also cited upcoming milestones for Pitolisant GR, Pitolisant HD, WAKIX in PWS and EPX-100, while reporting cash, cash equivalents and investments of $962.5 million as of June 30, 2026.
Management, verbatim
Our record second-quarter revenue reflects sustained demand for WAKIX and keeps us firmly on track to deliver over $1 billion in revenue this year. With this strong foundation, we are aggressively advancing our pipeline, with our orexin-2 agonist BP-205 as the centerpiece, that we believe can create significant long-term value for both patients and shareholders.
Jeffrey M. Dayno, MD, President and Chief Executive Officer of Harmony Biosciences
The Phase 1 clinical PK and safety/tolerability data for BP-205 that we shared today, together with pre-clinical data demonstrating the highest potency of any orexin-2 agonist currently in the clinic, reinforce our conviction that BP-205 has the potential to be the best-in-class orexin-2 agonist with broad clinical utility across multiple CNS indications.
Jeffrey M. Dayno, MD, President and Chief Executive Officer of Harmony Biosciences
Not in the filing
stated, not guessed- Gross margin
- Operating income
- Non-GAAP revenue, earnings, EPS or other non-GAAP measures
- Prior-quarter comparisons for reported financial metrics
- Operating cash flow
- Free cash flow
- Debt
- Share repurchases
- Dividends
- Cash, cash equivalents and investments comparison period date is truncated in the provided filing text
- Prior guidance was not provided
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.