Why Shares of Harmony Bioscience Are Slumping Tuesday
Shares of Harmony Bioscience Holdings (NASDAQ: HRMY) were down 26% early Tuesday afternoon after short-seller Scorpion Capital said it planned to file a citizen's petition with the Food and Drug Administration (FDA), asking for the withdrawal of Harmony's narcolepsy drug. The stock is down more than 39% so far this year.
On Tuesday, Scorpion Capital issued a report slamming Harmony Bioscience, saying it had received adverse event reports from the FDA regarding Harmony's narcolepsy therapy, Wakix (pitolisant). Harmony, a pharmaceutical company that focuses on neuroscience therapies, reported full-year 2022 revenue of $437.9 million, all from Wakix, a rise of 43%. The company also reported full-year net income of $181.5 million, up 426%.
Short-seller reports can be full of hyperbole. The report raised questions about the drug's toxicity and the credibility of Harmony's clinical trials for the therapy. It's important to note that Wakix was first approved by the FDA four years ago.
Source Fool.com
