Harmony Biosciences Holdings, Inc. (HRMY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Performance in the court reflects the strong underlying demand for WCAG, partially offset by the seasonal market access headwinds the industry sees at the start of every year. Cost of goods or products sold was 20.7% of net sales in comparison with 17.3% one year ago. This year-over-year increase in cost of products sold as a percentage of net revenue was almost entirely driven by new royalties related to the Novidium License Agreement. providing new development opportunities in broader CNS indications. We reported total operating expenses for the first quarter of $133.6 million compared to $96.5 million in the same quarter in 2025. The growth in expenses reflects continued investment in R&D and ongoing investments in the commercialization of weight fixing and narcolepsy. These operating expenses also include the costs associated with upfront licensing fees of $32 million or $0.45 per share on a fully taxed basis related to the amorphous license agreements. Without these costs, operating expenses were up around 5%. Gap net income for the first quarter of 2026 was $32.5 million or $0.55 per share. This compares with $45.6 million, or $0.78 per share. Of course, that includes $0.45 in costs related to the in-license of the amorphous form of Pitocin and new development opportunities. We ended the first quarter with $870.5 million in cash and cash equivalents. Cash flow generation in the quarter was muted by the licensing fees and a large reduction in accrued expenses and a modest reduction of debt. We ended the quarter with $160 million in debt, cash flow generation will reaccelerate in the coming quarters. That said, it's our intent to deploy cash into business development with the objectives of enhancing revenues in the 2028 to 2032 timeframe, consistent with our four...