Q4 2025 Harmony Biosciences Holdings Inc Earnings Call

February 24, 2026

Speaker #2: Good morning. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to Harmony Biosciences' fourth quarter and full year 2025 financial results conference call.

Speaker #2: All participant lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question at that time, please press star 1 on your telephone keypad.

Speaker #2: Please be advised that today's conference may be recorded. Lastly, if you should require operator assistance, please press star zero. I will now turn the call over to Matthew Beck from Aster Partners.

Speaker #2: Please go ahead.

Operator: Please go ahead.

Speaker #1: Thank you, operator. Good morning, everyone, and thank you for joining us today as we review Harmony Biosciences' fourth quarter 2025 financial results and provide a business update.

Matthew Beck: Thank you, operator. Good morning, everyone, and thank you for joining us today as we review Harmony Biosciences Q4 2025 financial results and provide a business update. Before we start, I encourage everyone to go to the investor section of our website to find the materials that accompany our discussion today, including a reconciliation of our GAAP to non-GAAP financial measures. At this stage of our life cycle, we believe the non-GAAP financial results better represent the underlying business performance. Our speakers on today's call are Dr. Jeffrey M. Dayno, President and CEO, Adam Zeske, Chief Commercial Officer, Dr. Kumar Budur, Chief Medical and Scientific Officer, and Sandip Kapadia, Chief Financial and Administrative Officer. As a reminder, we will be making forward-looking statements today, which are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties.

Speaker #1: Before we start, I encourage everyone to go to the investor section of our website to find the materials that accompany our discussion today including a reconciliation of our gap-to-non-gap financial measures.

Speaker #1: At this stage of our life cycle, we believe the non-gap financial results better represent the underlying business performance. Our speakers on today's call are Dr. Jeffrey Dayno, President and CEO; Adam Zaeske, Chief Commercial Officer; Dr. Kumar Budur, Chief Medical and Scientific Officer; and Sandeep Kapadia, Chief Financial and Administrative Officer.

Speaker #1: As a reminder, we will be making forward-looking statements today, which are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties.

Speaker #1: Our actual results may differ materially, and we undertake no obligation to update these statements, even if circumstances change. We encourage you to consult the risk factors referenced in our SEC filings for additional details.

Matthew Beck: Our actual results may differ materially, and we undertake no obligation to update these statements even as circumstances change. We encourage you to consult the risk factors referenced in our SEC filings for additional details. I would now like to turn the call over to our CEO, Dr. Jeffrey Dayno. Jeff?

Speaker #1: I would now like to turn the call over to our CEO, Dr. Jeffrey Dayno. Jeff?

Speaker #2: Thank you, Matt. Good morning, everyone, and thanks for joining our call today. I want to start off by recognizing the entire Harmony team for another outstanding quarter and a remarkable year in 2025.

Jeffrey M. Dayno: Thank you, Matt. Good morning, everyone, and thanks for joining our call today. I want to start off by recognizing the entire Harmony team for another outstanding quarter and a remarkable year in 2025. Our Q4 results reflect strong, sustained execution and have positioned us to achieve blockbuster status for Wakix this year. In Q4, we delivered $243.8 million in net product revenue, up from $201.3 million in the same period last year, driven by continued strong demand for Wakix based on its broad clinical utility and ongoing executional excellence by our commercial team. Q4 2025 marked the third consecutive quarter with approximately 400+ average patient adds, the first time in franchise history. This quarter's net patient adds brings us to approximately 8,500 average patients on Wakix.

Speaker #2: Our fourth quarter results reflect strong sustained execution and have positioned us to achieve blockbuster status for Wakex this year. In Q4, we delivered 243.8 million dollars in net product revenue, up from 201.3 million in the same period last year.

Speaker #2: Driven by continued strong demand for Wakex, based on its broad clinical utility and ongoing executional excellence by our commercial team. Q4 '25 marked the third consecutive quarter with approximately 400-plus average patient ads, the first time in franchise history.

Speaker #2: This quarter's net patient ads brings us to approximately 8,500 average patients on Wakex. With 80,000 diagnosed patients with narcolepsy, there continues to be a large market opportunity to support strong growth.

Jeffrey M. Dayno: With 80,000 diagnosed patients with narcolepsy, there continues to be a large market opportunity to support strong growth. For full year 2025, Wakix generated $868.5 million in net product revenue, representing strong year-over-year growth and extending to 6 consecutive years of revenue growth and profitability. Looking ahead to 2026, we are guiding Wakix net revenue to blockbuster status of $1 to $1.04 billion for the first time in franchise history, underscoring the durability of the Wakix brand and the strength of our commercial engine. On the IP front, we have made good progress toward the goal of securing the Wakix franchise. We recently settled with 3 generic filers, resulting in us having settled with 6 of the 7 ANDA filers.

Speaker #2: For full year 2025, Wakex generated 868.5 million in net product revenue, representing strong year-over-year growth and extending to six consecutive years of revenue growth and profitability.

Speaker #2: Looking ahead to 2026, we are guiding Wakix's net revenue to blockbuster status of $1.00 to $1.04 billion for the first time in franchise history.

Speaker #2: Underscoring the durability of the Wakex brand, and the strength of our commercial engine. On the IP front, we have made good progress toward the goal of securing the Wakex franchise.

Speaker #2: We recently settled with three generic filers, resulting in us having settled with six of the seven ANDA filers. Based on these settlements, generic entry would occur no sooner than March of 2030 if we are granted pediatric exclusivity, which we are on track to obtain.

Jeffrey M. Dayno: Based on these settlements, generic entry would occur no sooner than March of 2030 if we are granted pediatric exclusivity, which we are on track to obtain. As for last week's trial, we remain confident in the strength of our IP and will continue to vigorously defend it as the legal process and trial continues. In addition to the strong growth of Wakix, we are advancing the next generation pitolisant franchise. Pitolisant GR will extend the Wakix franchise and our leadership in narcolepsy as a line extension of Wakix with its broad clinical utility. We are on track for NDA submission in Q2 this year, with a target PDUFA date in Q1 2027. Pitolisant HD is designed to expand the pitolisant franchise into unique indications in orphan rare diseases, addressing unmet medical needs.

Speaker #2: As for last week's trial, we remain confident in the strength of our IP and will continue to vigorously defend it as the legal process and trial continue.

Speaker #2: In addition to the strong growth of Wakex, we are advancing the next generation Pitollison franchise. Pitollison GR will extend the Wakex franchise and our leadership in narcolepsy as a line extension of Wakex with its broad clinical utility.

Speaker #2: We are on track for NDA submission in Q2 this year with a target PDUFA date in Q1 2027. Pitollison HD is designed to expand the Pitollison franchise into unique indications in orphan rare diseases, addressing unmet medical needs.

Speaker #2: And we now have an opportunity to explore a new Pitollison formulation to pursue broader indications in CNS patient populations, in which fatigue is a prominent symptom.

Jeffrey M. Dayno: We now have an opportunity to explore a new pitolisant formulation to pursue broader indications in CNS patient populations in which fatigue is a prominent symptom. This strategy is a mechanism-based approach, as fatigue is mediated through histamine circuits in the brain, and pitolisant works by upregulating histamine transmission in the brain, along with other neurotransmitters. This work is supported by newly licensed IP with patent protection until 2042, and we are excited for the opportunity to explore broader CNS indications with pitolisant. Kumar will provide more color on this opportunity later in the call. Our robust late-stage pipeline continues to advance, with five ongoing phase 3 registrational trials towards five distinct CNS indications, and we are making good progress. These trials set us up for multiple catalysts over the next few years and, if successful, meaningful long-term value creation.

Speaker #2: This strategy is a mechanism-based approach as fatigue is mediated through histamine circuits in the brain, and Pitollison works by upregulating histamine transmission in the brain along with other neurotransmitters.

Speaker #2: This work is supported by newly licensed IP with patent protection until 2042. And we are excited for the opportunity to explore broader CNS indications with Pitollison.

Speaker #2: Kumar will provide more color on this opportunity later in the call. Our robust late-stage pipeline continues to advance with five ongoing Phase 3 registrational trials toward five distinct CNS indications, and we are making good progress.

Speaker #2: These trials set us up for multiple catalysts over the next few years and, if successful, meaningful long-term value creation. Kumar will provide more details on the progress of our pipeline programs and the timing of these important catalysts during his R&D updates.

Jeffrey M. Dayno: Kumar will provide more details on the progress of our pipeline programs and the timing of these important catalysts during his R&D updates. In summary, Harmony enters 2026 with powerful momentum, a clear path to blockbuster status for Wakix in narcolepsy alone, record revenues and a large market opportunity that remains in narcolepsy for continued growth of Wakix, a lifecycle management strategy that we are advancing to extend the success of Wakix, expand next-generation pitolisant into unique indications in orphan rare CNS disorders, along with our new opportunity to explore broader CNS indications with a new formulation of pitolisant, driven by a mechanism-based approach, and a robust late-stage pipeline with 5 ongoing Phase 3 registrational trials towards 5 distinct CNS indications.

Speaker #2: In summary, Harmony enters 2026 with powerful momentum: a clear path to blockbuster status for Wakex in narcolepsy alone, record revenues and a large market opportunity that remains in narcolepsy for continued growth of Wakex, a lifecycle management strategy that we are advancing to extend the success of Wakex, expand next-generation Pitollison into unique indications in orphan rare CNS disorders, along with our new opportunity to explore broader CNS indications with a new formulation of Pitollison driven by a mechanism-based approach.

Speaker #2: And a robust late-stage pipeline with five ongoing Phase 3 registrational trials toward five distinct CNS indications. All of this reinforces our belief that we have built something rare in this industry, a profitable, self-funding biotech company with a strong balance sheet well-positioned to build out our pipeline and expand our commercial portfolio to drive long-term value creation.

Jeffrey M. Dayno: All of this reinforces our belief that we have built something rare in this industry: a profitable, self-funding biotech company with a strong balance sheet, well-positioned to build out our pipeline and expand our commercial portfolio to drive long-term value creation. With that, I'll turn the call over to Adam Zeske, our Chief Commercial Officer, for an update on our outstanding commercial performance. Adam?

Speaker #2: With that, I'll turn the call over to Adam Zaeske, our Chief Commercial Officer for an update on our outstanding commercial performance. Adam?

Speaker #1: Thank you, Jeff. 2025 marked a year of unprecedented and record-setting performance for Wakex. And that performance continued in the fourth quarter. In Q4 of 2025, Wakex continued its remarkable trajectory with the third consecutive quarter of approximately 400 or more average patient ads.

Adam Zeske: Thank you, Jeff. 2025 marked a year of unprecedented and record-setting performance for Wakix, and that performance continued in Q4. In Q4 of 2025, Wakix continued its remarkable trajectory, with a third consecutive quarter of approximately 400 or more average patient adds. The first time this has been achieved in the history of the franchise. This level of sustained momentum speaks directly to the strength of the brand and the consistency of our execution. What's driving this performance is clear. Wakix maintains a unique, highly differentiated position as the only non-scheduled treatment option, which continues to fuel broad clinical adoption. Brand awareness, perceived efficacy, tolerability, and stable payer coverage remain exceptionally strong.

Speaker #1: The first time this has been achieved in the history of the franchise. This level of sustained momentum speaks directly to the strength of the brand and the consistency of our execution.

Speaker #1: What's driving this performance is clear: WAKIX maintains a unique, highly differentiated position as the only non-scheduled treatment option, which continues to fuel broad clinical adoption.

Speaker #1: Brand awareness, perceived efficacy, tolerability, and stable payer coverage remain exceptionally strong. And we've sharpened our commercial fundamentals from field deployment and call planning to refined messaging, targeted promotion, new payer wins, and better patient support processes that shorten time to dispense and boost conversion.

Adam Zeske: We've sharpened our commercial fundamentals from field deployment and call planning to refined messaging, targeted promotion, new payer wins, and better patient support processes that shorten time to dispense and boost conversion. The compelling value proposition of Wakix, combined with continued strategic adjustments and strong operational execution, are delivering results, giving us confidence heading into 2026. In addition, right now, we are expanding our field-based teams by almost 20% across our field sales, field reimbursement, and remote sales teams, and we've already made progress in hiring for these roles. This investment will increase our presence in the market and demonstrates confidence in our continued growth. We will launch a new online portal to enable easier and faster access for patients, and we're continuing to deploy process improvements to further improve time to dispense and success rate.

Speaker #1: The compelling value proposition of Wakex combined with continued strategic adjustments and strong operational execution are delivering results giving us confidence heading into 2026. In addition, right now, we are expanding our field-based teams by almost 20% across our field sales, field reimbursement, and remote sales teams, and we've already made progress in hiring for these roles.

Speaker #1: This investment will increase our presence in the market and demonstrates confidence in our continued growth. We will launch a new online portal to enable easier and faster access for patients, and we're continuing to deploy process improvements to further improve time to dispense and success rate.

Speaker #1: And we'll continue to look for opportunities for additional improvements and efficiencies moving forward. We're also extremely excited about the recent FDA approval of Wakex for the treatment of cataplexy in pediatric patients six years of age and older with narcolepsy.

Adam Zeske: We'll continue to look for opportunities for additional improvements and efficiencies moving forward. We're also extremely excited about the recent FDA approval of Wakix for the treatment of cataplexy in pediatric patients 6 years of age and older with narcolepsy. This approval further demonstrates the clinical value of Wakix for pediatric patients who experience cataplexy and gives their healthcare providers the option of prescribing Wakix to address excessive daytime sleepiness, cataplexy, or both in people 6 years of age and older living with narcolepsy. Our commercial teams were well prepared ahead of this approval with robust promotional strategy and began executing on those plans from the day of approval. With all of this momentum, we've announced full-year revenue guidance for Wakix to achieve blockbuster status of between $1 billion and 1.04 billion in narcolepsy alone.

Speaker #1: This approval further demonstrates the clinical value of Wakex for pediatric patients who experience cataplexy and gives their healthcare providers the option of prescribing Wakex to address excessive daytime sleepiness, cataplexy, or both in people six years of age and older living with narcolepsy.

Speaker #1: Our commercial teams were well-prepared ahead of this approval. With robust promotional strategy and began executing on those plans from the day of approval. With all of this momentum, we've announced full-year revenue guidance for Wakex to achieve blockbuster status of between $1 billion and $1,040 billion in revenue in narcolepsy alone.

Speaker #1: Looking ahead, Pitollison GR and Pitollison HD give us the opportunity to extend and expand the franchise with differentiated formulations that address important unmet needs while fully leveraging the commercial engine we've built.

Adam Zeske: Looking ahead, pitolisant GR and pitolisant HD give us the opportunity to extend and expand the franchise with differentiated formulations that address important unmet needs while fully leveraging the commercial engine we've built. Early feedback from market research with healthcare providers and payers has been highly encouraging, and we're preparing the organization to drive the next phase of growth as these assets come to market. In short, our commercial performance has never been stronger. The fundamentals are sound, execution is disciplined, and we have a clear path to sustained growth. Now, I'd like to turn the call over to our Chief Medical and Scientific Officer, Kumar Badur, to discuss the advancements in our clinical development programs. Kumar?

Speaker #1: Early feedback from market research with healthcare providers and payers has been highly encouraging, and we're preparing the organization to drive the next phase of growth as these assets come to market.

Speaker #1: In short, our commercial performance has never been stronger. The fundamentals are sound, execution is disciplined, and we have a clear path to sustained growth.

Speaker #1: Now, I'd like to turn the call over to our Chief Medical and Scientific Officer, Kumar Budur, to discuss the advancements in our clinical development programs.

Speaker #1: Kumar?

Speaker #3: Thank you, Adam. Good morning, everyone. And thank you for joining us today. Q4 2025 capped a year of significant scientific and clinical progress for Harmony and we are entering 2026 with one of the most robust late-stage CNS pipelines in the industry.

Kumar Budur: Thank you, Adam. Good morning, everyone, and thank you for joining us today. Q4 2025 capped a year of significant scientific and clinical progress for Harmony, and we are entering 2026 with one of the most robust late-stage CNS pipelines in the industry. We now have 5 ongoing phase 3 registrational clinical trials across 5 distinct CNS indications, underscoring the breadth and depth of our development programs. I'll start with updates for our sleep-wake franchise. I'm pleased to highlight a new indication for Wakix that the FDA approved on 13 February. The FDA approved Wakix for cataplexy in patients 6 years of age and older. This is another important milestone for Wakix, and it is now approved for both excessive daytime sleepiness and cataplexy in adults and children 6 years of age and older.

Speaker #3: We now have five ongoing Phase 3 registrational ational clinical trials across five distinct CNS indications underscoring the breadth and depth of our development programs.

Speaker #3: I'll start with updates for our sleep-wake franchise. I'm pleased to highlight a new indication for Wakix that the FDA approved on February 13th. The FDA approved Wakix for cataplexy in patients six years of age and older. This is another important milestone for Wakix, and it is now approved for both excessive daytime sleepiness and cataplexy in adults and children six years of age and older.

Speaker #3: This approval also advances our efforts towards achieving pediatric exclusivity for Wakex which is an additional six months of regulatory exclusivity at the back end of the longest patent for Wakex.

Kumar Budur: This approval also advances our efforts towards achieving pediatric exclusivity for Wakix, which is an additional six months of regulatory exclusivity at the back end of the longest patent for Wakix. The data from the ongoing phase 3 study in Prader-Willi syndrome, the TEMPO study, is the other requirement for pediatric exclusivity, we are on track for the top-line data from the TEMPO study in second half of this year. Across our next-gen pitolisant programs, pitolisant GR continues to advance as a fast-to-market strategy after demonstrating bioequivalence to Wakix in a pivotal bioequivalence study and has the ability to initiate treatment at the therapeutic dose range at 17.8 milligrams, eliminating the need for titration, which is an important differentiation. We remain on track for an NDA submission in Q2 2026 and target PDUFA in Q1 2027.

Speaker #3: The data from the ongoing Phase 3 study in Prader-Willi syndrome the Tempo study is the other requirement for pediatric exclusivity and we are on track for the top-line data from the Tempo study in second half of this year.

Speaker #3: Across our next-gen Pitollisin programs, Pitollisin GR continues to advance as a fast-to-market strategy after demonstrating bioequivalence to Wakex in a pivotal bioequivalence study and has the ability to initiate treatment at the therapeutic dose range at 17.8 milligrams eliminating the need for titration which is an important differentiation.

Speaker #3: We remain on track for an NDA submission in Q2 2026 and target PDUFA in Q1 2027. Pitollisin HD, our enhanced formulation with an optimized PK profile and a higher dose, remains on track for top-line data in 2027 and PDUFA in 2028.

Kumar Budur: Pitolisant HD, our enhanced formulation with an optimized PK profile and a higher dose, remains on track for top-line data in 2027 and PDUFA in 2028. The Phase 3 registrational clinical trials in narcolepsy and IH, that is the ONSTRIDE 1 and ONSTRIDE 2 studies, are ongoing. ONSTRIDE 1 is a prospective, placebo-controlled, parallel-arm, double-blind, randomized clinical trial comparing Pitolisant HD and placebo. This is an eight-week study evaluating excessive daytime sleepiness via subjective and objective endpoints, that is, ESS and MWT, and we are also evaluating cataplexy and fatigue in this study. ONSTRIDE 2 is also a prospective, placebo-controlled, parallel-arm, double-blind, randomized clinical trial comparing Pitolisant HD and placebo. This is an eight-week study evaluating symptoms of idiopathic hypersomnia via IHSS and sleep inertia via sleep inertia scale.

Speaker #3: The Phase 3 registrational clinical trials in narcolepsy and IH—that is, the ON-STRIDE 1 and ON-STRIDE 2 studies—are ongoing. ON-STRIDE 1 is a prospective, placebo-controlled, parallel-arm, double-blind, randomized clinical trial comparing Pitolisant HD and placebo.

Speaker #3: This is an eight-week study evaluating excessive daytime sleepiness via subjective and objective endpoints that is ESS and MWT and we are also evaluating cataplexy and fatigue in this study.

Speaker #3: On-stride two is also a prospective placebo-controlled parallel arm double-blind randomized clinical trial comparing Pitollisin HD and placebo. This is an eight-week study evaluating symptoms of idiopathic hypersomnia via IHSS and sleep inertia via sleep inertia scale.

Speaker #3: The sample size for each of these studies is approximately 200 patients and both programs are pursuing differentiated labels. Fatigue in narcolepsy and sleep inertia in idiopathic hypersomnia.

Kumar Budur: The sample size for each of these studies is approximately 200 patients. Both programs are pursuing differentiated labels: fatigue in narcolepsy and sleep inertia in idiopathic hypersomnia. Both GR and HD formulations have utility patents filed, extending and expanding the pitolisant franchise potentially into the 2040s. We are also very excited to announce the opportunity to explore broader CNS indications with a new formulation of pitolisant, with an issued patent until 2042. As we have discussed in the past, the histaminergic mechanism of action of pitolisant is uniquely positioned to address all three different dimensions of fatigue, physical, emotional, and cognition. We have already generated clinical data to support the utility of pitolisant to treat fatigue.

Speaker #3: Both GR and HD formulations have utility patents filed, extending and expanding the Pitollisin franchise potentially into the 2040s. We are also very excited to announce the opportunity to explore broader CNS indications with a new formulation of Pitollisin, with an issued patent until 2042.

Speaker #3: As we have discussed in the past, the histaminergic mechanism of fraction of Pitollisin is uniquely positioned to address all three different dimensions of fatigue: physical, emotional, and cognition, and we have already generated clinical data to support the utility of Pitollisin to treat fatigue.

Speaker #3: We plan to evaluate this new formulation for fatigue in broader indications with fatigue in multiple sclerosis of the lead indications and explore other opportunities such as post-stroke fatigue and fatigue in Parkinson's disease.

Kumar Budur: We plan to evaluate this new formulation for fatigue in broader indications, with fatigue in multiple sclerosis as the lead indication, and explore other opportunities such as post-stroke fatigue and fatigue in Parkinson's disease. Our current efforts are focused on formulation optimization and new modes of delivery, and towards the phase 1 PK study. Beyond pitolisant, our orexin 2 receptor agonist, BP1.15205, is enrolling in our phase 1 clinical study. We are on track for phase 1 PK data in mid-2026. As we have previously shared, BP1.15205 has demonstrated compelling preclinical potency, selectivity, safety, and efficacy, positioning it as a potential best-in-class orexin 2 receptor agonist. Moving on to our epilepsy franchise, EPX-100 continues to advance in two global phase 3 registrational programs. Enrollment is ongoing in both the Dravet syndrome and the Lennox-Gastaut syndrome programs, that is the ORCHESTRA and the LIGHTHOUSE, respectively.

Speaker #3: Our current efforts are focused on formulation optimization and new modes of delivery and towards a Phase 1 PK study. Beyond Pitollisin, our orexin-2 receptor agonist BP 1.5205 is enrolling in our Phase 1 clinical study.

Speaker #3: We are on track for Phase 1 PK data in mid-2026. As we have previously shared, BP 1.5205 has demonstrated compelling preclinical potency, selectivity, safety, and efficacy positioning it as a potential best-in-class orexin-2 receptor agonist.

Speaker #3: Moving on to our epilepsy franchise, EPX-100 continues to advance in two global Phase 3 registrational programs: enrollment is ongoing in both the Drouet syndrome and the Lennox-Gastaut syndrome programs.

Speaker #3: That is the orex study and the Lighthouse study respectively. The top-line data is expected in the first half of 2027 and PDUFA in 2028.

Kumar Budur: The top-line data is expected in first half of 2027 and PDUFA in 2028. We recently presented the data from the open-label extension part of the Phase 3 study in Dravet syndrome at the AAS meeting in December 2025, which supported a differentiated product profile for EPX-100. The effectiveness data in patients who had at least 6 months of exposure to EPX-100 showed clinically meaningful reduction in seizures, approximately 50% median reduction in seizures as measured by CMS-28. In addition, we saw at least 50% reduction in seizures in half of the patients. EPX-100 was found to be generally well-tolerated, with no additional laboratory or special monitoring requirements, with some participants exposed to EPX-100 for more than 2 years and approaching 3 years.

Speaker #3: We recently presented the data from the open-label extension part of the Phase 3 study in Drouet syndrome at the AAS meeting in December 2025, which supported a differentiated product profile for EPX-100.

Speaker #3: The effectiveness data in patients who had at least six months of exposure to EPX-100 showed clinically meaningful reduction in seizures. Approximately 50% median reduction in seizures as measured by CMS-28.

Speaker #3: In addition, we saw at least 50% reduction in seizures in half of the patients. EPX-100 was found to be generally well tolerated with no additional laboratory or special monitoring requirements with some participants exposed to EPX-100 for more than two years and approaching three years.

Speaker #3: Finally, on behalf of Harmony, I would like to thank all the patients and their families who are participating in our clinical trials, as well as the clinical investigators and site personnel for their efforts and commitment in helping us to advance our development programs.

Kumar Budur: Finally, on behalf of Harmony, I would like to thank all the patients and their families who are participating in our clinical trials, as well as the clinical investigators and site personnel for their efforts and commitment in helping us to advance our development programs. I will now turn the call over to our CFO, Sandip Kapadia, for an update on our financial performance. Sandip?

Speaker #3: I'll now turn the call over to our CFO, Sandeep Kapadia, for an update on our financial performance. Sandeep?

Speaker #1: Thank you, Kumar, and good morning, everyone. This morning, we issued our fourth-quarter earnings release and filed our 10-K where you'll find the details of our fourth-quarter and full-year 2025 financial and operating results.

Sandip Kapadia: Thank you, Kumar. Good morning, everyone. This morning, we issued our Q4 earnings release and filed our 10-K, where you'll find the details of our Q4 and full year 2025 financial and operating results. Our financial performance is also shown on slides 15 through 17. We finished the year with great momentum across the business, delivering strong growth across several of our key metrics, positioning us well as we head into 2026. We delivered another year of double-digit top-line growth, as we reported net revenues above the top end of our previous guidance range. We continue to be a profitable, cash-generating company, funding the growth and advancement of our pipeline fully with the strength of our balance sheet.

Speaker #1: Our financial performance is also shown on slides 15 through 17. We finished the year with great momentum across the business delivering strong growth across several of our key metrics positioning us well as we head into 2026.

Speaker #1: We delivered another year of double-digit top-line growth as we reported net revenues above the top end of our previous guidance range. We continue to be a profitable cash-generating company funding the growth and advancement of our pipeline fully with the strength of our balance sheet.

Speaker #1: Our strong financial performance combined with a solid balance sheet including approximately $882.5 million in cash, cash equivalents, and investments positions us well as we continue to invest in the advancement of our robust late-stage pipeline and look for additional value-enhancing opportunities to further build out our pipeline and add to our commercial portfolio.

Sandip Kapadia: Our strong financial performance, combined with a solid balance sheet, including approximately $882.5 million in cash equivalents, and investments, positions us well as we continue to invest in the advancement of our robust late-stage pipeline and look for additional value-enhancing opportunities to further build out our pipeline and add to our commercial portfolio. We reported net revenues of $243.8 million for Q4 2025, compared to $201.3 million in the prior year quarter, representing a growth of 21% and also our highest quarterly revenues to date. Performance in the quarter reflects the sustained strong underlying demand for Wakix. We also reported total operating expenses for Q4 of $136.7 million, compared to $91.1 million for the same quarter in 2024.

Speaker #1: We reported net revenues of $243.8 million for the fourth quarter of 2025, compared to $201.3 million in the prior quarter, representing a growth of 21% and also our highest quarterly revenues to date.

Speaker #1: Performance in the quarter reflects the sustained strong underlying demand for WCAGs. We also reported total operating expenses for the fourth quarter of $136.7 million, compared to $91.1 million for the same quarter in 2024.

Speaker #1: The growth in expenses was related to investments in our R&D to advance our late-stage pipeline investments in the commercialization of WCAGs and narcolepsy as well as and/or litigation and settlement expenses during the fourth quarter of 2025.

Sandip Kapadia: The growth in expenses was related to investments in our R&D to advance our late-stage pipeline, investments in the commercialization of Wakix and narcolepsy, as well as ANDA litigation and settlement expenses during Q4 2025. Non-GAAP adjusted net income for Q4 2025 was $33.4 million, or $0.57 per diluted share, compared to $64.2 million, or $1.10 per diluted share in the prior quarter. We believe non-GAAP adjusted net income better reflects the underlying business performance. Please see our press release for a reconciliation of GAAP to non-GAAP results. We ended Q4 with $882.5 million in cash equivalents and investments.

Speaker #1: Non-GAAP-adjusted net income for the fourth quarter of 2025 was $33.4 million or 57 cents per diluted share compared to $64.2 million or $1.10 per diluted share in the prior quarter.

Speaker #1: We believe non-GAAP-adjusted net income better reflects the underlying business performance please see our press release for a reconciliation of GAAP to non-GAAP results. We ended the fourth quarter with $882.5 million in cash, cash equivalents, and investments.

Sandip Kapadia: The balance reflects robust cash generation of $348.2 million from operations in 2025, providing us with the financial flexibility to execute on our growth strategy. Looking ahead to our expectations for 2026. As previously disclosed, we are reiterating our guidance for Wakix net revenue of $1 to 1.04 billion. We believe this guidance reflects our strong expectations for 2026 and demonstrates that we are on track to achieving blockbuster potential for Wakix in narcolepsy alone. If you think about phasing of revenues for Q1 2026, we expect to see the typical seasonal dynamics that the industry as a whole experiences each year in Q1. This includes higher gross to net deductions due to insurance plans reset and higher co-pay obligations, along with potential for drawdown in trade inventory.

Speaker #1: The balance reflects robust cash generation of $348.2 million from operations in 2025, providing us with the financial flexibility to execute on our growth strategy.

Speaker #1: Looking ahead to our expectations for 2026, as previously disclosed, we are reiterating our guidance for WCAGs net revenue of $1.00 to $1.04 billion. We believe this guidance reflects our strong expectations for 2026 and demonstrates that we are on track to achieving blockbuster potential for WCAGs and narcolepsy alone.

Speaker #1: As you think about phasing of revenues for the first quarter of 2026, we expect to see the typical seasonal dynamics that the industry as a whole experiences each year in Q1.

Speaker #1: This includes higher gross-to-net deductions due to insurance plan resets and higher copay obligations, along with the potential for drawdown in trade inventories. With respect to expenses, we expect significant increases in investments in R&D as we advance our pipeline, with five ongoing registrational Phase 3 programs, along with plans for a sixth Phase 3 study anticipated to start later this year.

Sandip Kapadia: With respect to expenses, we expect significant increases in investments in R&D as we advance our pipeline with 5 ongoing registrational Phase 3 programs, along with plans for a 6th Phase 3 study anticipated to start later this year. Business development is a high priority, and our intention is to deploy capital to expand our pipeline and commercial portfolio. In summary, I'm pleased with our strong financial performance in 2025. We've once again delivered a year with strong top line growth, maintained healthy operating margins, while continuing to generate significant cash. This positions us well as we enter 2026 with a potential for significant value generation. With that, I'd like to turn the call back over to Jeff for his closing remarks. Jeff?

Speaker #1: Finally, business development is a high priority and our intention is to deploy capital to expand our pipeline and commercial portfolio. In summary, I'm pleased with our strong financial performance in 2025.

Speaker #1: We've once again delivered a year with strong top-line growth, maintained healthy operating margins while continuing to generate significant cash. This positions us well as we enter 2026 with the potential for significant value credit generation.

Speaker #1: And with that, I'd like to turn the call back over to Jeff for his closing remarks. Jeff?

Speaker #2: Thank you, Sandeep. In closing, I'm incredibly proud of what the Harmony team accomplished in 2025, but that is behind us and we are now focused on 2026 and excited for what is ahead.

Jeffrey M. Dayno: Thank you, Sandip. In closing, I'm incredibly proud of what the Harmony team accomplished in 2025. That is behind us, and we are now focused on 2026 and excited for what is ahead. Growth of the Wakix franchise, guiding Wakix to blockbuster status in 2026, extending the Wakix franchise with Pitolisant GR's target PDUFA date in Q1 2027, expanding the Pitolisant franchise with the advancement of the phase 3 trials with Pitolisant HD in unique orphan rare CNS indications, a new opportunity to explore broader CNS indications with newly licensed IP and a new formulation of Pitolisant, and advancing our robust late-stage pipeline with five ongoing phase 3 registrational trials toward five distinct CNS indications. It is because of these achievements that we continue to operate from a position of strength and drive significant momentum.

Speaker #2: Growth of the WCAGs franchise guiding WCAGs to blockbuster status in 2026, extending the WCAGs franchise with Petollison GR's target PDUFA date in Q1 2027, expanding the Petollison franchise with the advancement of the Phase 3 trials with Petollison HD in unique orphan rare CNS indications, and new opportunity to explore broader CNS indications with newly licensed IP and a new formulation of Petollison, and advancing our robust late-stage pipeline with five ongoing Phase 3 registrational trials toward five distinct CNS indications.

Speaker #2: It is because of these achievements that we continue to operate from a position of strength and drive significant momentum. This momentum reinforces our confidence that we have built something rare in this industry.

Jeffrey M. Dayno: This momentum reinforces our confidence that we have built something rare in this industry, a profitable, self-funding biotech company with a strong balance sheet, blockbuster commercial product, a pipeline positioned to deliver significant long-term value, and the capacity, experience, and commitment to generate even greater value through the pursuit of smart business development opportunities. Thank you. I will now turn the call back over to the operator for Q&A. Operator?

Speaker #2: A profitable, self-funding biotech company with a strong balance sheet, blockbuster commercial product, a pipeline positioned to deliver significant long-term value, and the capacity, experience, and commitment to generate even greater value through the pursuit of smart business development opportunities.

Speaker #2: Thank you. And I will now turn the call back over to the operator for Q&A. Operator?

Speaker #3: Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star 2.

Operator: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star two. We remind you to please pick up your handset and please limit yourself to one question and one follow-up question. We'll take our first question from Pete Stavropoulos with Cantor Fitzgerald. Your line is now open. Please go ahead.

Speaker #3: We remind you to please pick up your handset and to please limit yourself to one question and one follow-up question. We'll take our first question from Pete Stavropoulos with Cantor Fitzgerald.

Speaker #3: Your line is now open. Please go ahead.

Pete Stavropoulos: Hi, thank you for taking the question. Actually, I'm going to go to one of your earlier stage assets, EPX-100 for Dravet, and the clinical data disclosed at AES in December. Can you just comment on the baseline seizure rates and the baseline anti-seizure med use? You know, how do they sort of compare to the real-world patients, and how do you compare to patients in other Dravet clinical trials? With the interim OLE efficacy and safety data in hand for those that have at least six months of exposure, what's your view on the emerging benefit risk profile? How competitive do you believe the emerging profile is, and where do you see it fitting into the current landscape?

Speaker #4: Hi. Thank you for taking the question. Actually, I'm going to go to one of your earlier stage assets, EPX 100 for Gervais. And the clinical data disclosed that AES in December.

Speaker #4: He just commented on the baseline seizure rates and the baseline anti-seizure med use. How do they sort of compare to the real-world patients? And how do you compare to patients in other Gervais clinical trials?

Speaker #4: And with the interim OLE efficacy and safety data in hand for those that have at least six months of exposure, what’s your view on the emerging benefit-risk profile?

Speaker #4: How competitive do you believe the emerging profile is? And where do you see it fitting into the current landscape?

Speaker #2: Good morning, Pete. Thanks for your question. I'll turn it over to Kumar to respond.

Jeffrey M. Dayno: Good morning, Pete. Thanks for your question. I'll turn it over to Kumar to respond.

Speaker #5: Hey, good morning, Pete. Thank you for the question. These patients who participated in our Drouet syndrome study had treatment-resistant seizures. They were on average, approximately about four anti-seizure medicines.

Kumar Budur: Hey, good morning, Pete. Thank you for the question. These patients who participated in our Dravet syndrome study had treatment-resistant seizures. They were, on average, approximately about four anti-seizure medicines, and their baseline seizures, I don't remember the exact number, what the baseline seizure was, but I can provide that information. That was comparable to what we have seen in other studies as well. In terms of the value proposition, Pete, I mentioned on the call the efficacy that we saw in this study. The effectiveness data showed that we had at least about approximately 50% median reduction in seizures, and we also saw 50% reduction in seizures in about 50% of these patients. What's important is to see this alongside the safety and tolerability profile.

Speaker #5: And their baseline seizures, I don't remember the exact number, what the baseline seizure was, but I can provide that information. But that was comparable to what we have seen in other studies as well.

Speaker #5: In terms of the value proposition, Pete, I mentioned on the call, the efficacy that we saw in this study, the effectiveness data showed that we had at least about approximately 50% median reduction in seizures.

Speaker #5: And we also saw a 50% reduction in seizures in about 50% of these patients. What's important is to see this alongside the safety and tolerability profile.

Speaker #5: We did not see significant nausea, vomiting, abdominal pain, diarrhea, that is commonly seen with other medicines, including suppression of appetite. In fact, the only GI AE of note was diarrhea, which was seen in about 2% of the patients.

Kumar Budur: We did not see significant nausea, vomiting, abdominal pain, diarrhea, that is commonly seen with other medicines, including suppression of appetite. In fact, the only GI AE of note was about diarrhea, which was seen in about 2% of the patients. Liver function tests also remained normal, which is an issue with some of the approved drugs. EPX-100 doesn't require any special monitoring. Also, the ease of use is also very important here. A liquid formulation, BID dosing regimen is much more better suited in this patient population for patients and caregivers, compared to some of the other drugs that are in development, which have a TID dosing regimen. Thank you, Pete.

Speaker #5: Liver function tests also remained normal. Which is an issue with some of the approved drugs. And EPX 100 doesn't require any special monitoring. And also, the ease of use is also very important here.

Speaker #5: Liquid formulation, PID dosing regimen is much more better suited in this patient population for patients and caregivers compared to some of the other drugs that are in development, which have a TID dosing regimen.

Speaker #5: Thank you, Pete.

Speaker #2: Thanks, Kumar.

Jeffrey M. Dayno: Thanks, Kumar.

Speaker #4: And one follow-up, if okay. A question on the orexin 2.

Pete Stavropoulos: If I, one follow-up, if okay. A question on the orexin-2.

Speaker #5: Go ahead, Pete.

Kumar Budur: Go ahead, Pete.

Speaker #4: Can you hear me?

Pete Stavropoulos: Can you hear me?

Speaker #5: Yes.

Kumar Budur: Yes.

Speaker #4: Yes. So for the orexin 2 receptor agonist, you're going to have data mid-yearish. What's the PKPD and safety bar that you look for in the Phase 1 to move this program into a later stage studies?

Pete Stavropoulos: Yeah. For the orexin-2 receptor agonist, you know, you're going to have data midyear-ish. What's the PK, PD and safety bar that you look for in the phase 1 to move this program into a later stages, later stage studies? Where do you sort of see your orexin-2 receptor agonist fitting into the emerging landscape?

Speaker #4: And what do you sort of see your orexin 2 receptor agonist fitting into the emerging landscape?

Speaker #5: Yeah. We are dosing the sorry, we are dosing subjects right now in our Phase 1 PK study. By mid-2026, we will see clinical PK data safety and tolerability data.

Kumar Budur: Yeah. We are dosing subjects right now in our Phase 1 PK study. By mid-2026, we will see clinical PK data, safety and tolerability data. We don't anticipate to see anything different than what is already seen with other orexin receptor agonists in this class. We are making progress on advancing this to the next stage of development, which is a sleep-deprived healthy volunteer study we plan to commence in the second half of this year. In terms of how it fits with the competitive landscape, look, Takeda is ahead. They have submitted an NDA, and the others are in Phase 1 and Phase 2 studies.

Speaker #5: We don't anticipate to see anything different than what is already seen with other orexin receptor agonists in this class. And we are making progress on advancing this to the next stage of development, which is sleep-deprived healthy volunteer study, which we plan to commence in the second half of this year.

Speaker #5: And in terms of how it fits with the competitive landscape, look, Takeda is ahead. They have submitted an NDA, and the others are in Phase 1 and Phase 2 studies.

Speaker #5: And our goal is to really accelerate the clinical development by leveraging some of the learnings that we have from other development programs that are ahead of us, without compromising the quality of data.

Kumar Budur: Our goal is to really accelerate the clinical development by leveraging some of the learnings that we have from other development programs that are ahead of us without compromising the quality of data.

Speaker #4: All right. Thank you. And thank you for taking my questions and congrats on the quarter.

Pete Stavropoulos: All right, thank you, and thank you for taking my questions, and congrats on the quarter.

Speaker #5: Thank you, Pete.

Kumar Budur: Thank you, Pete.

Speaker #2: Thanks, Pete.

Jeffrey M. Dayno: Thanks, Pete.

Speaker #3: Thank you. And we'll move next to David Amsalem with Piper Sandler. Your line is now open.

Operator: Thank you. We'll move next to David Amsellem with Piper Sandler. Your line is now open.

Speaker #6: Thanks, two for me. One on the orexin. Just wanted to clarify, are we going to get multiple ascending dose data in the second half in sleep-deprived healthies?

David Amsellem: Thanks. Two for me. One on the orexin, just wanted to clarify: Are we going to get multiple ascending dose data, in the second half in sleep-deprived, healthies? How are you thinking about indications here, given that you have a number of companies that are looking at narcolepsy, NIH? Are you thinking beyond narcolepsy NIH, or, is that going to be your core focus for the orexin program? That's number one.

Speaker #6: And how are you thinking about indications here, given that you have a number of companies that are looking at narcolepsy and IH? Are you thinking beyond narcolepsy and IH, or is that going to be your core focus for the orexin program?

Speaker #6: That's number one. And then number two, sort of a hypothetical here, but to the extent that with the patent case, if you were to not prevail, and there was an earlier-than-expected loss of excessivity, how do you think about cash conservation and ultimately trying to bridge from the LOE to your next set of development stage assets and commercialization of them?

David Amsellem: Number 2 is sort of a hypothetical here, but just to the extent that with the patent case, if you were to not prevail, and there was an earlier than expected loss of exclusivity, how do you think about cash conservation, and ultimately, trying to bridge from the LOE to your next set of development stage assets and commercialization of them? Thanks.

Speaker #6: Thanks.

Speaker #2: Yeah. Good morning, David. Thanks for your questions. With regards to the orexin 2 agonist, just a comment. In terms of target indications, I think we are contemplating broadly in addition to the primary targets in terms of our overall orexin 2 program.

Jeffrey M. Dayno: Yeah. Good morning, David. Thanks for your questions. With regards to the orexin-2 agonist, just to comment. In terms of, you know, target indications, I think, you know, we are, we're contemplating broadly, you know, in addition to the primary targets, you know, in terms of our overall orexin-2 program, you know, other opportunities beyond, you know, primary disorders of hypersomnolence. I think, you know, that is part of an overall development strategy. With regards to the emerging data, first, I just want to clarify, in terms of the PK profile, you know, the in healthy volunteers, single dose study, you know, we are looking to confirm the expected profile of, you know, once-daily dosing with regards to the initial data that we'll read out. Kumar, multiple ascending dose on sleep-deprived healthy volunteers?

Speaker #2: Other opportunities beyond primary disorders of hypersomnolence. So I think that is part of an overall development strategy. With regards to the emerging data, first, I just want to clarify, in terms of the PK profile in healthy volunteers, single-dose study, we are looking to confirm the expected profile of once-daily dosing.

Speaker #2: With regards to the initial data that we'll read out. And Kumar, multiple ascending dose on sleep-deprived healthy volunteers?

Speaker #5: Yeah. The single the multiple ascending dose study, David, will follow the single ascending dose study. And in parallel, we plan to conduct a sleep-deprived healthy volunteer study.

Kumar Budur: The multiple ascending dose study, David, will follow the single ascending dose study. In parallel, we plan to conduct a sleep-deprived healthy volunteer study. In terms of the indications, as Jeff was mentioning, we are keeping an open eye and looking at everything, not just central disorders of hypersomnolence, but other potential neuropsychiatric disorders, including, several aspects of cognition, mood, and other things.... we will pursue single ascending, multiple ascending dose study because that's something that we need to do regardless. Then we will evaluate the competitive landscape and decide which way to go.

Speaker #5: In terms of the indications as Jeff was mentioning, we are keeping an open eye and looking at everything, not just central disorders of hypersomnolence, but other potential neuropsychiatric disorders, including several aspects of cognition, mood, and other things.

Speaker #5: We will pursue single ascending, multiple ascending dose study because that's something that we need to do regardless. And then we will evaluate the competitive landscape and decide which way to go.

Speaker #2: And David, with regards to your second question, with regards to the ongoing litigation, I think as you're aware, I think it's premature. I'm not going to speculate on the future outcome of the trial.

Jeffrey M. Dayno: David, with regard to your second question, you know, with regard to the ongoing litigation, I know, I think as you're aware, I think it's, you know, premature, and I'm not going to speculate on the future outcome of the trial. You know, I point you to the recent progress that we made, you know, in settling with three of the generic filers. That, you know, currently, it brings the total number of settlements to six of the seven ANDA filers. We feel good about how that positions us going forward. Based on, you know, these settlements, you know, generic entry stands at March 2030 if we're granted pediatric exclusivity, which we're on track to obtain. With regards to our cash position and how we stand, Sandip?

Speaker #2: But I point you to the recent progress that we made in settling with three of the generic filers. So that currently, it brings the total number of settlements to six of the seven ANDA filers.

Speaker #2: We feel good about how that positions us going forward. Based on these settlements, generic entry stands at March of 2030. If we're granted pediatric exclusivity, which we're on track to obtain.

Speaker #2: With regards to our cash position and how we stand on Sunday.

Sandip Kapadia: Yeah, look, I think we're in a very strong cash position. You saw, you know, we generated close to, you know, around $48 million cash last year, where we have $880 million of cash on the balance sheet. I think we're really well positioned to continue to drive innovation, continue to build our pipeline, and be able to fund many of all the programs that we spoke about today, generally. We continue to have a solid position as a company.

Speaker #7: Yeah. Look, I think we're in a very strong cash position. You saw we generated close to 348 million dollars cash last year. We're we have 880 million of cash on the balance sheet.

Speaker #7: So I think we're really well positioned to continue to drive innovation, drive continuing to build our pipeline. And be able to fund all the programs that we spoke about today.

Speaker #7: Generally. And we continue to have a solid position as a

Speaker #3: And thank you. We'll move next to Jay Olson with Oppenheimer. Your line is now open.

Operator: Thank you. We'll move next to Jay Olson with Oppenheimer. Your line is now open.

Jay Olson: Oh, hey, congrats on the progress. Thank you for taking the questions. Can you talk about any gating factors to filing the Pitolisant GR NDA next quarter? Separately, can you just talk about the pace of enrollment in your phase 3 narcolepsy and IH studies for Pitolisant HD, considering you've got some competitors also enrolling their studies? Thank you.

Speaker #8: Oh, hey. Congrats on the progress. And thank you for taking the questions. Can you talk about any gating factors to filing that Patola sent GR NDA next quarter?

Speaker #8: And then separately, can you just talk about the pace of enrollment in your Phase 3 narcolepsy and IH studies for pitolisant HD, considering you've got some competitors also enrolling their studies?

Speaker #8: Thank you.

Speaker #2: Good morning, Jay. Thanks for your question. We're excited about Patola sent GR. It's sort of right around the corner in terms of NDA submission.

Jeffrey M. Dayno: Good morning, Jay. Thanks for your question. We're excited about Pitolisant GR. You know, it's sort of right around the corner in terms of NDA submission. Kumar, any gating items to that, or how are things looking?

Speaker #2: Kumar, any gating items to that, or how are things looking?

Kumar Budur: Yeah, things are looking good. Good morning, Jay. We are on track to submit the Pitolisant GR NDA in Q2 of this year. As always, the final things that are needed for NDA submission, that's what we are working on, and we are on target for PDUFA in Q1 of 2027. In terms of your question regarding the enrollment for Pitolisant HD in narcolepsy and idiopathic hypersomnia studies, you're absolutely right, Jay. There is competition for patients. We are very much aware of it, but we also have been in this field for a long time. We know the sites, we know the investigators. We have conducted studies in this patient population, so we are confident with our current timeline, which is top line in 2027 and PDUFA in 2028.

Speaker #5: Yeah. Things are looking good. Good morning, Jay. We are on track to submit the Patola sent GR NDA in second quarter of this year.

Speaker #5: As always, the final things that are needed for NDA submission, that's what we are working on. And we are on target for PDUFA in Q1 of 2027.

Speaker #5: In terms of your question regarding the enrollment for Patola sent HD in narcolepsy and idiopathic hypersomnia studies, you're absolutely right, Jay. There is a competition for patients.

Speaker #5: We are very much aware of it. But we also have been in this field for a long time. We know the sites. We know the investigators.

Speaker #5: We have conducted studies in this patient population, so we are confident with our current timeline, which is top-line in 2027 and PDUFA in 2028.

Jay Olson: Yeah. Thanks, Kumar.

Speaker #2: Yeah. Thanks, Kumar. And with regards to yeah. Sure. With regards to Patola sent GR, I just want to add to comment on how he sees the opportunity and how the commercial team is preparing for that.

Jeffrey M. Dayno: Yeah, sure. With regards to Pitolisant GR, I just want Adam to, you know, comment on how he sees the opportunity and how the commercial team is preparing for that.

Speaker #5: Great. Thanks, Jeff. Preparation is definitely underway. Looking for PDUFA in 1Q27. That'll have us launching several years before LOE with an opportunity to extend the wake-ex franchise.

Adam Zeske: Great. Thanks, Jeff. Preparation is definitely underway, looking for PDUFA in Q1 2027. That'll have us launching several years before LOE, with an opportunity to extend the Wakix franchise. This is a fast-to-market line extension strategy that provides a GR coating to pitolisant and allows patients to start right at a therapeutic dose. Another layer of additional protection for a product that's already perceived as highly well-tolerated, and the addition of starting at a therapeutic dose, which has hopefully the benefit of securing faster patient outcomes. The strategy here is really focused on new patients that would have been prescribed Wakix, as well as previous patients, that we have the ability to recontact because we secure consent right up front anytime there's a patient referred for Wakix therapy.

Speaker #5: This is a faster market, line extension strategy, that provides a GR coding to Patola sent and allows patients to start right at the therapeutic dose.

Speaker #5: So another layer of a additional protection for a product that's already perceived as highly well tolerated. And the addition of starting at a therapeutic dose, which has hopefully the benefit of securing faster patient outcomes.

Speaker #5: The strategy here is really focused on new patients that would have been prescribed wake-ex, as well as previous patients that we have the ability to recontact because we secure consent right up front anytime there's a patient referred for wake-ex therapy.

Speaker #5: Both of those are tremendous opportunities. And we look forward to executing on that launch beginning in 1Q27 next year.

Adam Zeske: Both of those are tremendous opportunities. We look forward to executing on that launch beginning in Q1 2027 next year.

Speaker #2: Thank you, Adam.

Jeffrey M. Dayno: Thank you, Adam.

Speaker #3: Thank you. We'll take our next question from Greg Suvanaveha with Mizuho. Your line is now open.

Operator: Thank you. We'll take our next question from Graig Suvannavejh with Mizuho. Your line is now open.

[Analyst] (Mizuho): Hi, everyone. This is Ryan on for Greg today. A couple of quick questions for me. I'm wondering if you could comment on the increase in SG&A that we saw in the Q4, the dynamics behind that, any updates that you might have on EPX-200, when we might hear more about that program. Thank you.

Speaker #9: Hi, everyone. This is Ryan on for Greg today. A couple of quick questions for me. I'm wondering if you could comment on the increase in SGNA that we saw in the fourth quarter, the dynamics behind that, and then any updates that you might have on EPX 200 and when we might hear more about that program.

Speaker #9: Thank you.

Speaker #2: Okay. Sandip?

Jeffrey M. Dayno: Okay, Sundy?

Speaker #7: Yeah. Just regarding the expenses in the fourth quarter, I mean, as I mentioned on the call, I mean, we did see an increase in expenses.

Sandip Kapadia: Yeah, just regarding the expenses in the Q4, as I mentioned on the call, we did see an increase in expenses, largely driven by the R&D investments as we start up our Phase 3s for both IH and narcolepsy in the HD program. You know, continued costs in terms of investments for Wakix in narcolepsy commercialization there. I also mentioned that we did have handle litigation and settlement expenses in the Q4, so that the team could be prepared for the trial, which happened a few days ago as well. Again, those are the key drivers for our expenses.

Speaker #7: Largely driven by the R&D investments as we start up our Phase 3s for both IH and narcolepsy in the HD program. Continued costs in terms of investments for wake-ex in narcolepsy commercialization there.

Speaker #7: And then I also mentioned that we did have annual litigation and settlement expenses in the fourth quarter. So that the team could be prepared for the trial, which happened a few days ago as well.

Speaker #7: So again, those are the key drivers for our expenses. And as I mentioned, going forward, I think the key thing to note in terms of expenses is, as we'll have five registrational studies ongoing this year, and potentially six ones planned for later this year, we will see some increases also in the R&D expenses as we go into 2026.

Sandip Kapadia: As I mentioned, going forward, I think the key thing to note in terms of expenses is, as we'll have five registrational studies ongoing this year and potentially a six-month plan for later this year, we will see some increases also in the R&D expenses as we go into 2027.

Speaker #2: Thanks, Sandip. Kumar?

Jeffrey M. Dayno: Thanks, Sandip. Kumar?

Kumar Budur: Hey, Ryan. Good morning. Regarding liquid lorcaserin, which is EPX-200, we are doing some pre-IND related work right now. Ryan, as you know, lorcaserin is more selective for 5-HT2C, and this drug probably has one of the largest safety and tolerability database out there, including a long-term cardiovascular outcome study. There is a lot of efficacy data in several DEs with this compound. Our goal is to leverage all of the data that is already available and pursue an accelerated development program and hopefully bring a new medication to patients with Developmental and Epileptic Encephalopathies.

Speaker #8: Hey, Ryan. Good morning. Regarding liquid locasterin, which is EPX 200, we are doing some pre-IND related work right now. Ryan as you know, locasterin is more selective for 5ST2C and this drug probably has one of the largest safety and tolerability databases out there including a long-term cardiovascular outcome study.

Speaker #8: And also, there is a lot of efficacy data in several DEs with this compound. Our goal is to leverage all of the data that is already available and pursue an accelerated development program, and hopefully bring a new medication to patients with development and epileptic encephalopathies.

Speaker #2: Thanks, Kumar.

Jeffrey M. Dayno: Thanks, Kumar.

Speaker #3: Thank you. And we'll go next to Danielle Brill with Truist Securities. Your line is now open.

Operator: Thank you. We'll go next to Danielle Brill with Truist Securities. Your line is now open.

Speaker #10: Hey, guys. This is Alexander, Danielle. Thanks for the question. Two little detail questions. One follow-up on Jay's question on OnSTRIDE 1 and 2. Have those begun enrolling patients just we haven't seen any indication in clin-trials.gov?

[Analyst] (Truist Securities): Hey, guys. This is Alex under Danielle. Thanks for the question. Two little detailed questions.

Jeffrey M. Dayno: Yeah.

[Analyst] (Truist Securities): One follow-up on Jay's question on ONSTRIDE 1 and 2. Have those begun enrolling patients? Just we haven't seen any indication in ClinicalTrials.gov. On the OpEx expenditure, you mentioned the impact of some of the settlements and litigation. Was that primarily in the General and Administrative line item? Just kind of curious how that run rate we should expect moving forward. Thanks so much.

Speaker #10: And then on the OPEX expenditure, you mentioned the impact of some of the settlements and litigation. Was that primarily in the general administrative line item, just kind of curious how that run rate we should expect moving forward?

Speaker #10: Thanks so much.

Jeffrey M. Dayno: Kumar?

Speaker #2: Kumar?

Kumar Budur: Good morning, Alex. ONSTRIDE 1 and 2 studies, as we had mentioned in the past, we started initiating sites towards the end of last year. It will be posted on ClinicalTrials.gov, typically within 21 to 30 days after the first subject is enrolled. We are at different stages of site initiation, site activation. Sites are getting prepared to enroll the patients.

Speaker #8: Good morning, Alex. OnSTRIDE 1 and 2 studies, as we had mentioned in the past, we started initiating sites towards the end of last year.

Speaker #8: And it will be posted on clinicaltrials.gov typically within 21 to 30 days after the first subject is enrolled. We are at different stages of site initiation, site activation; sites are getting prepared to enroll the patients.

Speaker #7: Yeah. And regarding the expenses, yeah, most of them, they were all under GNA in terms of the annual litigation and settlement expenses. Some of it tends to be one-time expenses.

Jeffrey M. Dayno: Regarding the expenses, most of them, they were all under G&A in terms of the end of litigation and settlement expenses. Some of it tends to be one-time expenses, and some will continue as we continue with the litigation process.

Speaker #7: And some will continue as we continue with the litigation processes.

Speaker #10: Great. Thanks so much.

[Analyst] (Truist Securities): Great. Thanks so much.

Speaker #2: Thanks, Alex.

Jeffrey M. Dayno: Thanks, Alex.

Speaker #3: And thank you. We'll move next to Corinne Johnson with Goldman Sachs. Your line is now open.

Operator: Thank you. We'll move next to Corinne Johnson with Goldman Sachs. Your line is now open.

Corinne Johnson: Thanks. Good morning. Maybe I know you can't speak too much about the details of ongoing litigation, but you could help us understand kind of the timeline for decisions that are expected next, what process you kind of could anticipate for appeal for a situation like this, and also kind of remind us the regulatory exclusivity timelines that you have. I know you talked about the litigation or the settlements you have, kind of with 6 of 7 of these other generic manufacturers, but can you clarify what the impact this litigation might have on potentially, like, acceleration clauses and those settlements? I think those are pretty standard, but not sure if they're included here. Thanks.

Speaker #11: Thanks. Good morning. Maybe I know you can't speak too much about the details of ongoing litigation, but you could help us understand kind of the timeline for decisions that are expected next.

Speaker #11: What process do you kind of put in anticipate for appeal for a situation like this? And also kind of remind us the regulatory exclusivity timelines that you have.

Speaker #11: And then I know you've talked about the litigation or the settlements you have kind of with six of seven of these other generic manufacturers.

Speaker #11: But can you clarify what impact this litigation might have on potential acceleration clauses in those settlements? I think those are pretty standard, but I'm not sure if they're included here.

Speaker #11: Thanks.

Speaker #2: Yeah, Corinne, thanks for your question. So with regards to the timing of the judge issuing a rule, it's really hard to know. And can't really speculate.

Jeffrey M. Dayno: Yeah, Corinne, thanks for your question. With regards to, you know, the timing of the judge issuing a ruling. You know, it's really hard to know and can't really speculate. You know, this is an ongoing legal process, and it's hard to know, you know, when that will complete and, you know, come to final decision. As a reminder, you know, there is in the meantime, there is a stay, you know, that's in place that extends to February 2027. Based on the outcome of the trial, obviously an appeals process is available to both sides. I think we know that the litigation process as well as the appeals process, you know, takes time.

Speaker #2: This is an ongoing legal process. And it's hard to know when that will complete and come to final decision. As a reminder, there is in the meantime, there is a stay that's in place that extends to February of 2027.

Speaker #2: And then based on the outcome of the trial, obviously, an appeals process is available to both sides. I think we know that the litigation process as well as the appeals process takes time.

Speaker #2: And with that, while this was happening, again, I think pointing back to the progress we've made on the settlements in terms of six of the seven generic filers, being settled, we feel that positions us well going forward with regards to the overall process.

Jeffrey M. Dayno: You know, with that, while this was happening, again, I think pointing back to the progress we've made, you know, on the settlements in terms of 6 of the 7 generic filers being settled, we feel that, you know, positions us well going forward, you know, with regards to the overall process. In the meantime, you know, there are other things going on with regards to, as we just spoke to, you know, Pitolisant GR in extending, you know, the franchise. You know, that's, we remain, you know, with regards to last week's trial, you know, we remain confident in the strength of the IP, and we will continue to vigorously defend it, you know, as the legal process plays out, you know, after the trial.

Speaker #2: In the meantime, there are other things going on with regards to, as we just spoke to, patellus NGR and extending the franchise. And that's we remain with regards to last week's trial, we remain confident in the strength of the IP.

Speaker #2: And we will continue to vigorously defend it as the legal process plays out after the trial. Kumar, in terms of regulatory exclusivities, so in terms of our regulatory exclusivities of where we are with regards to I mean, ODE with regards to DDS, takes us to March of '26.

Jeffrey M. Dayno: Kumar, in terms of regulatory exclusivities?

Corinne Johnson: mm-hmm.

Jeffrey M. Dayno: In terms of our regulatory exclusivities of, you know, where we are with regards to, I mean, ODE with regards to EDS, you know, takes us to March of 2026, and for cataplexy to October of 2027.

Speaker #2: And for cataplexy to October of '27.

Corinne Johnson: Thank you.

Speaker #11: Thank you.

Jeffrey M. Dayno: Mm-hmm.

Kumar Budur: 25 August.

Jeffrey M. Dayno: 25 August.

Speaker #12: August '26.

Speaker #3: Thank you. And we'll take our next question from Patrick Truchio with HC Wainwright. Please go ahead.

Operator: Thank you. We'll take our next question from Patrick Trucchio with H.C. Wainwright. Please go ahead.

Kumar Budur: Hi, good morning. Just a couple of clarification questions and then a follow-up. First, I think you reiterated 2026 WACEX guidance of $1 billion to $1.04 billion. What level of average patient growth is embedded in that range? How much incremental contribution do you expect from the newly approved pediatric cataplexy indication in 2026?

Patrick Trucchio: Hi, good morning. Just a couple of clarification questions and then a follow-up. First, I think you reiterated 2026 WACEX guidance of $1 billion to $1.04 billion. What level of average patient growth is embedded in that range? How much incremental contribution do you expect from the newly approved pediatric cataplexy indication in 2026?

Speaker #13: Hi. Good morning. Just a couple of clarification questions, and then a follow-up. First, I think you reiterated 2026 waiting guidance of $1 billion to $1.04 billion.

Speaker #13: What level of average patient growth is embedded in that range? And how much incremental contribution do you expect from the newly approved pediatric cataplexy indication in 2026?

Speaker #2: Good morning, Patrick. Thanks for your question. Adam, what response to the patient growth supporting that?

Jeffrey M. Dayno: Good morning, Patrick. Thanks for your question. Adam, what, respond to.

[Analyst] (Truist Securities): Yeah.

Adam Zeske: Yeah.

Jeffrey M. Dayno: the patient supporting that? Mm-hmm.

Jeffrey M. Dayno: the patient supporting that?

[Analyst] (Truist Securities): Yeah, thanks for the question. For 2026 guidance.

Adam Zeske: Yeah, thanks for the question. For 2026 guidance.

Speaker #8: Yeah. Thanks for the question. So for 2026 guidance, exceeding basically a billion or blockbuster status, the underlying patient growth is consistent with what we've seen this year.

Adam Zeske: You know, exceeding basically a billion or blockbuster status. The underlying patient growth is consistent with what we've seen this year. We expect that momentum to continue. We're really excited to see the third consecutive quarter of, you know, more than 400 patient adds in a quarter. We've never seen that before in the brand. We believe that's a strong foundation and momentum carrying us into 2026, and we expect that to continue. You're gonna see the regular and normal seasonality that you're gonna that we've seen over the last several years. You know, Q1 tends to be a little bit slower as the, you know, start of the calendar year with payer resets and what have you. We expect that seasonality to continue.

Speaker #8: So we expect that momentum to continue. We're really excited to see the third consecutive quarter of more than 400 patient ads in a quarter.

Speaker #8: We've never seen that before in the brand. We believe that's a strong foundation and momentum carrying us into '26. And we expect that to continue.

Speaker #8: You're going to see the regular and normal seasonality that you're going to that we've seen over the last several years, Q1 tends to be a little bit slower as the start of the calendar year with payer resets.

Speaker #8: And what have you. So we expect that seasonality to continue. But the underlying sort of average performance, we'd expect to continue the momentum we saw in 2025.

Adam Zeske: The underlying sort of average performance, we'd expect to continue the momentum we saw in 2025. Hopefully, that covers the question.

Speaker #8: Hopefully, that covers the question.

David Brown: Yes, that's helpful. Just as it regards the broader CNS strategy of MS fatigue, I'm wondering, first, can you elaborate on what existing clinical data supports pitolisant's efficacy in fatigue? What is the development timeline to the phase 1 PK study?

Patrick Trucchio: Yes, that's helpful. Just as it regards the broader CNS strategy of MS fatigue, I'm wondering, first, can you elaborate on what existing clinical data supports pitolisant's efficacy in fatigue? What is the development timeline to the phase 1 PK study?

Speaker #13: Yeah. That's helpful. And then just as it regards the broader CNS strategy with MS fatigue, I'm wondering first, can you elaborate on what existing clinical data supports patellus efficacy in fatigue?

Speaker #13: And what the development timelines to a phase one what is the development timeline to the phase one PK study?

Kumar Budur: Hey, good morning, Patrick. Regarding this new formulation, this is something we are very excited about. It's a new formulation with an issued patent until 2042. We have mentioned in the past about our interest to pursue fatigue based on the histaminergic mechanism of action. We have also said that fatigue is not a unidimensional construct, it's a multidimensional construct with physical, somatic, and cognition symptoms. How pitolisant, with its unique mechanism of action, working at tuberomammillary nucleus and the downstream effects on serotonin and norepinephrine, is uniquely positioned to treat fatigue. To your question about clinical data, Patrick, we actually showed the efficacy data in fatigue with pitolisant in our myotonic dystrophy study, where we saw clinically meaningful improvement in symptoms of fatigue, and we also saw dose response.

Speaker #2: Okay. Good morning, Patrick. Regarding this new formulation, this is something we are very excited about. It's a new formulation with an issued patent until 2042.

Speaker #2: We have mentioned in the past about our interest to pursue fatigue based on the histaminergic mechanism of action. We have also said that fatigue is not an unidimensional construct.

Speaker #2: It's a multidimensional construct with physical, somatic, and cognition symptoms. And how patellus N with its unique mechanism of action working at tubero-mamillary nucleus and the downstream effects on serotonin and norepinephrine is uniquely positioned to treat fatigue.

Speaker #2: To your question about clinical data, Patrick, we actually showed the efficacy data in fatigue with patellus N in our myotonic dystrophy study. Where we saw clinically meaningful improvement in symptoms of fatigue.

Speaker #2: And we also saw dose response. Similarly, we also saw clinical efficacy data in fatigue in patients with residual excessive daytime sleepiness with the OSA.

Kumar Budur: Similarly, we also saw clinical efficacy data in fatigue in patients with residual excessive daytime sleepiness with the OSA. Armed with all of these data points, we plan to pursue broader CNS indications where fatigue is a prominent symptom. We have identified fatigue in MS as a lead indication because it's very well characterized, very well known, and about 80% of patients with MS have fatigue, with more than 50% having clinically significant fatigue. In terms of where we are with the development program, right now, the focus is on formulation optimization and looking at potentially other modes of delivery and prepare for a PK study, clinical PK study. That's where we are. Thank you.

Speaker #2: So armed with all of these data points, we plan to pursue broader CNS indications where fatigue is a prominent symptom. And we have identified fatigue in MS as a lead indication because it's very well characterized very well known.

Speaker #2: And about 80% of patients with MS have fatigue with more than 50% having clinically significant fatigue. In terms of where we are with the development program right now, the focus is on formulation optimization and looking at potentially other modes of delivery.

Speaker #2: And prepare for a PK study, clinical PK study. That's where we are. Thank you.

David Brown: Great. Thanks so much.

Patrick Trucchio: Great. Thanks so much.

Speaker #13: Great. Thanks so much.

Speaker #8: And if I could and if I could just jump in, I neglected to answer the second part of your question. Around the pediatric cataplexy opportunities.

Adam Zeske: If I could just jump in, I neglected to answer the second part of your question around the pediatric...

David Brown: Sure.

Patrick Trucchio: Sure.

Adam Zeske: cataplexy opportunity. Just a quick couple of words on that. We're really excited about the approval of pediatric cataplexy. We now have approval for EDS and cataplexy in both adult and pediatric populations. Basically, anyone over 6 years of age. The pediatric patient population represents about 5% of the total narcolepsy population, just to give you an idea around scale of the opportunity. Really, we see this as, look, this is an important addition to the label. It provides greater flexibility for healthcare providers in their ability to treat these patients. It's important new information that we will educate those healthcare providers on. And it, I think, reinforces Wakix as an appropriate treatment for peds, as well as having just broad clinical utility across almost all patients with narcolepsy.

Speaker #8: So just a quick couple of words on that. We're really excited about the approval of pediatric cataplexy. We now have approval for EDS and cataplexy in both adult and pediatric populations.

Speaker #8: Basically, anyone over six years of age. The pediatric patient population represents about 5% of the total narcolepsy population, just to give you an idea around scale of the opportunity.

Speaker #8: But really, we see this as look, this is an important addition to the label. It provides greater flexibility for healthcare providers in their ability to treat these patients.

Speaker #8: It's important new information that we will educate those healthcare providers on. And I think reinforces wait kicks as an appropriate treatment for peds. As well as having just broad clinical utility across almost all patients with narcolepsy.

Speaker #8: So our teams were really well prepared ahead of the approval. As I mentioned, we had a robust promotional and execution strategy ready to go.

Adam Zeske: Our teams were really well prepared ahead of the approval. As I mentioned, we had a robust promotional and execution strategy ready to go, and we began executing on those plans really from the day of approval. Thank you for the question.

Speaker #8: And we began executing on those plans really from the day of approval. Thank you for the question.

David Brown: Terrific. Thank you so much.

Patrick Trucchio: Terrific. Thank you so much.

Speaker #13: Terrific. Thank you so much.

Speaker #3: Thank you. We'll go next to Jason Gerberry with Bank of America. Please go ahead.

Operator: Thank you. We'll go next to Jason Gerberry with Bank of America. Please go ahead.

Gavin Patel: Hey, guys. This is Gavin Patel in for Jason Gerberry. Just a couple questions for us. The first is, I know you guys mentioned expanding the field sales and reimbursement teams in 2026. Maybe if you can just help us understand how much of this investment is dedicated to the core narcolepsy market versus preparing for new launches like Pitolisant GR in the future. Then the second question is with regards to DD. Maybe if you can speak to the DD as a capital allocation priority versus share repurchases or other things, and how you're planning to diversify beyond the pitolisant franchise ahead of an important IP outcome providing clarity on the sole commercial asset. Thank you.

Pavan Patel: Hey, guys. This is Gavin Patel in for Jason Gerberry. Just a couple questions for us. The first is, I know you guys mentioned expanding the field sales and reimbursement teams in 2026. Maybe if you can just help us understand how much of this investment is dedicated to the core narcolepsy market versus preparing for new launches like Pitolisant GR in the future. Then the second question is with regards to DD. Maybe if you can speak to the DD as a capital allocation priority versus share repurchases or other things, and how you're planning to diversify beyond the pitolisant franchise ahead of an important IP outcome providing clarity on the sole commercial asset. Thank you.

Speaker #14: Hey, guys. This is Bhavan Patel on for Jason Gerberry. Just a couple of questions for us. The first is, I know you guys mentioned expanding the field sales and reimbursement teams in 2026.

Speaker #14: So maybe if you can just help us understand how much of this investment is dedicated to the core narcolepsy market versus preparing for a new launches like patellus N GR in the future.

Speaker #14: And then the second question is with regards to BD, maybe if you can speak to the BD as a capital allocation priority versus share repurchases or other things and how you're planning to diversify beyond the patellus N franchise ahead of an important IP outcome providing clarity on the sole commercial asset.

Speaker #14: Thank you.

Speaker #2: Yeah. I didn't catch the first part of the question if you could repeat that.

Jeffrey M. Dayno: Yeah, I didn't catch the first part of the question, if you could repeat that.

Speaker #8: I did. Jeff, I did the first.

Adam Zeske: I did.

Gavin Patel: Yeah.

Pavan Patel: Yeah.

Adam Zeske: Jeff, I did the first-.

Speaker #14: Yeah. Oh, yeah. Go ahead.

Gavin Patel: You know. Oh, yeah. Go ahead.

Pavan Patel: You know. Oh, yeah. Go ahead.

Speaker #2: Okay, Adam. Go ahead.

Jeffrey M. Dayno: Okay, Adam. Go ahead.

Adam Zeske: Yeah, the first part of the question was around the expansion. You know, what does that look like and how much of that is related to core, basically growing Wakix versus preparing for GR. I mean, the short answer on that last piece is 100% of the investment expansion is around continuing to grow Wakix today. You know, our plans for how we will launch GR will take form kind of as we progress through the calendar year this year and approach that PDUFA date in Q1 2027. I'll remind that, you know, we were really pleased with the performance we saw in 2025, really record-setting performance. That was based on continuing to tweak some of the fundamentals around our sales execution, marketing, promotional mix, and messaging, adding some payer wins and supporting patients.

Speaker #8: Yeah. The first part of the question was around the expansion. What does that look like and how much of that is related to core?

Speaker #8: Growing basically growing wait kicks versus preparing for GR. I mean, the short answer on that last piece is 100% of the investment expansion is around continuing to grow wait kicks today.

Speaker #8: Our plans for how we will launch GR will take form kind of as we progress through the calendar year this year and approach that PDUFA date in 1Q27.

Speaker #8: I'll remind that we were really pleased with the performance we saw in '25, really record-setting performance. And that was based on continuing to tweak some of the fundamentals around our sales execution, marketing, promotional mix, and messaging adding some payer wins and supporting patients.

Speaker #8: As we enter '26, we triggered an expansion of our field-based teams. That's what you were asking about. Overall, it's about a 20% increase in total field-based personnel.

Adam Zeske: As we enter 2026, we triggered an expansion of our field-based teams. That's what you were asking about. Overall, it's about a 20% increase in total field-based personnel. We see that as a really significant and meaningful increase in our share of voice. Also gives us the opportunity to rebalance territories that we, you want to do about every 18 months to 2 years. With our field sales teams, we're seeing that expansion more than 10%, field reimbursement more than 50%, our remote sales teams, more than 10%. It's really meaningful, and we're excited about that opportunity. We've posted those roles. We're already in the process of hiring. We've already identified several of those candidates, so we expect those folks to be in place by the end of this quarter. That's our plan. Thanks for the question.

Speaker #8: So we see that as a really significant and meaningful increase in our share of voice. Also gives us the opportunity to rebalance territories that you want to do about every 18 months to two years.

Speaker #8: With our field sales teams, we're seeing that expansion more than 10%. Field reimbursement more than 50% or remote sales teams more than 10%. So it's really meaningful.

Speaker #8: And we're excited about that opportunity. We've posted those roles; we're already in the process of hiring. We've already identified several of those candidates, so we expect those folks to be in place by the end of this quarter.

Speaker #8: That's our plan. Thanks for the question.

Jeffrey M. Dayno: Great. Thanks, Adam. Yeah, thanks, Adam. With regard to the second question on business development, you know, business development, you know, remains a high priority for us, obviously, with a very strong balance sheet, we wanna deploy that capital and, you know, invest in the business. As we said, you know, the sweet spot, the focus continues to be orphan rare CNS opportunities, late-stage development, as well as commercial on market. We have the capacity to do that. Obviously, we have a strong commercial engine. We'd like to build out, you know, the commercial portfolio. Dedicated business development team, and we're also, you know, looking, and we said this before, you know, adjacencies, broader CNS indications.

Speaker #2: Great, thanks, Adam. Yeah, thanks, Adam. And with regard to the second question on business development, business development remains a high priority for us. Obviously, with a very strong balance sheet, we want to deploy that capital and invest in the business.

Speaker #2: As we said, the sweet spot—the focus—continues to be orphaned, rare CNS. Opportunities in late-stage development as well as commercial, on-market. We have the capacity to do that.

Speaker #2: Obviously, we have a strong commercial engine. We'd like to build out the commercial portfolio. Dedicated business development team and we're also looking and we said this before, adjacencies.

Speaker #2: Broader CNS indications. Obviously, we share today a new opportunity that we're very excited about based on newly licensed IP. With the new formulation of patellus N where we see a significant opportunity around fatigue in broader CNS populations.

Jeffrey M. Dayno: Obviously, we shared today a new opportunity that we're very excited about based on newly licensed IP, with the new formulation of pitolisant, where we see a significant opportunity around fatigue and in broader CNS populations. We are focused and committed to those efforts, deploy our capital towards business development. Sandip, any thoughts on capacity?

Speaker #2: So we are focused and committed to those efforts deploy our capital towards business development. Sandeep, any thoughts on capacity?

Speaker #15: Yeah. Look, I think we're in a very strong position. We have over 880 million dollars in cash on the balance sheet as of last quarter.

Sandip Kapadia: Yeah, look, I think, we're in a very strong position. We have over $880 million in cash on the balance sheet as of last quarter. Just to your question, I mean, not only obviously, we're looking at business development, but of course, we also have a $150 million capacity on the share buyback. We're always looking at opportunities to drive value for shareholders, and that's something that, you know, we have the optionality as a company to move forward there.

Speaker #15: And just to your question, I mean, not only—obviously—we're looking at $150 million capacity on the share buyback. So we're always looking at opportunities to drive value for shareholders, and that's something that we have the optionality as a company.

Speaker #15: And to move forward there.

Jeffrey M. Dayno: Very good. Thanks, Sandip.

Speaker #2: Very good. Thanks, Sandeep. Yeah. Thank you.

Adam Zeske: Yeah, thank you.

Jeffrey M. Dayno: Yeah, thank you.

Speaker #3: Thank you. And we'll go next to Seoyoon Shin, with UBI. Please go ahead.

Operator: Thank you. We'll go next to Soyoon Shin with UBS. Please go ahead.

Soyoon Shin: Good morning. Thank you for taking my question, and congrats on the great year. I have two questions, if I may. First, seems like the settlement for generic entry with the three additional and the filers are now four months early, March 2030, if pediatric exclusivity is granted from the trial settlement agreement of 30 July 2030. Just wanted to check if I'm understanding it correctly. Does it mean without the pediatric exclusivity, the generic entry would start no earlier than September 2029 now? My second question is on Prader-Willi syndrome indication for Wakix. The Phase 3 reading out second half of this year, potential to define 2028. Here, I was wondering, what are you envisioning opportunities from the PWS? It would support the pediatric exclusivity for Wakix and delay generic entry, too.

Speaker #16: Good morning. Thank you for taking my question and congrats on the great year. I have two questions if I may. First, so it seems like the settlement for generic entry with the three additional end-of-fire alerts are now four months early, March 2030.

Speaker #16: If pediatric exclusivity is granted from the trial settlement agreement of July 30, July 2030. So just wanted to check if I'm understanding it correctly.

Speaker #16: Does it mean without the pediatric exclusivity, the generic entry would start no earlier than September 2029 now? And my second question is on predator release syndrome indication for wait kicks.

Speaker #16: So the phase three reading out second half of this year, potential for defined 2028. Here, I was wondering what are your envisioning opportunities from the PWS?

Speaker #16: It would support the pediatric exclusivity for wait kicks and delay generic entry too. But on just the PWS indication itself, the runway would just be about two years from launch if approved.

Soyoon Shin: On just the PWS indication itself, the runway would just be about two years from launch if approved. Are you thinking of trying the PWS with the Pitolisant HD as well?

Speaker #16: Are you thinking of trying the PWS with the patellus N HD as well?

Speaker #2: So Yoon, thanks for your questions. With regards to your first one about the timing of the settlements, you are correct in terms of without the pediatric exclusivity, market entry would be September 2029.

Jeffrey M. Dayno: Soyoon, thanks for your questions. With regards to your first one about the timing of the settlements, you are correct in terms of without the pediatric exclusivity, market entry would be September 2029. We are, you know, we are on track on making very good progress towards pediatric exclusivity, which should take it to March 2030. One of the important components of that, obviously, after the peds narcolepsy data, is the Prader-Willi program, both for potential indication, but, you know, the larger market opportunity, I think, as you're aware, is the 6 months extension with the peds exclusivity. Kumar, further thoughts on that?

Speaker #2: But we are on track making very good progress towards pediatric exclusivity which would take it to March of 2030. One of the important components of that, obviously, after the peds narcolepsy data, is the prod or wheelie program, both for potential indication, but the larger market opportunity, I think, as you're aware, is the six months extension with the peds exclusivity.

Speaker #2: Kumar, further thoughts on that?

Speaker #17: Yeah. With the good morning, Su. With the PWS, in US alone, there are approximately 15,000 patients with prod or wheelie syndrome. About half of these patients have significant excessive daytime sleepiness for which there are no drugs approved.

Adam Zeske: Yeah, good morning, Soyoon. With the PWS, in the US alone, there are approximately 15,000 patients with Prader-Willi syndrome. About half of these patients have significant excessive daytime sleepiness, for which there are no drugs approved. If we are successful with this study, we will go for an indication, really addressing high unmet need in this patient population. In terms of pitolisant HD being a potential option to pursue PWS, that's not how we are thinking right now, but that option is always open to us. Thank you.

Kumar Budur: Yeah, good morning, Soyoon. With the PWS, in the US alone, there are approximately 15,000 patients with Prader-Willi syndrome. About half of these patients have significant excessive daytime sleepiness, for which there are no drugs approved. If we are successful with this study, we will go for an indication, really addressing high unmet need in this patient population. In terms of pitolisant HD being a potential option to pursue PWS, that's not how we are thinking right now, but that option is always open to us. Thank you.

Speaker #17: So if we are successful with this study, we will go for an indication really addressing high unmet needs in this patient population. And in terms of patellus NHD being a potential option to pursue PWS, that's not how we are thinking right now, but that option is always open to us.

Speaker #17: Thank you.

Soyoon Shin: I see. Thank you.

Speaker #16: I see. Thank you.

Speaker #3: Thank you. And we'll take our next question from David Huang with Deutsche Bank. Your line is now open.

Operator: Thank you. We'll take our next question from David Huang with Deutsche Bank. Your line is now open.

David Huang: Hi, good morning. Thanks for taking my questions. Maybe on the new pitolisant formulation, could you talk a little bit about what characteristics and profile you expect to see with that product? How is it, you know, different from, let's say, pitolisant HD? Are there characteristics that lend itself to MSVT and related conditions? Then maybe a second question just around the IP estate for some of these lifecycle management products. Could you just summarize again for us the IP that you either currently have or expect to obtain for pitolisant GR, HD, and then the new formulation? Thank you.

Speaker #18: Hi, good morning. Thanks for taking my questions. So maybe on the new patellus N formulation, could you talk a little bit about what characteristics and profile you expect to see with that product?

Speaker #18: How is it different from, let's say, Patellus N HD? And are there characteristics that lend themselves to MSVT-related conditions? And then maybe a second question, just around the IP estate for some of these lifecycle management products.

Speaker #18: So could you just summarize again for us the IP that you either currently have or expect to obtain for patellus N GR, HD, and then the new formulation?

Speaker #18: Thank you.

Jeffrey M. Dayno: Kumar, on the new opportunity?

Speaker #2: Good morning. On the new opportunity?

Kumar Budur: Yeah. Hey, good morning, David. Thanks for the question. Regarding the new formulation, as we evaluated this opportunity, there might be some potential options for us with this new formulation that could potentially differentiate itself in terms of the PK parameters that probably will lend itself better for the treatment of fatigue in larger indications. Obviously, once we complete the human PK study, that's when we will get to know how exactly this will play out in human, and that will help us determine the next step. For now, we are really excited about this particular formulation because as I mentioned earlier to the other question, this is a very unique opportunity for us to pursue fatigue in broader CNS indications.

Speaker #17: Yeah. Hey, good morning, David. Thanks for the question. Regarding the new formulation, as we evaluated this opportunity, there might be some potential options for us with this new formulation.

Speaker #17: That would potentially differentiate itself in terms of the PK parameters that probably will lend itself better for the treatment of fatigue in larger indications.

Speaker #17: Obviously, once we complete the human PK study, that's when we will get to know how exactly this will play out in humans. And that will help us determine the next steps.

Speaker #17: But for now, we are really excited about this particular formulation because, as I mentioned earlier, to the other question, this is a very unique opportunity for us to pursue fatigue in broader CNS indications.

Speaker #2: And David, in terms of your second question about the IP estate, just briefly, as a reminder, Patellus N GR and Patellus N HD, utility patents, filed out to 2044.

Jeffrey M. Dayno: David, in terms of your second question about the IP estate, just briefly as a reminder, Pitolisant GR and Pitolisant HD utility patents filed out to 2044. This new formulation of pitolisant, the opportunity there is actually an issued patent that we have a license to out to 2042. Formulation work continues on. As Kumar mentioned, the potential of other modes of administration, looking at, you know, the potential, some of these patient populations where there's swallowing dysfunction and other methods of delivery, but an issued patent out to 2042.

Speaker #2: This new formulation of Patellus N—the opportunity there is actually an issued patent that we have, licensed out to 2042. So, formulation work continues on.

Speaker #2: As Kumar mentioned, the potential of other modes of administration—looking at the potential in some of these patient populations where there’s swallowing dysfunction—and other methods of delivery, but an issued patent out to 2042.

Speaker #3: Thank you. And we'll take our last question from Amy Fadia with Needham & Company. Your line is now open.

Operator: Thank you. We'll take our last question from Ami Fadia with Needham & Company. Your line is now open.

Purna: Hi, this is Purna on for Ami. Thank you for taking our question. Are there any recent updates for the enrollment from the ARGUS and the LIGHTHOUSE studies? Just in case I missed this, what are the targets for the recent sales force expansion, and when do you see that impact coming through? Thank you.

[Analyst] (Needham and Company): Hi, this is Purna on for Ami. Thank you for taking our question. Are there any recent updates for the enrollment from the ARGUS and the LIGHTHOUSE studies? Just in case I missed this, what are the targets for the recent sales force expansion, and when do you see that impact coming through? Thank you.

Speaker #19: Hi. This is Poona on for Amy. Thank you for taking our question. Are there any recent updates for the enrollment from the Argus and the Lighthouse studies?

Speaker #19: And just in case I missed this, what are the targets for the recent Salesforce expansion and when do you.

Speaker #17: Good morning, Poona. Argus and Lighthouse study, they continue to enroll. And we continue to make progress. We are on track for top-line data in the first half of 2027.

Kumar Budur: Good morning, Purna. ARGUS and LIGHTHOUSE study, they continue to enroll, and we continue to make progress. We are on track for top-line data in first half of 2027 and PDUFA in 2028.

Speaker #17: And we do find 2028.

Speaker #2: And the second question, just to clarify, the.

Jeffrey M. Dayno: The second question, just clarify the.

Speaker #16: Just wanted to understand when do you see the impact from the Salesforce expansion coming through?

Purna: Just want to understand, when do you see the impact from the sales force expansion coming through?

[Analyst] (Needham and Company): Just want to understand, when do you see the impact from the sales force expansion coming through?

Adam Zeske: Yeah, and thank you, Ami. Yeah, there was a question around the targets as well.

Speaker #17: Yeah. And thank you, Amy. And there was a question—yeah, and there was a question around the targets as well. We did add some targets, but let's say it was about 5%.

Purna: Yes.

[Analyst] (Needham and Company): Yes.

Adam Zeske: We did add some targets, but let's say it was about 5%, so not a huge add. It's really improving our share of voice and rebound from territories targeted at the existing target base that we've been targeting for some time. When would we expect to see that impact? Obviously, as I mentioned, we'd like to get those folks on board and in place by, you know, by the end of this quarter. From the impact standpoint, I guess you would expect to see the impact from that point forward.

Speaker #17: So not a huge add. It's really improving our share of voice and rebalancing territories targeted at the existing target base that we've been targeting for some time.

Speaker #17: And when would we expect to see that impact? Obviously, as I mentioned, we'd like to get those folks on board and in place by the end of this quarter.

Speaker #17: And so from the impact standpoint, I guess you would expect to see the impact from that point forward.

Speaker #2: Thank you.

Purna: Thank you.

[Analyst] (Needham and Company): Thank you.

Speaker #16: Thank you.

Speaker #3: Thank you. I'm showing no further questions. I would now like to turn the call back over for any closing remarks.

Operator: Thank you. I'm showing no further questions. I would now like to turn the call back over for any closing remarks.

Speaker #2: Thank you, operator. And thanks, everyone, for joining our call this morning and for your interest in Harmony Biosciences. Have a great rest of your day.

Jeffrey M. Dayno: Thank you, operator. Thanks everyone for joining our call this morning, for your interest in Harmony Biosciences, have a great rest of your day. Thank you.

Speaker #2: Thank you.

Speaker #3: This does conclude today's Harmony Biosciences fourth quarter and full year 2025 financial results conference call. You may now disconnect your line. And have a wonderful day.

Operator: This does conclude today's Harmony Biosciences Q4 and full year 2025 financial results Conference Call. You may now disconnect your line and have a wonderful day.

Q4 2025 Harmony Biosciences Holdings Inc Earnings Call

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