NASDAQ:HRMY Harmony Biosciences Q4 2024 Earnings Report $29.43 +0.53 (+1.83%) As of 04:00 PM Eastern Earnings HistoryForecast Harmony Biosciences EPS ResultsActual EPS$0.85Consensus EPS $0.74Beat/MissBeat by +$0.11One Year Ago EPS$0.45Harmony Biosciences Revenue ResultsActual Revenue$201.30 millionExpected Revenue$201.25 millionBeat/MissBeat by +$52.00 thousandYoY Revenue Growth+19.50%Harmony Biosciences Announcement DetailsQuarterQ4 2024Date2/25/2025TimeBefore Market OpensConference Call DateTuesday, February 25, 2025Conference Call Time8:30AM ETUpcoming EarningsHarmony Biosciences' Q1 2025 earnings is scheduled for Tuesday, April 29, 2025, with a conference call scheduled at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Harmony Biosciences Q4 2024 Earnings Call TranscriptProvided by QuartrFebruary 25, 2025 ShareLink copied to clipboard.There are 10 speakers on the call. Operator00:00:00Good morning, everyone. My name is Beau, 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 twenty twenty four Financial Results Conference Call. 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. Operator00:00:25Please be advised that today's conference is being recorded. Lastly, if you should require operator assistance, please press 0 at any time. I will now turn turn the call over to Mr. Brennan Doyle, Head of Investor Relations. Please go ahead, sir. Speaker 100:00:39Thank you, operator. Good morning, everyone, and thank you for joining us today as we review Harmony Biosciences' fourth quarter and full year twenty twenty four financial results and provide a business update. Before we start, I encourage everyone to go to the Investors 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 lifecycle, we believe non GAAP financial results better represent the underlying business performance. Our speakers on today's call are Doctor. Speaker 100:01:12Jeffrey Dano, President and CEO Jeffrey Dirks, Chief Commercial Officer Doctor. Kumar Badur, Chief Medical and Scientific Officer and Sandeep Kapadia, Chief Financial Officer and Chief 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 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. Speaker 100:01:47I would now like to turn the call over to our CEO, Doctor. Jeffrey Dato. Jeff? Speaker 200:01:53Thank you, Brandon. Good morning, everyone, and thank you for joining our call today. 2024 was a year of strong execution and meaningful progress for Harmony Biosciences. We continue to strengthen our leadership position in SleepWake, while advancing and expanding one of the most robust late stage CNS pipelines in the industry. Beginning at our Investor Day last October, we outlined a clear path toward becoming the leading CNS company focused on developing and delivering innovative treatments for patients with unmet medical needs. Speaker 200:02:32That path includes advancing our late stage pipeline to deliver one or more new product or indication launches each year over the coming years. We remain committed to delivering on our promise to patients while generating long term durable value creation for shareholders. In fact, our current pipeline, if successful, is poised to deliver over $3,000,000,000 in net revenue going forward. 2024 was also a year of exceptional growth in both our commercial business and in our pipeline through strategic acquisitions. Our net product revenues in 2024 were $714,700,000 representing 23% growth year over year. Speaker 200:03:19In Q4 alone, we generated $201,300,000 in net revenue. This momentum is reflective of the continued durable growth of Wakelet's in narcolepsy based on its broad clinical utility and differentiated profile as the first and only FDA approved once daily non scheduled treatment for narcolepsy and our proven commercial execution. We remain confident in WAKIX being $1,000,000,000 plus opportunity in narcolepsy alone and we are on our way to achieving that milestone well before Wakix LOE in 02/1930. On that topic, today we are also announcing our first generic settlement agreement with Novogen Pharma, resolving the patent infringement litigation related to Novogen's abbreviated new drug application for a generic version of pettolacent hydrochloride. As part of the agreement, Novogen will have a license to sell its generic product beginning January 2030 or earlier under certain circumstances. Speaker 200:04:25In addition, we are on track in pursuit of obtaining pediatric exclusivity for pottolacone, which if granted would add an additional six months of regulatory exclusivity. This settlement reinforces the strength and durability of Harmony's intellectual property portfolio. As you can see, we remain committed to vigorously defending our intellectual property estate. Commercial engine has allowed us to finance our growing pipeline from our balance sheet as a profitable self funding biotech company. Harmony was founded on our leadership in SleepWake and our pipeline is now made up of three orphan rare neurology franchises, each with potential peak sales opportunities of $1,000,000,000 to $2,000,000,000 each. Speaker 200:05:16Before turning to the opportunities ahead of us in 2025, I want to address the recent update on our supplemental new drug application for pettolacin and idiopathic hypersomnia or IH. While we recognized the challenges with this submission, given that the Phase III INTUNE study did not meet the primary endpoint during the four week randomized withdrawal phase, we made the decision to submit the sNDA for pitulsine and IH based on the following three factors. First, the overall benefit risk profile of pitulosin in IH based on the totality of the data second, the unmet medical need in IH based on limited treatment options And third, our deep commitment to the IH patient community. In fact, the Hypersomnia Foundation and more than six fifty members of the IH community signed a petition to the FDA requesting a review of the pitulosin sNDA file for IH, citing the burden of disease and significant lack of treatment options, especially ones that are non scheduled. While this outcome is not what we had hoped for, it is only a short term setback that in no way affects the progress we are making toward our strategic priorities. Speaker 200:06:39In fact, 2025 is shaping up to be a transformational year for Harmony. This is a pivotal moment in our growth story, one where we are advancing important late stage programs, poised to deliver key clinical milestones and reinforce our leadership in sleep wake and rare CNS disorders. Our long term vision has always been to extend our leadership in sleep wake through the development of pitulacint high dose or pitulacint HD and enhanced higher dose formulation of pituloscent designed to deliver an optimized PK profile and therapeutic benefits. Kumar will share more about our development plans for our next generation pituloscent formulations. But what I want you to take away is that this program is the result of patient focused drug development. Speaker 200:07:32These formulations are designed to build on the innovation of pitulacin as a first in class molecule with a novel mechanism of action, action while addressing some of the most common unmet needs in people living with narcolepsy and idiopathic hypersomnia. In addition to demonstrating enhanced efficacy for excessive daytime sleepiness, the Phase III registrational trials for pitotelstand HD, both set to initiate in Q4 twenty twenty five, will also evaluate the common symptom of fatigue in the narcolepsy trial and the very common and burdensome symptom of sleep inertia in the IH trial. With top line data anticipated in 2027 toward PDUFA dates for both narcolepsy and IH in 2028, along with a provisional patent extending to 02/1944, pitulisin HD is the foundation of our long term growth strategy and path toward durable long term value creation. Beyond sleep wake, 2025 will bring another major milestone with the top line data readout from our Phase three registrational trial of ZYN-two in fragile X syndrome, the RECONNECT study in the third quarter. This study was designed to confirm the positive findings from the pre specified analysis of patients with complete methylation in the Phase twothree CONNECT study. Speaker 200:09:06And if positive, could put us on a path toward bringing the first approved treatment for Fragile X Syndrome to patients and their families. Importantly, we possess global rights to ZYN-two, which provides us an opportunity to expand access worldwide if successful. And that is just the beginning. Kumar will share more details with you on our Fragile X program as well as the exciting work we are doing in 2025 to advance our innovative rare epilepsy franchise with EPX100, the most advanced five HT2 agonist clinical development program in the clinic. With registrational trials in both Tervais syndrome and Lennox Gastaut syndrome, we are building a rare epilepsy franchise with potential to have a meaningful impact on the lives of these patients with plans to go broader in the developmental and epileptic encephalopathy space. Speaker 200:10:09Based on our strong foundation of commercial success with Wakeix, we have been very busy over the past two years building out our pipeline and we are just getting started. The acquisitions we did were thoughtful and strategic, leading to our three orphan rare CNS franchises. And we remain actively engaged in identifying and evaluating additional opportunities that could expand our leadership in sleep wake, neurobehavioral disorders for rare epilepsies and other seizure disorders. With over $576,000,000 in cash and cash equivalents in the balance sheet, we are in a solid position to deploy our resources to expand our pipeline and create meaningful value for patients and shareholders alike. As you can see, these upcoming catalysts underscore why 2025 is shaping up to be a transformational year for Harmony. Speaker 200:11:07Harmony is a growth story built for long term success with a market leading sleepwake franchise, a robust late stage pipeline and the experience and strategic ability to navigate short term challenges that make us stronger and even more committed to our long term mission to develop and deliver innovative therapies for patients living with rare neurological diseases. When we deliver on our promise to patients, we generate long term durable value creation for our shareholders. Thank you. And I will now turn the call over to Jeffrey Dirks, our Chief Commercial Officer, to give you an update on our commercial performance. Jeff? Speaker 300:11:47Thanks, Jeff. Q4 and full year 2024 showed continued strength in our underlying business fundamentals and durable growth as we surpassed $700,000,000 in net sales and over 7,000 average patients on Wakeix. Net sales for the fourth quarter were $201,300,000 and full year 2024 net revenue was $714,700,000 a 23% increase from full year 2023. We continue to see strong double digit growth in net revenue for Wakeix heading into year six of our commercialization, demonstrating continual high interest of Wakeix in the narcolepsy market. The solid net sales performance in 2024 reaffirms our confidence in Wakeix representing a potential 1,000,000,000 plus opportunity in narcolepsy alone. Speaker 300:12:35For the fourth quarter of twenty twenty four, we saw continued growth in the average number of patients on Wakeix and in the Wakeix prescriber base, both facilitated by favorable market access as seen on Slide five. The average number of patients on Wakeix increased to approximately 7,100 in the fourth quarter. We are extremely pleased with the approximate 300 sequential increase in average patients on Wakeix from what we reported last quarter. We saw continued growth in pediatric narcolepsy prescriptions and prescribers in Q4, but consistent with Q3, the vast majority of our growth came from the adult narcolepsy, which constitutes approximately ninety five percent of the diagnosed narcolepsy opportunity. The growth in average patients in the fourth quarter was in line with our expectation and reaffirms our confidence in future growth with Wakeix. Speaker 300:13:24Fueling the growth in patient adds on Wakeix was the strength of the Wakeix prescriber base. We saw solid growth in the Wakeix prescriber base beyond OXIBATE REMS enrolled healthcare professionals, demonstrating that Wakeix continues to expand the branded writer segment of the market beyond the OXIBATE. We are now more than 50% penetrated in this segment of approximately 5,000 healthcare professionals at the end of the fourth quarter. Coupled with the growth we're seeing beyond the OXTABATE REMS enrolled healthcare professionals, we continue to see utilization of Wakeix among the approximately 4,000 OXTABATE REMS enrolled healthcare professionals, even with the availability of new and generic OXTABATE options. We are highly penetrated in the prescriber audience and see Wakeix being prescribed to additional narcolepsy patients each quarter in this segment. Speaker 300:14:11Wakeix provides a meaningfully differentiated product profile and one that offers broad clinical utility across the entire narcolepsy trading healthcare professional universe, allowing us to tap in to the full diagnosed narcolepsy patient opportunity of approximately 80,000 patients. Looking ahead for full year 2025, we expect continued growth in the underlying business fundamentals for Wakeix with net revenue guidance of $820,000,000 to $860,000,000 We anticipate a similar rhythm to our business as we've seen in traditional seasonal payer dynamic headwinds that impact the industry as a whole in the first quarter. Tailwinds coming out of Q1 into Q2 with stronger prescription demand. Typical seasonal headwinds in the third quarter was lower patient visits that are common for all products and diseases that are chronically managed and tailwinds in the fourth quarter with strong patient refill behavior as we close out the year. With Waitress on track to achieve $1,000,000,000 plus in narcolepsy alone and with a robust scalable commercial infrastructure we have built, we have the strong foundation to drive growth and value in our next generation pitulosan program. Speaker 300:15:19We are advancing both pitulosan gasser resistant or GR and pitulosan high dose or HD through the lens of patient centric drug development. With the goal of improving patient care with meaningful features and benefits and extending durable patient growth and revenues of the Bittulson franchise into the mid-2040s. Kumar will share more details on the HD and GR development programs. Preliminary market research that we conducted with healthcare professionals and payers with the HD target product profile showed early excitement and strong anticipated update by healthcare professionals and expected favorable market access coverage from payers. Additionally, our unique commercial model will be deployed to support the transition of the Potalasan franchise. Speaker 300:16:05In summary, WACUS continues to deliver strong growth heading into year six of our commercialization. The patient centric drug development approach to our Potalasan lifecycle management program strengthens our franchise and leadership position in SleepWake and is poised to deliver durable patient growth and significant revenues to the mid-2040s. I would like to now turn the call over to our Chief Medical and Scientific Officer, Kumar Badur, to discuss the advancement in our clinical development programs. Kumar? Speaker 400:16:34Thank you, Jeff. Good morning, everyone, and thank you for joining us today. In R and D, we continue to make good progress in advancing our pipeline across 13 development programs, eight different assets and three distinct financials focused on rare neurological indication with high unmet medical needs. We currently have four Phase III registrational trials ongoing in four distinct indications, and we will have six Phase III registrational trials by the end of the year. This makes our portfolio one of the robust late stage pipelines in the industry with the potential to deliver one or more new product or indication launches every year in the coming years. Speaker 400:17:19Our full clinical development pipeline is shown on Slide number eight, and the clinical development highlights are on Slide nine through Slide 13. Starting with our Phase three franchise. As we discussed recently, we received an RTF for IHSNDA. We are deeply disappointed with this outcome. The rationale that the FDA provided for the RTF was based on data from the randomized withdrawal phase of the Intune study. Speaker 400:17:51However, as we have discussed previously, the data from the open label phase showed that patients experienced improvements on the effort sleepiness scale that were about five times greater than what is recognized as clinically meaningful, and the majority of the patients in the long term extension study achieved normal levels of wakefulness and sustained this response beyond one year. This data, along with real world data from the physicians treating IH and the capacity of program, as well as the well established safety and tolerability profile of Matrix and its non skittered status made a strong benefit proposition for pitalopentine IH. This is why we submitted the sNDA for pitalopentine IH because it was the right thing to do for our patients. Our commitment to bring pitalopent for patients with idiopathic hyposmia remains unchanged. We are on track to initiate the Phase III registrational trial in idiopathic hyposmia in Q4 twenty twenty five with Pitovacin HD, an optimized and higher dose formulation, which is anticipated to provide larger efficacy for ADF and also target symptoms, such as sleep inertia, one of the core symptoms in patients with idiopathic hyposomnia. Speaker 400:19:16This double blind randomized placebo controlled parallel launch study is designed with input from the FDA and the anticipated to do for date for this program in 2028. We are also on track to initiate the pivotal Phase III registrational trial in nocolepsy with Fetomacent XT in Q4 twenty twenty five with the topic PDUFA in 2028. With the optimized and higher dose formulation, petrolazonext HD is anticipated to deliver rapid efficacy in excessive daytime sleepiness, the greatest unmet need in patients with narcolepsy and also target symptoms such as fatigue in narcolepsy for which there are no approved treatments. Moving on to Pitelofen GR program, this formulation is designed to address the GI comorbidity prevalent in almost eighty percent of patients with narcolepsy and designed to give the patients an ability to start at the therapeutic dose range with no titration. We are on track to initiate pivotal bioequivalence study this quarter, and the top line data is expected in Q3 'twenty five with anticipated to do for date in 2026. Speaker 400:20:36Promescent patents have been submitted for both pitofen GR and pidolofen HD with the potential for patent protection until 02/1944. Moving on to our orexin two receptor agonist program, BD1.15205, a potential best in class orexin II receptor agonist currently in preclinical phase. The in vitro pharmacology data demonstrated greater potency compared to all the other orexin II receptor agonists based on publicly disclosed data. The combination of high potency, excellent selectivity, potential for one third day dosing and robust preclinical data makes our orexin II receptor agonist a potentially best in class asset. We plan to present the comprehensive preclinical safety and efficacy data at the upcoming annual sleep meeting in June, and we are on track towards filing an IMPD in mid-twenty twenty five and initiating first in human study in the second half of this year. Speaker 400:21:44Moving on to our neurobehavioral front line. The next major catalyst in our portfolio is the top line data from the Phase III registrational trial of ZYN002 in Fragile X Syndrome, the VCONNECT study. Fragile X Syndrome is a rare genetic disorder caused by mutation in FMR1G on X chromosome, resulting in decreased or lack of FMR protein production that results in the dysregulation of the endocannabinoid system manifesting itself with intellectual impairment, developmental delays, and significant neurobehavioral symptoms. In fact, Fragile X syndrome is the most common inherited cause of intellectual impairment and autism spectrum disorders with a prevalence of approximately eighty thousand patients each in The U. S. Speaker 400:22:34And EU. ZYN002, a pharma physically manufactured 100% synthetic cannabidiol, is a patent protected, polyneasin enhanced gel that offers a unique treatment option by helping maintain the endocannabinoid homeostasis by interacting with CB1 receptors and treat the neurobehavioral symptoms. The transdermant route of administration offers significant benefits from a tolerability and safety perspective compared to oral administration of cannabidiol that results in significant nausea, vomiting, abdominal cough, and diarrhea. In addition, oral administration of cannabidiol can result in abnormal liver function tests because of the first pass metabolism, and that is not observed with CY-two. The ongoing Phase three registrational trial, the RECONNECT study, is based on the data and the learning from last Phase two, three CONNECT study. Speaker 400:23:39In a sense, we are attempting to replicate the strong efficacy signals that we observed in patients with complete methylation in the CONNECT study. The INCONNECT study, if positive, is expected to meet the registration requirements for both the FDA and the EMA, and we have global rights for B1-two. We are on track to report the top line data in Q3 twenty twenty five. Based on the pathophysiology of flagellaric syndrome, the mechanism of action of B1002, the clinical data from the CONNECT study and the RECONNECT study design, we have a high degree of conviction in the RECONNECT program and if approved, this will be the first and only approved treatment for any symptoms in patients with Fasolet Syndrome. We are also on track to initiate the Phase III registrational trial in 22q deletion syndrome in 2025. Speaker 400:24:4222q is another rare disorder with a prevalence of approximately eighty thousand patients each in The U. S. And Europe and with prominent neurobehavioral symptoms for which there are no approved treatments. Moving on to our epilepsy franchise. We have the most advanced development program in developmental and epileptic encephalopathy. Speaker 400:25:06We have two investigational candidates, EPX100, that's clamsol heterochloride, and EPX200, liquid locasarin, for the treatment of developmental and epileptic encephalopathies. EPS100 works to be a modulation of five eighty two serotonin receptors and enhances the serotonin tone. The serotonin mechanism of action is a validated mechanism of action in DE And EPX-one hundred also showed efficacy in several preclinical models for various other developmental and epileptic encephalopathies, suggesting a broad utility for EPX-one hundred in DEE. EPX-one hundred is administered in a liquid formulation with BID dosing, a simple dosing regimen that is especially meaningful for patients living with DEEs. We are currently recruiting globally for our Phase III registrational trial in TOWAY SYNTHROUGH, the ARKUS study, and we also initiated the global Phase III registrational trial in LCR, the LIGHT HUB study in the fourth quarter of last year. Speaker 400:26:16The top line data for both programs are anticipated in 2026. Our other investigational product in developmental and epileptic and topographies, EPX-two hundred, a liquid formulation of locaspirin, is in the pre IND phase. Overall, we are progressing our latest pipeline across our three distinct franchises. If successful, these programs could result in one or more new product or indication launches every year for the coming years. And more importantly, we found the potential to help hundreds of thousands of patients with rare neurological disorders for whom there are either no approved treatments or limited treatments that come with significant limitations in efficacy and or safety and tolerability. Speaker 400:27:07As always, 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 program. I will now turn the call over to our CFO, Sandeep Kapadia, for an update on our financial performance. Sandeep? Speaker 500:27:32Thank you, Kumar, and good morning, everyone. This morning, we issued our fourth quarter earnings release and filed our 10 K while we will find the details of our fourth quarter and full year 2024 financial and operating results. Our financial performance is also shown on Slides 14 through 16. We finished the year with great momentum across the business, delivering strong growth across several of our key metrics, setting us up for another successful year in 2025. We continue to be a profitable, cash generating company, able to fund the growth and advancement of our pipeline fully with the strength of our balance sheet. Speaker 500:28:16We delivered another year of double digit top line growth as we reported $714,700,000 in annual late age net revenue, while continuing to be profitable, cash generating biotech company. Our strong financial performance combined with a solid balance sheet, including approximately $576,000,000 in cash and cash equivalents, positions us well to continue advancing our industry leading pipeline along with driving continued commercialization of Waitix and Narcolepsy. For the fourth quarter of twenty twenty four, we reported net revenues of $201,300,000 as compared to $168,400,000 in the prior year quarter, representing year over year growth of 20% and our highest quarter to date. Performance in the quarter reflects the strong sustained underlying demand for Wicked. We also reported total operating expenses for the fourth quarter of ninety one point one million dollars compared to $85,100,000 dollars in the same quarter in 2023, representing a 7% increase. Speaker 500:29:29The growth was primarily driven by our expanding late stage pipeline along with investments for the commercialization of Wakeys and Norcolepsy. Non GAAP adjusted net income for the fourth quarter of twenty twenty four was $63,000,000 or $1.08 per diluted share compared to $42,800,000 or $0.73 per diluted share in the prior year quarter. We believe non GAAP adjusted net income better reflect the underlying business performance. Please see our press release for a reconciliation of GAAP to non GAAP results. We ended the fourth quarter with $576,100,000 of cash, cash equivalents and investments. Speaker 500:30:13The balance reflects robust cash generation $19,800,000 from operations in 2024, providing us with the financial flexibility to execute our growth strategy. Looking ahead to 2025, as we previously disclosed, our guidance for net revenues for 2025 is $820,000,000 to $860,000,000 We believe this guidance reflects the strong expectations for the year and demonstrates that we're approaching the $1,000,000,000 plus opportunity in Wake Tech and North Westfield alone. As a reminder, a comment on seasonality as we think about the phasing for revenues for the first quarter of twenty twenty five. We expect to see typical seasonal dynamics that the industry as a whole experiences each year in Q1. This includes higher gross domestic options due to insurance plan free sets and higher co pay obligation, along with potential for drawdown in trade inventory. Speaker 500:31:15With respect to expenses, we expect increased R and D investment as we continue to build our pipeline. We also expect to potentially incur $29,000,000 in R and D related milestone payments in 2025, including milestones for the completion of enrollment and positive top line in our ZYN002 Phase three program as well as started study in our orexin program. In summary, I'm pleased with our strong financial performance in 2024. We once again delivered another year of strong top line growth, maintained healthy operating margin, while continuing to generate cash. This positions us well as we enter 2025 with the potential for significant value creation through our catalyst risk pipeline. Speaker 500:32:04And with that, I'd like to turn the call back over to Jeff for his closing remarks. Jeff? Speaker 200:32:10Thank you, Sandeep, and thanks everyone for joining our call today. As you have heard, twenty twenty five is set up to be a transformational year for Harmony. With a market leading SleepWake franchise, a catalyst rich pipeline and a clear path for continued growth, we are in a strong position to execute on our vision of becoming the leading CNS company focused on delivering innovative treatments to patients with unmet needs. 2025 will be a pivotal moment in our long term growth strategy. I am proud of the progress that the Harmony team has made and we are well positioned to deliver on our promise to patients while also generating durable long term value creation for our shareholders. Speaker 200:32:58Thank you again. And I will now turn the call back over to the operator. Operator? Speaker 400:33:02Thank you, Doctor. Operator00:33:19We'll go first this morning to Charles Duncan at Cantor Fitzgerald. Speaker 200:33:24Hey, good morning, Todd, Jeff and team. Congrats on a nice fourth quarter patient adds for Wake X. I since I'm going to answer just one I guess, beyond the methylation rates, how do you feel about the range of weights in terms of the patients being enrolled or ages? And then finally, how is the open label extension going? What's been the rollover rate into that? Speaker 200:34:11Yes. Good morning, Charles. And thanks to your question on CYN-two and the ongoing Phase three Reconnect trial. Kumar, more color on Charles' question. Speaker 400:34:21Yes. Hey, good morning, Charles. Thanks for the question. We are very pleased with the way the trial is ongoing, Charles. We are on track for top line data in the third quarter of this year. Speaker 400:34:34The primary endpoint is in patients with complete methylation, but we are also enrolling a nominal number of patients who also have partial methylation. If the primary endpoint endpoint in patients with complete methylation is positive and if we see a strong signal in patients with partial methylation, there is an opportunity for a broader label. In terms of your question in terms of ACE, we are enrolling patients in the ACE group of three to thirty years. And in terms of weight, the weight is variable, obviously, depending on many factors, including the age. And one of the things that we did in RECONNECT study is went higher on the dose in patients who weigh more than fifty kilogram. Speaker 400:35:22The dose is seven fifty milligram per day administered in two equally divided doses at three seventy five PIP. In the open label or rather long term extension study, a good proportion of patients are rolling over into long term extension study, and we have discussed this in the past. Currently, if you look at all the way back to the patients who enrolled in the very first Faso X Syndrome study, some of these patients are exposed to thirty one thousand and two for over eight years now. This level of persistency is unprecedented in neuropsychiatric trials. It just speaks to the durable efficacy or effectiveness of B1002 in this patient population. Speaker 400:36:09Hope that answers all of your questions. I know it was a multi part question. We did not want to miss anything. Thank you. Speaker 200:36:18Super, that's helpful. Looking forward to the data. Speaker 100:36:21Thank you, Charles. Operator00:36:25Thank you. We go next now to Francois Brisebois at Oppenheimer. Speaker 600:36:32Hi. This is John Gregory Dean on Speaker 200:36:34for Frank Bruzel at Oppenheimer. Thank you for taking our questions. I was wondering, why should we feel comfortable that Pitolifin HD has a higher likelihood of success in IH patients? John, thanks for your question. I think we have data with regards to and Kumar can expand showing dose response and exposure response with the Tullison over the years in the clinical trials that have been done. Speaker 400:37:03Frank, good morning. Thanks for the question. Look, I would like to answer this question in two parts. First and foremost is efficacy evidence for efficacy of pitollosin in patients with idiopathic hyposonin in general. The INTUNE study clearly showed the magnitude of efficacy in the open label part quite gaseous compared to what is recognized as clinically meaningful. Speaker 400:37:30In the long term extension study, patients continue to derive benefit one year out and they were within the normal range for wakefulness. And moving on to pitulacint HD formulation, It's an optimized formulation of pituloscent with an optimized PK profile and the higher dose, and there is a body of evidence from all of our clinical trials that show clear dose response and exposure response. So based on all of this data, we have high confidence that pidolacent HD will not just be efficacious in patients with idiopathic hypostompsia, but we will see a larger magnitude of efficacy in excess data and sleepiness and also impact symptoms like sleep inertia, which is a co symptomia for which there are no approved treatment. And finally, the trial design, Frank, the upcoming study, which we plan to initiate in the fourth quarter of twenty twenty five, will be a double blind placebo controlled randomized parallel ARM study. And with random as we told study design, there are some challenges on how to interpret the data, and the traditional parallel on design study will be much more helpful in interpretation of the data. Speaker 400:38:49Thank you. Operator00:38:51Thank you. We go next now to David Amsellem at Piper Sandler. Speaker 300:39:00Hey, thanks. So regarding pitollisent HD, I want to drill down in your assumption for twenty twenty eight PDUFA. There's obviously a number of trials in NT1 and NT2 and eventually IH for various orexin agonists. So can you talk to how you're feeling about pace of enrollment of your pitollisense HD trials and how confident you are in your 2028 assumptions given that you're competing for patients? Thanks. Speaker 200:39:35Yes. Good morning, David. No, great question. I think Kumar can give you sort of our assumptions and the plan on the development program. Speaker 400:39:43Hey, good morning, David. Thanks for the question. Yes, there is competition. Many clinical trials are ongoing. But if you look and compare and contrast to clinical trials in narcolepsy with idiopathic hypersomnia. Speaker 400:39:57There are relatively less number of clinical trials in idiopathic hypersomnia. And the good thing is based on the data from the INTUNE study, we have already showed a robust signal and that will definitely help with the recruitment of pittolifent HD clinical trial compared to other clinical trials that are ongoing or that are coming up. And also this is a global clinical trial. We just completed idiopathic hyposcomia clinical trial, so we have established relationship with the site. We know these sites very well. Speaker 400:40:31Our long term extension study is still ongoing, so we have continued relationship with these sites. All of these things will factor into on how we will recruit for our upcoming Phase III clinical trial with pitollosimetry. We are confident in the timeline. Speaker 300:40:47What about competition for patients with narcolepsy? Speaker 400:40:52Yes. Good question, David. We are also on track to commence Phase three study in narcolepsy with Pitolifent HD in the fourth quarter and anticipated to do for date in 2028. Once again, I would like to switch back to we know this space. We have been working with these investigators for a number of years. Speaker 400:41:16We know the sites and also this is going to be a global clinical trial. Our partner BioPlus, they are very active in Europe. So based on everything that we know about the disease condition, the clinical trial sites, the investigators, we feel confident with our timelines. Speaker 200:41:32Yes. Stephen, I would also add, I think we have plans with regard to other regions globally where we're able to sort of access in terms of accelerating that trial, having access to patients and being able to hit our timelines. Speaker 400:41:48All right. Thank you. Thanks, David. Operator00:41:53Thank you. We'll go next now to Gregg Sivanovich at Mizuho Securities. Speaker 700:42:00Good morning. Congrats on the quarter and the year. And thanks for taking my questions. I just want to first congratulate you Speaker 400:42:06on the Speaker 700:42:06patent settlement that you announced this morning. I was wondering if you can comment what the status is of the remaining patent challenges, if you could remind us how many other patent challenges there are? And also I believe on in your third quarter Q, there were some upcoming dates potentially even starting next month in terms of litigation. So if you could just remind us on timelines with the litigation and potential kind of next steps there? Thank you. Speaker 200:42:37Yes, sure, Greg. Yes, good morning. So I think that with regards to the ongoing process here, so obviously this morning we announced the first generic settlement agreement with Noligan Pharma and it's one of the seven ANDA filers. With regards to the next steps, I think it's important to remember that both the regulatory and legal processes continue forward in parallel with regard to the ANDA process. So while we'll see the ongoing process, I think the Markman hearing, as we mentioned, is scheduled for March and that sets up the claims construct followed by the trial which will take place in 2026. Speaker 200:43:27I think we are beyond the first settlement. We're actively engaged with the other end of filers, but obviously we can't comment on ongoing litigation matters and we'll provide updates as appropriate. But I think what is important to remember and in terms of sharing the news that the Novogen settlement really reinforces the strength and durability of Harmony's intellectual property. And I think it also shows how we're committed to vigorously defend the intellectual property on the state. And we'll provide updates as appropriate going forward on the rest of the Andel litigation process. Speaker 700:44:12Okay. Thank you. Operator00:44:16We'll go next now to Amy Fadia at Needham. Speaker 800:44:20Hi, good morning. Thanks for taking my question. I've got one question and a follow-up. Firstly, just on ZYNOL2 with the data coming up later this year, it's certainly a focus for investors. Could you sort of frame what would be success for the trial in terms of the endpoints and how much of a clinically meaningful change you would like to see? Speaker 800:44:46And can you remind us if the FDA would accept the first sort of Phase twothree study, the CONNECT study as part of the filing package sort of with the two Phase three trials that are required? And then just separately on the idiopathic hypersomnia study for the high dose, maybe aside from the change in the trial design, what else do you think you need to do in terms of perhaps the duration for which you study the patients etcetera to really sort of tease out the benefit of the dolosat and IH? Thank you. Speaker 200:45:25Yes. Good morning, Ami. Thanks for your questions. Thanks for your interest in CYN002. And I think Kumar can address that, so you understand what success would look like on that Phase III trial. Speaker 200:45:37Kumar? Hey, good morning, Gomi. Thanks for the question. ZYN-two is our next major catalyst Speaker 400:45:45top line data readout scheduled for third quarter of this year. Regarding your question about what a successful trial would look like, a successful outcome by demonstrating a statistically significant and clinically meaningful outcome on the primary endpoint, which is the social avoidance subscale in patients with complete methylation. In essence, Ami, what we are trying to do in RECONNECT study is replicating the positive findings that we saw in the CONNECT study in patients with complete methylation on social avoidance subscale in this particular patient population. In terms of your question about will the FDA accept the Phase II, III CONNECT study data, yes, they will because at the end of the day, this will contribute to the totality of evidence, not just from an efficacy perspective but also from a safety and tolerability perspective and also the extensive data that we continue to generate from the long term extension study. Because Fasolic Syndrome is a rare condition, what we need is only one adequately and well controlled study that shows statistical significance. Speaker 400:47:06The data from the CONNECT study will be supportive data in our NDA package if the study is positive. Finally, in terms of your question about idiopathic hypostomy epitheliosent HD and the trial design, It's we have a good idea, Ami, in terms of the duration of the study and the endpoints, again based on the INTUNE study. The data from the INTUNE study granted that the primary endpoint was not statistically significant in the randomized LUTAL period of the study, the data from the open label long term extension study gave us a pretty good idea in terms of what to expect with pitalosin in general and especially with pitalosin HD, which is an optimized and a higher dose formulation. One last thing which I actually wish to say is you asked about the clinical meaningfulness. In the social avoidance subscale for patients with Fragile X syndrome, a change in about three points from baseline is considered as clinically meaningful. Speaker 400:48:19Hope I answered all of your questions. Thanks, Ami. Speaker 800:48:23That was very helpful. Thank you. Speaker 200:48:25Thanks, Ami. Operator00:48:28We'll go next now to David Wong at Deutsche Bank. Speaker 900:48:33Hi there. Congrats on the quarter and taking my questions. So I had two here. So the first one just with the Toulasan HD, could you elaborate a little bit more about the rationale and approach to look at AT and sleep inertia in narcolepsy and IH respectively? And do you plan to, I guess, pursue these as co primary endpoints? Speaker 900:48:56Are you looking for labeled indications? And how does that sort of enhance the overall commercial opportunity? And then also on your orexin receptor agonist, I was wondering about how you're thinking about the first in human study there and would you do what some of your peers have done in terms of looking at sleep deprived healthy volunteers? Thanks a lot. Speaker 200:49:21Thanks, David. Let me just start and then Kumar can expand. With regards to sleep inertia as a key symptom in patients with IH, in addition to EDS and also in pursuit of a differentiated label, sleep inertia, somewhat pathognomonic, if you will, like cataplexy is for narcolepsy. So that is the rationale behind that. And it's also there are scales that are fit for purpose that can address that. Speaker 200:49:54In terms of the other thinking around how we'll capture that in the development program, Kumar? Speaker 400:50:00Yes. Good morning, David. Thanks for the question. So in terms of fleet inertia, David, again, we generated a lot of data from the INTUNE study, and most of it was discussed at our investors' meeting last year. The sleep inertia questionnaire that we utilized as one of the endpoints in the INTUNE study showed a pretty good response and the response was sustained beyond thirteen months in vast majority of the patients. Speaker 400:50:29So we know pidolacin works in sleep inertia and we know we can capture that improvement via sleep inertia questionnaires. In terms of your question on how do we want the label of the goal is always to get it in the label differentiated label, which is relevant to HD in patients with idiopathic hypersomnia. Regarding your question on Orexin receptor, Agonist, based on the preclinical data, the potency, the selectivity, potential for one hundred and thirty eight dosing, novel chemical structures, good preclinical safety and efficacy data, we believe this is potentially a best in class polyacrylam receptor agonist. We are on track for IMPD submission in middle of twenty twenty five this year, and we will also first in human studies in the second half of this year. In terms of how we do that, the goal is to have a nimble and an accelerated clinical development program to make sure that we have the right data sets as we move from one phase of development to the next. Speaker 400:51:36We will definitely leverage some of the lessons from other development programs, which are slightly ahead of us. In terms of details, whether healthy volunteers, key deployed healthy volunteers directly into patients, that's something that we will disclose in due course of time as we approach those clinical trials. Thanks, Kumar. Operator00:52:00Thank you. We'll go next now to Ash Verma at UBS. Speaker 800:52:05Great. Thanks for taking my question. So I wanted to ask about the orexin pipeline asset. There's some emerging literature that is pointing that agonizing orexin can accelerate Alzheimer's pathology and this has been shown in preclinical and clinical models now. So I wanted to understand like how do you think about this as an effect on your program and would that be higher at higher doses? Speaker 800:52:30And lastly, is that something that would be on the radar of the FDA? Thanks. Speaker 400:52:36Hey, Ash. Good morning and thanks for the question. Ash, this was something that used to be discussed many years ago because in some of the preclinical experiments, there was some increase in TAL proteins in the cerebrospinal fluid in the preclinical experiments. That had more to do with the Orexin one receptor agonist. But really, what eventually was concluded is it's actually the insomnia and the sleep deprivation that increase the TOW levels rather than anything to do with the orexin receptor antagonist or antagonist itself. Speaker 400:53:23So this is not something that we have seen in any of our preclinical models. And also this is not something that has been seen in some of the ongoing clinical trials and some of who actually have long term data, for example, in the TASK nine ninety four study that was discontinued because of safety issues. So for now, that is not a concern. I don't think there is any level of evidence to suggest any increased risk of cognitive impairment with orexin two receptor agonists. Thanks, Kumar. Operator00:54:03Thank you. We'll go next now to Patrick Trucchio at H. C. Wainwright. Speaker 700:54:08Good morning and thank Speaker 300:54:08you for taking my question. This is Luis Santos in for Patrick. On the PULASENCE GR, the gastric resistant formulation, the BioCabulin study is expected to read out this third quarter. What key data points do you expect would support the regulatory submission? And is that regulatory submission still on track for later this year, beginning of next year for PDUFA date next year? Speaker 300:54:34Thank you. Speaker 200:54:36Thanks, Elyse, for your question. Kumar? Good morning. Thanks for Speaker 400:54:41the question. We are on schedule to initiate the pivotal bioequivalence study this quarter and the top line data we expect to be available in the third quarter. This is the standard pivotal bioequivalence study where we aim to show bioequivalence, which is 80% to 125% of the range for within the 90% confidence interval for Cmax and AUC. In terms of the PDUFA, we are on track for a PDUFA date in 2026. Thanks, Kumar. Operator00:55:25Thank you. We go next now to Jason Gerberry at Bank of America. Speaker 600:55:31Hey guys, thanks for taking my questions. I wanted to hit on two topics today. This is Bhagwan on for Jason. The first is regarding the RFP letter for pitollosant in NIH. Can you elaborate on the specific concerns raised by the FDA regarding the INTUNE study data? Speaker 600:55:48And how does this inform the Phase three trial for pitollosant HD, which is expected to start in 4K twenty twenty five. Maybe if you can provide some more details on the planned trial design, including the planned duration of treatment, trying to get at how this trial addressed the limitations of the INFINED study and provide more robust evidence of efficacy? And then my second question is with regards to the next gen etolizant. Can you remind us what evidence supports the hypothesis that higher doses of etolizant provide greater wake promoting efficacy without introducing a saturation effect on H3 receptor inverse agonism? Thank you. Speaker 200:56:29Yes. So, yes, let me address your first question with regards to the RTF. So I think that basically the RTF was based on the FDA's Speaker 400:56:43review Speaker 200:56:45was on the primary endpoint that was not statistically significant when they were looking at the SMDA submission, a very traditional sort of conservative approach to the totality of the evidence and the robustness of the signal that was seen. But I think as we shared, really the focus is on pituitl in HD and the longer term opportunity there with regards to the plan to pursue a Phase III trial that we initiate in the quarter with a randomized prospective parallel group design, which was in concurrence with the agency in terms of the trial design. And then then all of the clinical trials with the TOLFSEN and narcolepsy utilizing that design and demonstrating the strong efficacy on excessive daytime sleepiness. So that is the focus there as we go forward with regards to the IH program for Pulsin HD. Speaker 400:57:51Kumar? Yes. Hey, good morning, Pawan. Thanks for the question. Pawan, in terms of pepidolifent HD program, as mentioned earlier, we are on track to initiate the study in Q4 of this year and with a potential PDUFA date in 2028. Speaker 400:58:07In terms of the evidence itself, there is a body of evidence from all of our clinical trials that show a dose response and exposure response with pittolacide. The original trial, original pivotal nocollicity trials that were conducted by our partner Bio Brazil many, many years ago employed a dose to effect dosing strategy. Therefore, some of the higher doses were never really interrogated. So here, we have an opportunity to do that with an optimized formulation at a higher dose and capture the largest efficacy that we anticipate with the higher dose based on the data that we have. We will be doing this without compromising on the safety or tolerability of the tolerability associated with petolacent. Speaker 400:59:03We disclosed data where we did a Phase 1b study where petolacent was administered up to one hundred and eighty milligrams in repeat dose study, and the safety and tolerability was consistent with the established safety and tolerability profile of pedomasolact. So a really nice opportunity to generate efficacy and safety data in narcolepsy, also targeting fatigue in idiopathic hypersomnia, also targeting sleep inertia and an opportunity to have a differentiated label in both of these indications. Thank you. Thanks, Kumar. Operator00:59:46Thank you. And there are no further questions today. Doctor. Dana, I'd like to turn things back to you, sir, for any closing comments. Speaker 200:59:52Yes. Thank you, Bo. And thanks, everyone, for your interest in Harmony Biosciences and for joining our call today. And I wish everyone have a great rest of your day. Thank you. Operator01:00:03Thank you very much, Anthony. Again, ladies and gentlemen, this does conclude Harmony Biosciences' fourth quarter and full year twenty twenty four financial results conference call. You may now disconnect your line and have a wonderful day. Goodbye.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallHarmony Biosciences Q4 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Annual report(10-K) Harmony Biosciences Earnings HeadlinesFirst Week of June 20th Options Trading For Harmony Biosciences Holdings (HRMY)April 24 at 12:06 AM | nasdaq.comHarmony Biosciences price target lowered to $32 from $33 at BofAApril 22 at 1:46 AM | markets.businessinsider.comJames Altucher: Do not invest in AI unless…I made millions during the crypto boom. Many “experts” are now saying… Artificial Intelligence opportunities could be even bigger.April 24, 2025 | Paradigm Press (Ad)Bank of America Securities Sticks to Its Sell Rating for Harmony Biosciences Holdings (HRMY)April 22 at 1:46 AM | markets.businessinsider.com6HRMY : Breaking Down Harmony Biosciences...April 8, 2025 | benzinga.comHarmony Biosciences Presents Promising Open-Label Extension Data of ZYN002 in Fragile X SyndromeApril 8, 2025 | finance.yahoo.comSee More Harmony Biosciences Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Harmony Biosciences? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Harmony Biosciences and other key companies, straight to your email. Email Address About Harmony BiosciencesHarmony Biosciences (NASDAQ:HRMY), a commercial-stage pharmaceutical company, focuses on developing and commercializing therapies for patients with rare and other neurological diseases in the United States. The company offers WAKIX (pitolisant), a molecule with a novel mechanism of action for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. It also offers HBS-102, a melanin-concentrating hormone receptor 1 for MCH neurons. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020. Harmony Biosciences Holdings, Inc. was incorporated in 2017 and is headquartered in Plymouth Meeting, Pennsylvania.View Harmony Biosciences ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? 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There are 10 speakers on the call. Operator00:00:00Good morning, everyone. My name is Beau, 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 twenty twenty four Financial Results Conference Call. 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. Operator00:00:25Please be advised that today's conference is being recorded. Lastly, if you should require operator assistance, please press 0 at any time. I will now turn turn the call over to Mr. Brennan Doyle, Head of Investor Relations. Please go ahead, sir. Speaker 100:00:39Thank you, operator. Good morning, everyone, and thank you for joining us today as we review Harmony Biosciences' fourth quarter and full year twenty twenty four financial results and provide a business update. Before we start, I encourage everyone to go to the Investors 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 lifecycle, we believe non GAAP financial results better represent the underlying business performance. Our speakers on today's call are Doctor. Speaker 100:01:12Jeffrey Dano, President and CEO Jeffrey Dirks, Chief Commercial Officer Doctor. Kumar Badur, Chief Medical and Scientific Officer and Sandeep Kapadia, Chief Financial Officer and Chief 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 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. Speaker 100:01:47I would now like to turn the call over to our CEO, Doctor. Jeffrey Dato. Jeff? Speaker 200:01:53Thank you, Brandon. Good morning, everyone, and thank you for joining our call today. 2024 was a year of strong execution and meaningful progress for Harmony Biosciences. We continue to strengthen our leadership position in SleepWake, while advancing and expanding one of the most robust late stage CNS pipelines in the industry. Beginning at our Investor Day last October, we outlined a clear path toward becoming the leading CNS company focused on developing and delivering innovative treatments for patients with unmet medical needs. Speaker 200:02:32That path includes advancing our late stage pipeline to deliver one or more new product or indication launches each year over the coming years. We remain committed to delivering on our promise to patients while generating long term durable value creation for shareholders. In fact, our current pipeline, if successful, is poised to deliver over $3,000,000,000 in net revenue going forward. 2024 was also a year of exceptional growth in both our commercial business and in our pipeline through strategic acquisitions. Our net product revenues in 2024 were $714,700,000 representing 23% growth year over year. Speaker 200:03:19In Q4 alone, we generated $201,300,000 in net revenue. This momentum is reflective of the continued durable growth of Wakelet's in narcolepsy based on its broad clinical utility and differentiated profile as the first and only FDA approved once daily non scheduled treatment for narcolepsy and our proven commercial execution. We remain confident in WAKIX being $1,000,000,000 plus opportunity in narcolepsy alone and we are on our way to achieving that milestone well before Wakix LOE in 02/1930. On that topic, today we are also announcing our first generic settlement agreement with Novogen Pharma, resolving the patent infringement litigation related to Novogen's abbreviated new drug application for a generic version of pettolacent hydrochloride. As part of the agreement, Novogen will have a license to sell its generic product beginning January 2030 or earlier under certain circumstances. Speaker 200:04:25In addition, we are on track in pursuit of obtaining pediatric exclusivity for pottolacone, which if granted would add an additional six months of regulatory exclusivity. This settlement reinforces the strength and durability of Harmony's intellectual property portfolio. As you can see, we remain committed to vigorously defending our intellectual property estate. Commercial engine has allowed us to finance our growing pipeline from our balance sheet as a profitable self funding biotech company. Harmony was founded on our leadership in SleepWake and our pipeline is now made up of three orphan rare neurology franchises, each with potential peak sales opportunities of $1,000,000,000 to $2,000,000,000 each. Speaker 200:05:16Before turning to the opportunities ahead of us in 2025, I want to address the recent update on our supplemental new drug application for pettolacin and idiopathic hypersomnia or IH. While we recognized the challenges with this submission, given that the Phase III INTUNE study did not meet the primary endpoint during the four week randomized withdrawal phase, we made the decision to submit the sNDA for pitulsine and IH based on the following three factors. First, the overall benefit risk profile of pitulosin in IH based on the totality of the data second, the unmet medical need in IH based on limited treatment options And third, our deep commitment to the IH patient community. In fact, the Hypersomnia Foundation and more than six fifty members of the IH community signed a petition to the FDA requesting a review of the pitulosin sNDA file for IH, citing the burden of disease and significant lack of treatment options, especially ones that are non scheduled. While this outcome is not what we had hoped for, it is only a short term setback that in no way affects the progress we are making toward our strategic priorities. Speaker 200:06:39In fact, 2025 is shaping up to be a transformational year for Harmony. This is a pivotal moment in our growth story, one where we are advancing important late stage programs, poised to deliver key clinical milestones and reinforce our leadership in sleep wake and rare CNS disorders. Our long term vision has always been to extend our leadership in sleep wake through the development of pitulacint high dose or pitulacint HD and enhanced higher dose formulation of pituloscent designed to deliver an optimized PK profile and therapeutic benefits. Kumar will share more about our development plans for our next generation pituloscent formulations. But what I want you to take away is that this program is the result of patient focused drug development. Speaker 200:07:32These formulations are designed to build on the innovation of pitulacin as a first in class molecule with a novel mechanism of action, action while addressing some of the most common unmet needs in people living with narcolepsy and idiopathic hypersomnia. In addition to demonstrating enhanced efficacy for excessive daytime sleepiness, the Phase III registrational trials for pitotelstand HD, both set to initiate in Q4 twenty twenty five, will also evaluate the common symptom of fatigue in the narcolepsy trial and the very common and burdensome symptom of sleep inertia in the IH trial. With top line data anticipated in 2027 toward PDUFA dates for both narcolepsy and IH in 2028, along with a provisional patent extending to 02/1944, pitulisin HD is the foundation of our long term growth strategy and path toward durable long term value creation. Beyond sleep wake, 2025 will bring another major milestone with the top line data readout from our Phase three registrational trial of ZYN-two in fragile X syndrome, the RECONNECT study in the third quarter. This study was designed to confirm the positive findings from the pre specified analysis of patients with complete methylation in the Phase twothree CONNECT study. Speaker 200:09:06And if positive, could put us on a path toward bringing the first approved treatment for Fragile X Syndrome to patients and their families. Importantly, we possess global rights to ZYN-two, which provides us an opportunity to expand access worldwide if successful. And that is just the beginning. Kumar will share more details with you on our Fragile X program as well as the exciting work we are doing in 2025 to advance our innovative rare epilepsy franchise with EPX100, the most advanced five HT2 agonist clinical development program in the clinic. With registrational trials in both Tervais syndrome and Lennox Gastaut syndrome, we are building a rare epilepsy franchise with potential to have a meaningful impact on the lives of these patients with plans to go broader in the developmental and epileptic encephalopathy space. Speaker 200:10:09Based on our strong foundation of commercial success with Wakeix, we have been very busy over the past two years building out our pipeline and we are just getting started. The acquisitions we did were thoughtful and strategic, leading to our three orphan rare CNS franchises. And we remain actively engaged in identifying and evaluating additional opportunities that could expand our leadership in sleep wake, neurobehavioral disorders for rare epilepsies and other seizure disorders. With over $576,000,000 in cash and cash equivalents in the balance sheet, we are in a solid position to deploy our resources to expand our pipeline and create meaningful value for patients and shareholders alike. As you can see, these upcoming catalysts underscore why 2025 is shaping up to be a transformational year for Harmony. Speaker 200:11:07Harmony is a growth story built for long term success with a market leading sleepwake franchise, a robust late stage pipeline and the experience and strategic ability to navigate short term challenges that make us stronger and even more committed to our long term mission to develop and deliver innovative therapies for patients living with rare neurological diseases. When we deliver on our promise to patients, we generate long term durable value creation for our shareholders. Thank you. And I will now turn the call over to Jeffrey Dirks, our Chief Commercial Officer, to give you an update on our commercial performance. Jeff? Speaker 300:11:47Thanks, Jeff. Q4 and full year 2024 showed continued strength in our underlying business fundamentals and durable growth as we surpassed $700,000,000 in net sales and over 7,000 average patients on Wakeix. Net sales for the fourth quarter were $201,300,000 and full year 2024 net revenue was $714,700,000 a 23% increase from full year 2023. We continue to see strong double digit growth in net revenue for Wakeix heading into year six of our commercialization, demonstrating continual high interest of Wakeix in the narcolepsy market. The solid net sales performance in 2024 reaffirms our confidence in Wakeix representing a potential 1,000,000,000 plus opportunity in narcolepsy alone. Speaker 300:12:35For the fourth quarter of twenty twenty four, we saw continued growth in the average number of patients on Wakeix and in the Wakeix prescriber base, both facilitated by favorable market access as seen on Slide five. The average number of patients on Wakeix increased to approximately 7,100 in the fourth quarter. We are extremely pleased with the approximate 300 sequential increase in average patients on Wakeix from what we reported last quarter. We saw continued growth in pediatric narcolepsy prescriptions and prescribers in Q4, but consistent with Q3, the vast majority of our growth came from the adult narcolepsy, which constitutes approximately ninety five percent of the diagnosed narcolepsy opportunity. The growth in average patients in the fourth quarter was in line with our expectation and reaffirms our confidence in future growth with Wakeix. Speaker 300:13:24Fueling the growth in patient adds on Wakeix was the strength of the Wakeix prescriber base. We saw solid growth in the Wakeix prescriber base beyond OXIBATE REMS enrolled healthcare professionals, demonstrating that Wakeix continues to expand the branded writer segment of the market beyond the OXIBATE. We are now more than 50% penetrated in this segment of approximately 5,000 healthcare professionals at the end of the fourth quarter. Coupled with the growth we're seeing beyond the OXTABATE REMS enrolled healthcare professionals, we continue to see utilization of Wakeix among the approximately 4,000 OXTABATE REMS enrolled healthcare professionals, even with the availability of new and generic OXTABATE options. We are highly penetrated in the prescriber audience and see Wakeix being prescribed to additional narcolepsy patients each quarter in this segment. Speaker 300:14:11Wakeix provides a meaningfully differentiated product profile and one that offers broad clinical utility across the entire narcolepsy trading healthcare professional universe, allowing us to tap in to the full diagnosed narcolepsy patient opportunity of approximately 80,000 patients. Looking ahead for full year 2025, we expect continued growth in the underlying business fundamentals for Wakeix with net revenue guidance of $820,000,000 to $860,000,000 We anticipate a similar rhythm to our business as we've seen in traditional seasonal payer dynamic headwinds that impact the industry as a whole in the first quarter. Tailwinds coming out of Q1 into Q2 with stronger prescription demand. Typical seasonal headwinds in the third quarter was lower patient visits that are common for all products and diseases that are chronically managed and tailwinds in the fourth quarter with strong patient refill behavior as we close out the year. With Waitress on track to achieve $1,000,000,000 plus in narcolepsy alone and with a robust scalable commercial infrastructure we have built, we have the strong foundation to drive growth and value in our next generation pitulosan program. Speaker 300:15:19We are advancing both pitulosan gasser resistant or GR and pitulosan high dose or HD through the lens of patient centric drug development. With the goal of improving patient care with meaningful features and benefits and extending durable patient growth and revenues of the Bittulson franchise into the mid-2040s. Kumar will share more details on the HD and GR development programs. Preliminary market research that we conducted with healthcare professionals and payers with the HD target product profile showed early excitement and strong anticipated update by healthcare professionals and expected favorable market access coverage from payers. Additionally, our unique commercial model will be deployed to support the transition of the Potalasan franchise. Speaker 300:16:05In summary, WACUS continues to deliver strong growth heading into year six of our commercialization. The patient centric drug development approach to our Potalasan lifecycle management program strengthens our franchise and leadership position in SleepWake and is poised to deliver durable patient growth and significant revenues to the mid-2040s. I would like to now turn the call over to our Chief Medical and Scientific Officer, Kumar Badur, to discuss the advancement in our clinical development programs. Kumar? Speaker 400:16:34Thank you, Jeff. Good morning, everyone, and thank you for joining us today. In R and D, we continue to make good progress in advancing our pipeline across 13 development programs, eight different assets and three distinct financials focused on rare neurological indication with high unmet medical needs. We currently have four Phase III registrational trials ongoing in four distinct indications, and we will have six Phase III registrational trials by the end of the year. This makes our portfolio one of the robust late stage pipelines in the industry with the potential to deliver one or more new product or indication launches every year in the coming years. Speaker 400:17:19Our full clinical development pipeline is shown on Slide number eight, and the clinical development highlights are on Slide nine through Slide 13. Starting with our Phase three franchise. As we discussed recently, we received an RTF for IHSNDA. We are deeply disappointed with this outcome. The rationale that the FDA provided for the RTF was based on data from the randomized withdrawal phase of the Intune study. Speaker 400:17:51However, as we have discussed previously, the data from the open label phase showed that patients experienced improvements on the effort sleepiness scale that were about five times greater than what is recognized as clinically meaningful, and the majority of the patients in the long term extension study achieved normal levels of wakefulness and sustained this response beyond one year. This data, along with real world data from the physicians treating IH and the capacity of program, as well as the well established safety and tolerability profile of Matrix and its non skittered status made a strong benefit proposition for pitalopentine IH. This is why we submitted the sNDA for pitalopentine IH because it was the right thing to do for our patients. Our commitment to bring pitalopent for patients with idiopathic hyposmia remains unchanged. We are on track to initiate the Phase III registrational trial in idiopathic hyposmia in Q4 twenty twenty five with Pitovacin HD, an optimized and higher dose formulation, which is anticipated to provide larger efficacy for ADF and also target symptoms, such as sleep inertia, one of the core symptoms in patients with idiopathic hyposomnia. Speaker 400:19:16This double blind randomized placebo controlled parallel launch study is designed with input from the FDA and the anticipated to do for date for this program in 2028. We are also on track to initiate the pivotal Phase III registrational trial in nocolepsy with Fetomacent XT in Q4 twenty twenty five with the topic PDUFA in 2028. With the optimized and higher dose formulation, petrolazonext HD is anticipated to deliver rapid efficacy in excessive daytime sleepiness, the greatest unmet need in patients with narcolepsy and also target symptoms such as fatigue in narcolepsy for which there are no approved treatments. Moving on to Pitelofen GR program, this formulation is designed to address the GI comorbidity prevalent in almost eighty percent of patients with narcolepsy and designed to give the patients an ability to start at the therapeutic dose range with no titration. We are on track to initiate pivotal bioequivalence study this quarter, and the top line data is expected in Q3 'twenty five with anticipated to do for date in 2026. Speaker 400:20:36Promescent patents have been submitted for both pitofen GR and pidolofen HD with the potential for patent protection until 02/1944. Moving on to our orexin two receptor agonist program, BD1.15205, a potential best in class orexin II receptor agonist currently in preclinical phase. The in vitro pharmacology data demonstrated greater potency compared to all the other orexin II receptor agonists based on publicly disclosed data. The combination of high potency, excellent selectivity, potential for one third day dosing and robust preclinical data makes our orexin II receptor agonist a potentially best in class asset. We plan to present the comprehensive preclinical safety and efficacy data at the upcoming annual sleep meeting in June, and we are on track towards filing an IMPD in mid-twenty twenty five and initiating first in human study in the second half of this year. Speaker 400:21:44Moving on to our neurobehavioral front line. The next major catalyst in our portfolio is the top line data from the Phase III registrational trial of ZYN002 in Fragile X Syndrome, the VCONNECT study. Fragile X Syndrome is a rare genetic disorder caused by mutation in FMR1G on X chromosome, resulting in decreased or lack of FMR protein production that results in the dysregulation of the endocannabinoid system manifesting itself with intellectual impairment, developmental delays, and significant neurobehavioral symptoms. In fact, Fragile X syndrome is the most common inherited cause of intellectual impairment and autism spectrum disorders with a prevalence of approximately eighty thousand patients each in The U. S. Speaker 400:22:34And EU. ZYN002, a pharma physically manufactured 100% synthetic cannabidiol, is a patent protected, polyneasin enhanced gel that offers a unique treatment option by helping maintain the endocannabinoid homeostasis by interacting with CB1 receptors and treat the neurobehavioral symptoms. The transdermant route of administration offers significant benefits from a tolerability and safety perspective compared to oral administration of cannabidiol that results in significant nausea, vomiting, abdominal cough, and diarrhea. In addition, oral administration of cannabidiol can result in abnormal liver function tests because of the first pass metabolism, and that is not observed with CY-two. The ongoing Phase three registrational trial, the RECONNECT study, is based on the data and the learning from last Phase two, three CONNECT study. Speaker 400:23:39In a sense, we are attempting to replicate the strong efficacy signals that we observed in patients with complete methylation in the CONNECT study. The INCONNECT study, if positive, is expected to meet the registration requirements for both the FDA and the EMA, and we have global rights for B1-two. We are on track to report the top line data in Q3 twenty twenty five. Based on the pathophysiology of flagellaric syndrome, the mechanism of action of B1002, the clinical data from the CONNECT study and the RECONNECT study design, we have a high degree of conviction in the RECONNECT program and if approved, this will be the first and only approved treatment for any symptoms in patients with Fasolet Syndrome. We are also on track to initiate the Phase III registrational trial in 22q deletion syndrome in 2025. Speaker 400:24:4222q is another rare disorder with a prevalence of approximately eighty thousand patients each in The U. S. And Europe and with prominent neurobehavioral symptoms for which there are no approved treatments. Moving on to our epilepsy franchise. We have the most advanced development program in developmental and epileptic encephalopathy. Speaker 400:25:06We have two investigational candidates, EPX100, that's clamsol heterochloride, and EPX200, liquid locasarin, for the treatment of developmental and epileptic encephalopathies. EPS100 works to be a modulation of five eighty two serotonin receptors and enhances the serotonin tone. The serotonin mechanism of action is a validated mechanism of action in DE And EPX-one hundred also showed efficacy in several preclinical models for various other developmental and epileptic encephalopathies, suggesting a broad utility for EPX-one hundred in DEE. EPX-one hundred is administered in a liquid formulation with BID dosing, a simple dosing regimen that is especially meaningful for patients living with DEEs. We are currently recruiting globally for our Phase III registrational trial in TOWAY SYNTHROUGH, the ARKUS study, and we also initiated the global Phase III registrational trial in LCR, the LIGHT HUB study in the fourth quarter of last year. Speaker 400:26:16The top line data for both programs are anticipated in 2026. Our other investigational product in developmental and epileptic and topographies, EPX-two hundred, a liquid formulation of locaspirin, is in the pre IND phase. Overall, we are progressing our latest pipeline across our three distinct franchises. If successful, these programs could result in one or more new product or indication launches every year for the coming years. And more importantly, we found the potential to help hundreds of thousands of patients with rare neurological disorders for whom there are either no approved treatments or limited treatments that come with significant limitations in efficacy and or safety and tolerability. Speaker 400:27:07As always, 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 program. I will now turn the call over to our CFO, Sandeep Kapadia, for an update on our financial performance. Sandeep? Speaker 500:27:32Thank you, Kumar, and good morning, everyone. This morning, we issued our fourth quarter earnings release and filed our 10 K while we will find the details of our fourth quarter and full year 2024 financial and operating results. Our financial performance is also shown on Slides 14 through 16. We finished the year with great momentum across the business, delivering strong growth across several of our key metrics, setting us up for another successful year in 2025. We continue to be a profitable, cash generating company, able to fund the growth and advancement of our pipeline fully with the strength of our balance sheet. Speaker 500:28:16We delivered another year of double digit top line growth as we reported $714,700,000 in annual late age net revenue, while continuing to be profitable, cash generating biotech company. Our strong financial performance combined with a solid balance sheet, including approximately $576,000,000 in cash and cash equivalents, positions us well to continue advancing our industry leading pipeline along with driving continued commercialization of Waitix and Narcolepsy. For the fourth quarter of twenty twenty four, we reported net revenues of $201,300,000 as compared to $168,400,000 in the prior year quarter, representing year over year growth of 20% and our highest quarter to date. Performance in the quarter reflects the strong sustained underlying demand for Wicked. We also reported total operating expenses for the fourth quarter of ninety one point one million dollars compared to $85,100,000 dollars in the same quarter in 2023, representing a 7% increase. Speaker 500:29:29The growth was primarily driven by our expanding late stage pipeline along with investments for the commercialization of Wakeys and Norcolepsy. Non GAAP adjusted net income for the fourth quarter of twenty twenty four was $63,000,000 or $1.08 per diluted share compared to $42,800,000 or $0.73 per diluted share in the prior year quarter. We believe non GAAP adjusted net income better reflect the underlying business performance. Please see our press release for a reconciliation of GAAP to non GAAP results. We ended the fourth quarter with $576,100,000 of cash, cash equivalents and investments. Speaker 500:30:13The balance reflects robust cash generation $19,800,000 from operations in 2024, providing us with the financial flexibility to execute our growth strategy. Looking ahead to 2025, as we previously disclosed, our guidance for net revenues for 2025 is $820,000,000 to $860,000,000 We believe this guidance reflects the strong expectations for the year and demonstrates that we're approaching the $1,000,000,000 plus opportunity in Wake Tech and North Westfield alone. As a reminder, a comment on seasonality as we think about the phasing for revenues for the first quarter of twenty twenty five. We expect to see typical seasonal dynamics that the industry as a whole experiences each year in Q1. This includes higher gross domestic options due to insurance plan free sets and higher co pay obligation, along with potential for drawdown in trade inventory. Speaker 500:31:15With respect to expenses, we expect increased R and D investment as we continue to build our pipeline. We also expect to potentially incur $29,000,000 in R and D related milestone payments in 2025, including milestones for the completion of enrollment and positive top line in our ZYN002 Phase three program as well as started study in our orexin program. In summary, I'm pleased with our strong financial performance in 2024. We once again delivered another year of strong top line growth, maintained healthy operating margin, while continuing to generate cash. This positions us well as we enter 2025 with the potential for significant value creation through our catalyst risk pipeline. Speaker 500:32:04And with that, I'd like to turn the call back over to Jeff for his closing remarks. Jeff? Speaker 200:32:10Thank you, Sandeep, and thanks everyone for joining our call today. As you have heard, twenty twenty five is set up to be a transformational year for Harmony. With a market leading SleepWake franchise, a catalyst rich pipeline and a clear path for continued growth, we are in a strong position to execute on our vision of becoming the leading CNS company focused on delivering innovative treatments to patients with unmet needs. 2025 will be a pivotal moment in our long term growth strategy. I am proud of the progress that the Harmony team has made and we are well positioned to deliver on our promise to patients while also generating durable long term value creation for our shareholders. Speaker 200:32:58Thank you again. And I will now turn the call back over to the operator. Operator? Speaker 400:33:02Thank you, Doctor. Operator00:33:19We'll go first this morning to Charles Duncan at Cantor Fitzgerald. Speaker 200:33:24Hey, good morning, Todd, Jeff and team. Congrats on a nice fourth quarter patient adds for Wake X. I since I'm going to answer just one I guess, beyond the methylation rates, how do you feel about the range of weights in terms of the patients being enrolled or ages? And then finally, how is the open label extension going? What's been the rollover rate into that? Speaker 200:34:11Yes. Good morning, Charles. And thanks to your question on CYN-two and the ongoing Phase three Reconnect trial. Kumar, more color on Charles' question. Speaker 400:34:21Yes. Hey, good morning, Charles. Thanks for the question. We are very pleased with the way the trial is ongoing, Charles. We are on track for top line data in the third quarter of this year. Speaker 400:34:34The primary endpoint is in patients with complete methylation, but we are also enrolling a nominal number of patients who also have partial methylation. If the primary endpoint endpoint in patients with complete methylation is positive and if we see a strong signal in patients with partial methylation, there is an opportunity for a broader label. In terms of your question in terms of ACE, we are enrolling patients in the ACE group of three to thirty years. And in terms of weight, the weight is variable, obviously, depending on many factors, including the age. And one of the things that we did in RECONNECT study is went higher on the dose in patients who weigh more than fifty kilogram. Speaker 400:35:22The dose is seven fifty milligram per day administered in two equally divided doses at three seventy five PIP. In the open label or rather long term extension study, a good proportion of patients are rolling over into long term extension study, and we have discussed this in the past. Currently, if you look at all the way back to the patients who enrolled in the very first Faso X Syndrome study, some of these patients are exposed to thirty one thousand and two for over eight years now. This level of persistency is unprecedented in neuropsychiatric trials. It just speaks to the durable efficacy or effectiveness of B1002 in this patient population. Speaker 400:36:09Hope that answers all of your questions. I know it was a multi part question. We did not want to miss anything. Thank you. Speaker 200:36:18Super, that's helpful. Looking forward to the data. Speaker 100:36:21Thank you, Charles. Operator00:36:25Thank you. We go next now to Francois Brisebois at Oppenheimer. Speaker 600:36:32Hi. This is John Gregory Dean on Speaker 200:36:34for Frank Bruzel at Oppenheimer. Thank you for taking our questions. I was wondering, why should we feel comfortable that Pitolifin HD has a higher likelihood of success in IH patients? John, thanks for your question. I think we have data with regards to and Kumar can expand showing dose response and exposure response with the Tullison over the years in the clinical trials that have been done. Speaker 400:37:03Frank, good morning. Thanks for the question. Look, I would like to answer this question in two parts. First and foremost is efficacy evidence for efficacy of pitollosin in patients with idiopathic hyposonin in general. The INTUNE study clearly showed the magnitude of efficacy in the open label part quite gaseous compared to what is recognized as clinically meaningful. Speaker 400:37:30In the long term extension study, patients continue to derive benefit one year out and they were within the normal range for wakefulness. And moving on to pitulacint HD formulation, It's an optimized formulation of pituloscent with an optimized PK profile and the higher dose, and there is a body of evidence from all of our clinical trials that show clear dose response and exposure response. So based on all of this data, we have high confidence that pidolacent HD will not just be efficacious in patients with idiopathic hypostompsia, but we will see a larger magnitude of efficacy in excess data and sleepiness and also impact symptoms like sleep inertia, which is a co symptomia for which there are no approved treatment. And finally, the trial design, Frank, the upcoming study, which we plan to initiate in the fourth quarter of twenty twenty five, will be a double blind placebo controlled randomized parallel ARM study. And with random as we told study design, there are some challenges on how to interpret the data, and the traditional parallel on design study will be much more helpful in interpretation of the data. Speaker 400:38:49Thank you. Operator00:38:51Thank you. We go next now to David Amsellem at Piper Sandler. Speaker 300:39:00Hey, thanks. So regarding pitollisent HD, I want to drill down in your assumption for twenty twenty eight PDUFA. There's obviously a number of trials in NT1 and NT2 and eventually IH for various orexin agonists. So can you talk to how you're feeling about pace of enrollment of your pitollisense HD trials and how confident you are in your 2028 assumptions given that you're competing for patients? Thanks. Speaker 200:39:35Yes. Good morning, David. No, great question. I think Kumar can give you sort of our assumptions and the plan on the development program. Speaker 400:39:43Hey, good morning, David. Thanks for the question. Yes, there is competition. Many clinical trials are ongoing. But if you look and compare and contrast to clinical trials in narcolepsy with idiopathic hypersomnia. Speaker 400:39:57There are relatively less number of clinical trials in idiopathic hypersomnia. And the good thing is based on the data from the INTUNE study, we have already showed a robust signal and that will definitely help with the recruitment of pittolifent HD clinical trial compared to other clinical trials that are ongoing or that are coming up. And also this is a global clinical trial. We just completed idiopathic hyposcomia clinical trial, so we have established relationship with the site. We know these sites very well. Speaker 400:40:31Our long term extension study is still ongoing, so we have continued relationship with these sites. All of these things will factor into on how we will recruit for our upcoming Phase III clinical trial with pitollosimetry. We are confident in the timeline. Speaker 300:40:47What about competition for patients with narcolepsy? Speaker 400:40:52Yes. Good question, David. We are also on track to commence Phase three study in narcolepsy with Pitolifent HD in the fourth quarter and anticipated to do for date in 2028. Once again, I would like to switch back to we know this space. We have been working with these investigators for a number of years. Speaker 400:41:16We know the sites and also this is going to be a global clinical trial. Our partner BioPlus, they are very active in Europe. So based on everything that we know about the disease condition, the clinical trial sites, the investigators, we feel confident with our timelines. Speaker 200:41:32Yes. Stephen, I would also add, I think we have plans with regard to other regions globally where we're able to sort of access in terms of accelerating that trial, having access to patients and being able to hit our timelines. Speaker 400:41:48All right. Thank you. Thanks, David. Operator00:41:53Thank you. We'll go next now to Gregg Sivanovich at Mizuho Securities. Speaker 700:42:00Good morning. Congrats on the quarter and the year. And thanks for taking my questions. I just want to first congratulate you Speaker 400:42:06on the Speaker 700:42:06patent settlement that you announced this morning. I was wondering if you can comment what the status is of the remaining patent challenges, if you could remind us how many other patent challenges there are? And also I believe on in your third quarter Q, there were some upcoming dates potentially even starting next month in terms of litigation. So if you could just remind us on timelines with the litigation and potential kind of next steps there? Thank you. Speaker 200:42:37Yes, sure, Greg. Yes, good morning. So I think that with regards to the ongoing process here, so obviously this morning we announced the first generic settlement agreement with Noligan Pharma and it's one of the seven ANDA filers. With regards to the next steps, I think it's important to remember that both the regulatory and legal processes continue forward in parallel with regard to the ANDA process. So while we'll see the ongoing process, I think the Markman hearing, as we mentioned, is scheduled for March and that sets up the claims construct followed by the trial which will take place in 2026. Speaker 200:43:27I think we are beyond the first settlement. We're actively engaged with the other end of filers, but obviously we can't comment on ongoing litigation matters and we'll provide updates as appropriate. But I think what is important to remember and in terms of sharing the news that the Novogen settlement really reinforces the strength and durability of Harmony's intellectual property. And I think it also shows how we're committed to vigorously defend the intellectual property on the state. And we'll provide updates as appropriate going forward on the rest of the Andel litigation process. Speaker 700:44:12Okay. Thank you. Operator00:44:16We'll go next now to Amy Fadia at Needham. Speaker 800:44:20Hi, good morning. Thanks for taking my question. I've got one question and a follow-up. Firstly, just on ZYNOL2 with the data coming up later this year, it's certainly a focus for investors. Could you sort of frame what would be success for the trial in terms of the endpoints and how much of a clinically meaningful change you would like to see? Speaker 800:44:46And can you remind us if the FDA would accept the first sort of Phase twothree study, the CONNECT study as part of the filing package sort of with the two Phase three trials that are required? And then just separately on the idiopathic hypersomnia study for the high dose, maybe aside from the change in the trial design, what else do you think you need to do in terms of perhaps the duration for which you study the patients etcetera to really sort of tease out the benefit of the dolosat and IH? Thank you. Speaker 200:45:25Yes. Good morning, Ami. Thanks for your questions. Thanks for your interest in CYN002. And I think Kumar can address that, so you understand what success would look like on that Phase III trial. Speaker 200:45:37Kumar? Hey, good morning, Gomi. Thanks for the question. ZYN-two is our next major catalyst Speaker 400:45:45top line data readout scheduled for third quarter of this year. Regarding your question about what a successful trial would look like, a successful outcome by demonstrating a statistically significant and clinically meaningful outcome on the primary endpoint, which is the social avoidance subscale in patients with complete methylation. In essence, Ami, what we are trying to do in RECONNECT study is replicating the positive findings that we saw in the CONNECT study in patients with complete methylation on social avoidance subscale in this particular patient population. In terms of your question about will the FDA accept the Phase II, III CONNECT study data, yes, they will because at the end of the day, this will contribute to the totality of evidence, not just from an efficacy perspective but also from a safety and tolerability perspective and also the extensive data that we continue to generate from the long term extension study. Because Fasolic Syndrome is a rare condition, what we need is only one adequately and well controlled study that shows statistical significance. Speaker 400:47:06The data from the CONNECT study will be supportive data in our NDA package if the study is positive. Finally, in terms of your question about idiopathic hypostomy epitheliosent HD and the trial design, It's we have a good idea, Ami, in terms of the duration of the study and the endpoints, again based on the INTUNE study. The data from the INTUNE study granted that the primary endpoint was not statistically significant in the randomized LUTAL period of the study, the data from the open label long term extension study gave us a pretty good idea in terms of what to expect with pitalosin in general and especially with pitalosin HD, which is an optimized and a higher dose formulation. One last thing which I actually wish to say is you asked about the clinical meaningfulness. In the social avoidance subscale for patients with Fragile X syndrome, a change in about three points from baseline is considered as clinically meaningful. Speaker 400:48:19Hope I answered all of your questions. Thanks, Ami. Speaker 800:48:23That was very helpful. Thank you. Speaker 200:48:25Thanks, Ami. Operator00:48:28We'll go next now to David Wong at Deutsche Bank. Speaker 900:48:33Hi there. Congrats on the quarter and taking my questions. So I had two here. So the first one just with the Toulasan HD, could you elaborate a little bit more about the rationale and approach to look at AT and sleep inertia in narcolepsy and IH respectively? And do you plan to, I guess, pursue these as co primary endpoints? Speaker 900:48:56Are you looking for labeled indications? And how does that sort of enhance the overall commercial opportunity? And then also on your orexin receptor agonist, I was wondering about how you're thinking about the first in human study there and would you do what some of your peers have done in terms of looking at sleep deprived healthy volunteers? Thanks a lot. Speaker 200:49:21Thanks, David. Let me just start and then Kumar can expand. With regards to sleep inertia as a key symptom in patients with IH, in addition to EDS and also in pursuit of a differentiated label, sleep inertia, somewhat pathognomonic, if you will, like cataplexy is for narcolepsy. So that is the rationale behind that. And it's also there are scales that are fit for purpose that can address that. Speaker 200:49:54In terms of the other thinking around how we'll capture that in the development program, Kumar? Speaker 400:50:00Yes. Good morning, David. Thanks for the question. So in terms of fleet inertia, David, again, we generated a lot of data from the INTUNE study, and most of it was discussed at our investors' meeting last year. The sleep inertia questionnaire that we utilized as one of the endpoints in the INTUNE study showed a pretty good response and the response was sustained beyond thirteen months in vast majority of the patients. Speaker 400:50:29So we know pidolacin works in sleep inertia and we know we can capture that improvement via sleep inertia questionnaires. In terms of your question on how do we want the label of the goal is always to get it in the label differentiated label, which is relevant to HD in patients with idiopathic hypersomnia. Regarding your question on Orexin receptor, Agonist, based on the preclinical data, the potency, the selectivity, potential for one hundred and thirty eight dosing, novel chemical structures, good preclinical safety and efficacy data, we believe this is potentially a best in class polyacrylam receptor agonist. We are on track for IMPD submission in middle of twenty twenty five this year, and we will also first in human studies in the second half of this year. In terms of how we do that, the goal is to have a nimble and an accelerated clinical development program to make sure that we have the right data sets as we move from one phase of development to the next. Speaker 400:51:36We will definitely leverage some of the lessons from other development programs, which are slightly ahead of us. In terms of details, whether healthy volunteers, key deployed healthy volunteers directly into patients, that's something that we will disclose in due course of time as we approach those clinical trials. Thanks, Kumar. Operator00:52:00Thank you. We'll go next now to Ash Verma at UBS. Speaker 800:52:05Great. Thanks for taking my question. So I wanted to ask about the orexin pipeline asset. There's some emerging literature that is pointing that agonizing orexin can accelerate Alzheimer's pathology and this has been shown in preclinical and clinical models now. So I wanted to understand like how do you think about this as an effect on your program and would that be higher at higher doses? Speaker 800:52:30And lastly, is that something that would be on the radar of the FDA? Thanks. Speaker 400:52:36Hey, Ash. Good morning and thanks for the question. Ash, this was something that used to be discussed many years ago because in some of the preclinical experiments, there was some increase in TAL proteins in the cerebrospinal fluid in the preclinical experiments. That had more to do with the Orexin one receptor agonist. But really, what eventually was concluded is it's actually the insomnia and the sleep deprivation that increase the TOW levels rather than anything to do with the orexin receptor antagonist or antagonist itself. Speaker 400:53:23So this is not something that we have seen in any of our preclinical models. And also this is not something that has been seen in some of the ongoing clinical trials and some of who actually have long term data, for example, in the TASK nine ninety four study that was discontinued because of safety issues. So for now, that is not a concern. I don't think there is any level of evidence to suggest any increased risk of cognitive impairment with orexin two receptor agonists. Thanks, Kumar. Operator00:54:03Thank you. We'll go next now to Patrick Trucchio at H. C. Wainwright. Speaker 700:54:08Good morning and thank Speaker 300:54:08you for taking my question. This is Luis Santos in for Patrick. On the PULASENCE GR, the gastric resistant formulation, the BioCabulin study is expected to read out this third quarter. What key data points do you expect would support the regulatory submission? And is that regulatory submission still on track for later this year, beginning of next year for PDUFA date next year? Speaker 300:54:34Thank you. Speaker 200:54:36Thanks, Elyse, for your question. Kumar? Good morning. Thanks for Speaker 400:54:41the question. We are on schedule to initiate the pivotal bioequivalence study this quarter and the top line data we expect to be available in the third quarter. This is the standard pivotal bioequivalence study where we aim to show bioequivalence, which is 80% to 125% of the range for within the 90% confidence interval for Cmax and AUC. In terms of the PDUFA, we are on track for a PDUFA date in 2026. Thanks, Kumar. Operator00:55:25Thank you. We go next now to Jason Gerberry at Bank of America. Speaker 600:55:31Hey guys, thanks for taking my questions. I wanted to hit on two topics today. This is Bhagwan on for Jason. The first is regarding the RFP letter for pitollosant in NIH. Can you elaborate on the specific concerns raised by the FDA regarding the INTUNE study data? Speaker 600:55:48And how does this inform the Phase three trial for pitollosant HD, which is expected to start in 4K twenty twenty five. Maybe if you can provide some more details on the planned trial design, including the planned duration of treatment, trying to get at how this trial addressed the limitations of the INFINED study and provide more robust evidence of efficacy? And then my second question is with regards to the next gen etolizant. Can you remind us what evidence supports the hypothesis that higher doses of etolizant provide greater wake promoting efficacy without introducing a saturation effect on H3 receptor inverse agonism? Thank you. Speaker 200:56:29Yes. So, yes, let me address your first question with regards to the RTF. So I think that basically the RTF was based on the FDA's Speaker 400:56:43review Speaker 200:56:45was on the primary endpoint that was not statistically significant when they were looking at the SMDA submission, a very traditional sort of conservative approach to the totality of the evidence and the robustness of the signal that was seen. But I think as we shared, really the focus is on pituitl in HD and the longer term opportunity there with regards to the plan to pursue a Phase III trial that we initiate in the quarter with a randomized prospective parallel group design, which was in concurrence with the agency in terms of the trial design. And then then all of the clinical trials with the TOLFSEN and narcolepsy utilizing that design and demonstrating the strong efficacy on excessive daytime sleepiness. So that is the focus there as we go forward with regards to the IH program for Pulsin HD. Speaker 400:57:51Kumar? Yes. Hey, good morning, Pawan. Thanks for the question. Pawan, in terms of pepidolifent HD program, as mentioned earlier, we are on track to initiate the study in Q4 of this year and with a potential PDUFA date in 2028. Speaker 400:58:07In terms of the evidence itself, there is a body of evidence from all of our clinical trials that show a dose response and exposure response with pittolacide. The original trial, original pivotal nocollicity trials that were conducted by our partner Bio Brazil many, many years ago employed a dose to effect dosing strategy. Therefore, some of the higher doses were never really interrogated. So here, we have an opportunity to do that with an optimized formulation at a higher dose and capture the largest efficacy that we anticipate with the higher dose based on the data that we have. We will be doing this without compromising on the safety or tolerability of the tolerability associated with petolacent. Speaker 400:59:03We disclosed data where we did a Phase 1b study where petolacent was administered up to one hundred and eighty milligrams in repeat dose study, and the safety and tolerability was consistent with the established safety and tolerability profile of pedomasolact. So a really nice opportunity to generate efficacy and safety data in narcolepsy, also targeting fatigue in idiopathic hypersomnia, also targeting sleep inertia and an opportunity to have a differentiated label in both of these indications. Thank you. Thanks, Kumar. Operator00:59:46Thank you. And there are no further questions today. Doctor. Dana, I'd like to turn things back to you, sir, for any closing comments. Speaker 200:59:52Yes. Thank you, Bo. And thanks, everyone, for your interest in Harmony Biosciences and for joining our call today. And I wish everyone have a great rest of your day. Thank you. Operator01:00:03Thank you very much, Anthony. Again, ladies and gentlemen, this does conclude Harmony Biosciences' fourth quarter and full year twenty twenty four financial results conference call. You may now disconnect your line and have a wonderful day. Goodbye.Read morePowered by