On March 28, 2023, before the market opened, market analyst Scorpion Capital published a report on Harmony Biosciences. The report alleged, among other things, that Harmony’s drug, Wakix (pitolisant), is unsafe and causes heart-related issues (including sudden cardiac death) to occur in patients who are otherwise healthy. The report further alleged that, to obtain approval for Wakix from the United States Food & Drug Administration (“FDA”), Harmony Biosciences obtained approval in foreign nations with allegedly lax drug safety controls, such as Russia, before tricking the FDA into approving the drug based on the prior approvals. The report also alleged that the company engaged in kickback schemes to pay physicians to use its drugs, has a sham patent portfolio, and engages in false advertising.
On this news, Harmony Bioscience’s stock price fell as much as $11.34 per share, or 27.33%, in intraday trading.