0001558370-22-011556 | 10-Q | XBRL Viewer | Harmony Biosciences Holdings INC

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-39450
Entity Registrant Name	HARMONY BIOSCIENCES HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2279923
Entity Address, Address Line One	630 W.
Entity Address, Address Line Two	Germantown Pike
Entity Address, Address Line Three	Suite 215
Entity Address, City or Town	Plymouth Meeting
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19462
City Area Code	484
Local Phone Number	539-9800
Title of 12(b) Security	Common Stock, par value $0.00001 value per share
Trading Symbol	HRMY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,161,397
Entity Central Index Key	0001802665
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 236,533	$ 234,309
Investments, short-term	17,638
Trade receivables, net	49,822	34,843
Inventory, net	4,208	4,432
Prepaid expenses	10,827	7,637
Other current assets	3,674	3,218
Total current assets	322,702	284,439
NONCURRENT ASSETS:
Property and equipment, net	695	820
Restricted cash	750	750
Investments, long-term	4,747
Intangible assets, net	172,876	143,919
Other noncurrent assets	3,264	3,515
Total noncurrent assets	182,332	149,004
TOTAL ASSETS	505,034	433,443
CURRENT LIABILITIES:
Trade payables	6,661	1,001
Accrued compensation	7,213	9,165
Accrued expenses	45,626	40,249
Current portion of long-term debt	2,000	2,000
Other current liabilities	4,264	1,360
Total current liabilities	65,764	53,775
NONCURRENT LIABILITIES:
Long-term debt, net	189,807	189,984
Other noncurrent liabilities	2,930	3,177
Total noncurrent liabilities	192,737	193,161
TOTAL LIABILITIES	258,501	246,936
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Common stock-$0.00001 par value; 500,000,000 shares authorized at June 30, 2022 and December 31, 2021, respectively; 59,117,749 shares and 58,825,769 issued and outstanding at June 30, 2022 and December 31, 2021, respectively	1	1
Additional paid in capital	655,143	640,104
Accumulated other comprehensive income (loss)	(29)
Accumulated deficit	(408,582)	(453,598)
TOTAL STOCKHOLDERS' EQUITY	246,533	186,507
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 505,034	$ 433,443

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	59,117,749	58,825,769
Common stock, shares outstanding	59,117,749	58,825,769

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net product revenues	$ 107,028	$ 73,821	$ 192,341	$ 133,495
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	Sales-based, Trademark and Tiered Royalties	Sales-based, Trademark and Tiered Royalties	Sales-based, Trademark and Tiered Royalties	Sales-based, Trademark and Tiered Royalties
Cost of product sold	$ 18,921	$ 12,687	$ 33,637	$ 23,097
Cost, Product and Service [Extensible Enumeration]	Sales-based, Trademark and Tiered Royalties	Sales-based, Trademark and Tiered Royalties	Sales-based, Trademark and Tiered Royalties	Sales-based, Trademark and Tiered Royalties
Gross profit	$ 88,107	$ 61,134	$ 158,704	$ 110,398
Operating expenses:
Research and development	12,668	6,498	20,246	11,177
Sales and marketing	20,160	17,022	37,743	32,529
General and administrative	22,163	14,302	40,043	28,848
Total operating expenses	54,991	37,822	98,032	72,554
Operating income	33,116	23,312	60,672	37,844
Other expense, net	42	4	40	(15)
Interest expense, net	(3,927)	(7,227)	(8,096)	(14,354)
Income before income taxes	29,231	16,089	52,616	23,475
Income tax expense	(5,700)	(1,972)	(7,600)	(1,972)
Net income	23,531	14,117	45,016	21,503
Unrealized loss on investments	(29)		(29)
Comprehensive income	$ 23,502	$ 14,117	$ 44,987	$ 21,503
EARNINGS PER SHARE:
Basic	$ 0.40	$ 0.25	$ 0.76	$ 0.38
Diluted	$ 0.39	$ 0.24	$ 0.74	$ 0.37
Weighted average number of shares of common stock - basic	59,063,358	56,940,840	58,986,370	56,916,282
Weighted average number of shares of common stock - diluted	60,922,672	58,592,876	60,759,026	58,635,195

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated other comprehensive income (loss )	Accumulated Deficit	Total
Beginning balance at Dec. 31, 2020	$ 1	$ 585,374		$ (488,195)	$ 97,180
Beginning balance, shares at Dec. 31, 2020	56,890,569
Net income				21,503	21,503
Exercise of stock options		660			660
Exercise of stock options, Shares	109,570
Stock-based compensation		7,208			7,208
Ending balance at Jun. 30, 2021	$ 1	593,242		(466,692)	126,551
Ending balance, shares at Jun. 30, 2021	57,000,139
Beginning balance at Mar. 31, 2021	$ 1	588,687		(480,809)	107,879
Beginning balance, shares at Mar. 31, 2021	56,892,406
Net income				14,117	14,117
Exercise of stock options		648			648
Exercise of stock options, Shares	107,733
Stock-based compensation		3,907			3,907
Ending balance at Jun. 30, 2021	$ 1	593,242		(466,692)	126,551
Ending balance, shares at Jun. 30, 2021	57,000,139
Beginning balance at Dec. 31, 2021	$ 1	640,104		(453,598)	186,507
Beginning balance, shares at Dec. 31, 2021	58,825,769
Net income				45,016	45,016
Unrealized loss on investments			$ (29)		(29)
Exercise of stock options		3,133			$ 3,133
Exercise of stock options, Shares	291,980				278,305
Stock-based compensation		11,906			$ 11,906
Ending balance at Jun. 30, 2022	$ 1	655,143	(29)	(408,582)	246,533
Ending balance, shares at Jun. 30, 2022	59,117,749
Beginning balance at Mar. 31, 2022	$ 1	646,615		(432,113)	214,503
Beginning balance, shares at Mar. 31, 2022	59,030,148
Net income				23,531	23,531
Unrealized loss on investments			(29)		(29)
Exercise of stock options		1,250			1,250
Exercise of stock options, Shares	87,601
Stock-based compensation		7,278			7,278
Ending balance at Jun. 30, 2022	$ 1	$ 655,143	$ (29)	$ (408,582)	$ 246,533
Ending balance, shares at Jun. 30, 2022	59,117,749

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 45,016	$ 21,503
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	211	200
Intangible amortization	11,043	9,208
Stock-based and employee stock purchase compensation expense	11,906	7,208
Stock appreciation rights market adjustment	361	(130)
Debt issuance costs amortization	823	1,361
Other non-cash expenses	770
Change in operating assets and liabilities:
Trade receivables	(14,979)	(9,019)
Inventory	224	(1,128)
Prepaid expenses and other assets	(3,707)	(622)
Trade payables	5,660	(550)
Accrued expenses and other current liabilities	5,407	2,606
Other non-current liabilities	(152)	(37)
Net cash provided by operating activities	62,583	30,600
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities	(22,406)
Purchase of property and equipment	(86)	(205)
Milestone payments	(40,000)	(100,000)
Net cash used in investing activities	(62,492)	(100,205)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayment of long term debt	(1,000)
Proceeds from exercised options	3,133	660
Net cash provided by financing activities	2,133	660
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	2,224	(68,945)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH-Beginning of period	235,059	229,381
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH-End of period	237,283	160,436
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest	$ 7,524	$ 13,092

Organization and Description of Business

6 Months Ended

Jun. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

The Company

Harmony Biosciences Holdings, Inc., and its consolidated subsidiary (the “Company”) was founded in July 2017 as Harmony Biosciences II, LLC, a Delaware limited liability company. The Company converted to a Delaware corporation named Harmony Biosciences II, Inc. in September 2017 and, in February 2020, the Company changed its name to Harmony Biosciences Holdings, Inc. The Company’s operations are conducted in its wholly owned subsidiary, Harmony Biosciences, LLC (“Harmony”), which was formed in May 2017. The Company is a commercial-stage pharmaceutical company focused on developing and commercializing innovative therapies for patients living with rare neurological diseases as well as patients living with other neurological diseases who have unmet medical needs. The Company is headquartered in Plymouth Meeting, Pennsylvania.

Initial Public Offering

In August 2020, the Company completed its initial public offering (“IPO”) of common stock, in which it sold 6,151,162 shares, including 802,325 shares pursuant to the underwriters’ over-allotment option. The shares were sold at a price of $24.00 per share for net proceeds of approximately $135,435, after deducting underwriting discounts and commissions and offering expenses of approximately $12,193 payable by the Company. Upon the closing of the IPO, all outstanding shares of the Company’s convertible preferred stock were automatically converted into shares of common stock and the accrued dividend payable to holders of the convertible preferred stock was paid out in shares of common stock, resulting in a total of 42,926,630 shares of common stock being issued to former holders of the Company’s convertible preferred stock. Warrants exercisable for convertible preferred stock were automatically converted into warrants exercisable for a total of 410,239 shares of common stock.

Liquidity and Capital Resources

6 Months Ended

Jun. 30, 2022

Liquidity And Capital Resources [Abstract]

Liquidity and Capital Resources

2. LIQUIDITY AND CAPITAL RESOURCES

The unaudited condensed consolidated financial statements have been prepared as though the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of $408,582 and $453,598, as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, the Company had cash and cash equivalents of $236,533.

The Company believes that its existing cash and cash equivalents on hand as of June 30, 2022, as well as additional cash generated from operating and financing activities will meet its operational liquidity needs and fund its planned investing activities for the next twelve months from the date of issuance of these unaudited condensed consolidated financial statements.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated balance sheet as of June 30, 2022, the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, and the unaudited condensed consolidated statements

of operations and comprehensive income and the unaudited condensed consolidated statements of shareholders’ equity for the three and six months ended June 30, 2022 and 2021, are unaudited. The balance sheet as of June 30, 2022 was derived from audited financial statements as of and for the year ended December 31, 2021. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements as of and for the year ended December 31, 2021, and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2022, and the results of its operations and its cash flows for the six months ended June 30, 2022 and 2021. The unaudited condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted under the SEC’s rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

The Company has updated certain prior period disclosures within Note 11 in order to conform with current period presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the unaudited condensed consolidated financial statements, including the notes thereto, and elsewhere in this report. Actual results may differ significantly from estimates, which include rebates due pursuant to commercial and government contracts, accrued research and development expenses, stock-based compensation expense and income taxes.

Uncertainties related to the magnitude and duration of COVID-19, the extent to which it will impact our future financial results, worldwide macroeconomic conditions including interest rates, employment rates, consumer spending and health insurance coverage, the speed of the anticipated recovery and governmental and business reactions to the pandemic have increased the complexity of developing estimates and assumptions used in the preparation of the unaudited condensed consolidated financial statements, including the carrying amounts of long-lived assets, and the intangible asset. Actual results may differ significantly from our estimates as a result of COVID-19.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents and restricted cash consist of cash and, if applicable, highly liquid investments with an original maturity of three months or less when purchased, including investments in Money Market Funds and debt securities that approximate fair value. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that equal the amount reflected in the statements of cash flows.


	As of
	June 30,		December 31,
	2022		2021
Cash and cash equivalents	$	236,533	$	234,309
Restricted cash		750		750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$	237,283	$	235,059

Restricted cash includes amounts required to be held as a security deposit in the form of letters of credit for the Company’s credit card program and the fleet program.

Investments

The Company’s investments consist of debt securities that are classified as available-for-sale. The short-term and long-term investments are carried at fair value and unrealized gains and losses are recorded as a component of accumulated comprehensive income in stockholders’ equity. The amortization of premiums and accretion of discounts adjust the carrying value of investments and are recorded in interest expense, net, on the unaudited condensed consolidated statements of operations and comprehensive income. Interest income and realized gains and losses, if any, are also recorded in interest expense, net, on the unaudited condensed consolidated statement of operations and comprehensive income. Realized gains and losses that result from the sale of investments are determined on a specific identification basis.

At each reporting period, the Company reviews any unrealized losses position to determine if the decline in the fair value of the underlying investments is a result of credit losses or other factors. If the assessment indicates that a credit loss exists, any impairment is recognized as an allowance for credit losses in our consolidated statement of operations.

Concentrations of Risk

Substantially all of the Company’s cash and money market funds are held in two financial institutions. Due to their size, the Company believes these financial institutions represent minimal credit risk. Deposits may exceed the amount of insurance provided on such deposits by the Federal Deposit Insurance Corporation for U.S. institutions. The Company has not experienced any losses on its deposits of cash and cash equivalents. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.

The Company is also subject to credit risk from its trade receivables related to its product sales. The Company extends credit to specialty pharmaceutical distribution companies within the United States. Customer creditworthiness is monitored and collateral is not required. Historically, the Company has not experienced credit losses on its accounts receivable. The Company monitors its exposure within accounts receivable and would record a reserve against uncollectible accounts receivable if necessary As of June 30, 2022, three customers accounted for 100% of gross accounts receivable; Caremark LLC (“CVS Caremark”), which accounted for 38% of gross accounts receivable; PANTHERx Specialty Pharmacy LLC (“Pantherx”, which accounted for 34% of gross accounts receivable: and, Accredo Health Group, Inc. (“Accredo”), which accounted for 28% of gross accounts receivable. As of December 31, 2021, three customers accounted for 100% of gross accounts receivable; Accredo, which accounted for 40% of gross accounts receivable; Pantherx, which accounted for 31% of gross accounts receivable; and CVS Caremark, which accounted for 29% of gross accounts receivable.

For the six months ended June 30, 2022, three customers accounted for 100% of gross product revenues; CVS Caremark accounted for 39% of gross product revenues; Pantherx accounted for 32% of gross product revenues; and Accredo accounted for 29% of gross product revenues. For the six months ended June 30, 2021 three customers accounted for 100% of gross product revenues; CVS Caremark accounted for 37% of gross product revenues; Pantherx accounted for 35% of gross product revenues; and Accredo accounted for 28% of gross product revenues.

The Company depends on a single source supplier for its product and active pharmaceutical ingredient.

Recently Issued Accounting Pronouncements

ASU 2020-04, Reference Rate Reform (Topic 848). In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides guidance related to reference rate reform. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative

reference rates. The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference rates but does not expect a significant impact to its condensed consolidated financial statements.

Investments

6 Months Ended

Jun. 30, 2022

Investments

Investments

4. INVESTMENTS

The carrying value and amortized cost of the Company’s available-for-sale debt securities, summarized by major security type of security, consisted of the following:


	June 30, 2022
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	959	1	(1)	$	959
Corporate debt securities		14,344	3	(18)		14,329
U.S. government securities		2,354	1	(5)		2,350
Total short-term investments	$	17,657	5	(24)	$	17,638

Long-term:
Corporate debt securities	$	4,503	1	(11)	$	4,493
U.S. government securities		254	—	—		254
Total long-term investments	$	4,757	1	(11)	$	4,747

The Company classifies investments with an original maturity of less than one year as current and investments with an original maturity date of greater than one year as noncurrent on its unaudited condensed consolidated balance sheet. The investments classified as noncurrent have maturity dates ranging from 1-2 years.

Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Measurements

Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

The Company’s unaudited condensed consolidated financial statements include cash, cash equivalents, restricted cash, accounts payable, and accrued liabilities, all of which are short term in nature and, accordingly, approximate fair value.

It is the Company’s policy, in general, to measure non-financial assets and liabilities at fair value on a nonrecurring basis. The instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (such as evidence of impairment), which, if material, are disclosed in the accompanying footnotes.

The Company measures certain assets and liabilities at fair value based on the fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels based on the source of inputs as follows:

Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities.

Level 3—Valuations based on unobservable inputs and models that are supported by little or no market activity.

Money market funds are classified as Level 1 fair value instruments. Investments in available-for-sale debt securities are classified as Level 2 and carried at fair value, which we estimate utilizing a third-party pricing service. The pricing service utilizes industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable. We validate valuations obtained from third-party services by understanding the models that are used and obtaining market values from other pricing sources. The Company did not classify any assets or liabilities as Level 3 as of June 30, 2022 or December 31, 2021.

The Company’s assets measured at fair value consisted of the following:


	June 30, 2022				December 31, 2021
		Total	Level 1	Level 2		Total	Level 1	Level 2
Assets
Cash equivalents	$	172,183	172,183	—	$	156,782	156,782	—
Commercial paper		959	—	959		—	—	—
Corporate debt securities		18,822	—	18,822		—	—	—
U.S. government securities		2,604	—	2,604		—	—	—
Total	$	194,568	172,183	22,385	$	156,782	156,782	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventory

6. INVENTORY

Inventory, net consisted of the following:


	As of
	June 30,		December 31,
	2022		2021
Raw materials	$	606	$	986
Work in process		1,809		1,787
Finished goods		2,242		2,108
Inventory, gross		4,657		4,881
Reserve for excess inventory		(449)		(449)
Total inventory, net	$	4,208	$	4,432

Intangible Assets

6 Months Ended

Jun. 30, 2022

Intangible Assets Net Excluding Goodwill [Abstract]

Intangible Assets

7. INTANGIBLE ASSETS

In August 2019, the Company received FDA approval of WAKIX® (pitolisant) for the treatment of excessive daytime sleepiness (“EDS”) in adult patients with narcolepsy. This event triggered a milestone payment of $75,000 under the provisions of the License Agreement (defined below) which the Company capitalized as an intangible asset. The Company determined a useful life of 10 years for such intangible asset, and, as of June 30, 2022 the remaining useful life was 7.3 years.

In October 2020, the Company received FDA approval for the New Drug Application (“NDA”) for WAKIX for the treatment of cataplexy in adult patients with narcolepsy. This event triggered a milestone payment of $100,000 under the provisions of the License Agreement which the Company capitalized as an intangible asset

and paid in January of 2021. The Company determined a useful life of 9 years for such intangible asset, and, as of June 30, 2022 the remaining useful life was 7.3 years.

In February 2022, the Company attained $500,000 in life-to-date aggregate net sales of WAKIX in the United States. This event triggered a final $40,000 payment under the provisions of the License Agreement which the Company capitalized as an intangible asset and paid in March of 2022. The Company determined a useful life of 7.6 years for such intangible asset, and, as of June 30, 2022 the remaining useful life was 7.3 years.

Amortization expense was $5,961 and $4,629 for the three months ended June 30, 2022 and 2021, respectively, and $11,043 and $9,208 for the six months ended June 30, 2022 and 2021, respectively, and is recorded in general and administrative expenses on the unaudited condensed consolidated statements of operations and comprehensive income.

Future amortization expense relating to unamortized intangible assets as of June 30, 2022 for the periods indicated below consists of the following:


Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$	11,923
2023		23,845
2024		23,845
2025		23,845
2026		23,845
Thereafter		65,573
Total	$	172,876

The gross carrying amount and net book value of the intangible assets is as follows:


	As of
	June 30,		December 31,
	2022		2021
Gross Carrying Amount	$	215,000	$	175,000
Accumulated Amortization		(42,124)		(31,081)
Net Book Value	$	172,876	$	143,919

License and Asset Purchase Agreements

6 Months Ended

Jun. 30, 2022

License and Asset Purchase Agreements [Abstract]

License and Asset Purchase Agreements

8. LICENSE AND ASSET PURCHASE AGREEMENTS

In July 2017, Harmony entered into the License Agreement (“the License Agreement”) with Bioprojet Société Civile de Recherche (“Bioprojet”) whereby Harmony acquired the exclusive right to commercialize the pharmaceutical compound pitolisant for the treatment, and/or prevention, of narcolepsy, obstructive sleep apnea, idiopathic hypersomnia, and Parkinson’s disease as well as any other indications unanimously agreed by the parties in the United States and its territories. A milestone payment of $50,000 was due upon acceptance by the FDA of pitolisant’s NDA, which was achieved in February 2019 and was expensed within research and development for the year ended December 31, 2019. A milestone payment of $77,000, which included a $2,000 fee that is described below, was due upon FDA approval of WAKIX (pitolisant) for treatment of EDS in adult patients with narcolepsy, which was achieved in August 2019. The $2,000 payment and $75,000 milestone payment were paid in August and November 2019, respectively. In addition, a milestone payment of $102,000, which included a $2,000 fee was due upon the FDA approval of the NDA for WAKIX for the treatment of cataplexy in adult patients with narcolepsy. The $2,000 payment was paid in October 2020 and a $100,000 milestone payment was paid in January 2021. A final $40,000 milestone payment was paid to Bioprojet in March 2022 upon WAKIX attaining $500,000 in aggregate net sales in the United States. The License Agreement also requires a fixed trademark royalty and a tiered royalty based on net sales, which is payable to Bioprojet on a quarterly basis. The Company incurred $17,125 and $11,812 for the three months ended June 30, 2022 and 2021, respectively, and $30,797 and $21,359 for the six months ended June 30, 2022 and 2021,

respectively, for sales-based, trademark and tiered royalties recognized as cost of product sold. As of June 30, 2022 and December 31, 2021, the Company had accrued $17,125 and $16,396, respectively, for sales-based, trademark and tiered royalties.

Agreement Related to Intellectual Property

In August 2021, the Company entered into an asset purchase agreement with ConSynance Therapeutics, Inc. (the “APA”) to acquire HBS-102 (formerly referred to as “CSTI-100”), a potential first-in-class molecule with a novel mechanism of action. Under the terms of the APA, the Company acquired full development and commercialization rights globally, with the exception of Greater China, for $3,500. The Company accounted for the transaction as an asset acquisition as substantially all of the fair value of the assets acquired was concentrated in a single identified asset. Additionally, there are payments due under the APA upon the achievement of certain milestones including $1,750 for preclinical milestones, $19,000 for development milestones, $44,000 for regulatory milestones and $110,000 for sales milestones.

Accrued Expenses

6 Months Ended

Jun. 30, 2022

Payables And Accruals [Abstract]

Accrued Expenses

9. ACCRUED EXPENSES

Accrued expenses consist of the following:


	As of
	June 30,		December 31,
	2022		2021
Royalties due to third parties	$	17,125	$	16,396
Rebates and other sales deductions		22,558		17,141
Interest		2,198		2,125
Selling and marketing		1,644		1,983
Research and development		253		658
Professional fees, consulting, and other services		928		1,645
Other expenses		920		301
	$	45,626	$	40,249

Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

10. DEBT

Credit Agreements

Blackstone Credit Agreement

In August 2021, the Company entered into the Blackstone Credit Agreement that provides for (i) a senior secured term loan facility in an aggregate original principal amount of $200,000 (the “Initial Term Loan”) and (ii) a senior secured delayed draw term loan facility in an aggregate principal amount up to $100,000 (the “DDTL” and, together with the Initial Term Loan, the “Loans”). The DDTL was initially available to draw down through August 9, 2022. In August 2022, the Company entered into an agreement to extend the expiration date of the DDTL to August 9, 2023, for which the Company will pay a ticking fee at a rate of 1% per annun on the undrawn portion of the DDTL, commencing on August 10, 2022.

The repayment schedule for the Initial Term Loan consists of quarterly $500 principal payments, which commenced on December 31, 2021 and increasing to quarterly $5,000 principal payments beginning on March 31, 2024, with a $145,500 payment due on the maturity date of August 9, 2026 (“Maturity Date”). Interest is payable quarterly, which commenced on November 9, 2021 and continues through the Maturity Date. The Initial Term Loan bears interest at a per annum rate equal to LIBOR, subject to a 1.00% floor, plus 6.50%.

Net cash received related to the Initial Term Loan as a result of the transaction, less debt issuance costs of $8,151, was $191,849. The debt issuance costs related to the Initial Term Loan will be amortized as additional interest expense over the five-year loan term of the Blackstone Credit Agreement. In addition, the Company paid $1,000 in debt issuance costs relating the DDTL, which are recorded in other current assets within the unaudited condensed consolidated balance sheet. The fair value of the Initial Term Loan as of June 30, 2022 was $142,459.

Long-term debt, net consists of the following:


	June 30,		December 31,
	2022		2021
Liability component - principal	$	198,500	$	199,500
Unamortized debt discount associated with debt financing costs		(6,693)		(7,516)
Liability component - net carrying value		191,807		191,984
Less current portion		(2,000)		(2,000)
Long-term debt, net	$	189,807	$	189,984

Future minimum payments relating to long-term debt, net as of June 30, 2022, for the periods indicated below consists of the following:


Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$	1,000
2023		2,000
2024		20,000
2025		20,000
2026		155,500
Thereafter		—
Total	$	198,500

Interest expense related to the Company’s long-term debt, net, is included in interest expense, net in the unaudited condensed consolidated statements of operations and comprehensive income and consists of the following:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Interest on principal balance	$	3,773	$	6,582	$	7,597	$	13,092
Amortization of deferred financing costs		411		697		823		1,361
Total term loan interest expense	$	4,184	$	7,279	$	8,420	$	14,453

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-Paragraph 1B
-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-SubTopic 20
-Section 50
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

11. LEASES

In June 2018, the Company entered into an operating lease for approximately fifteen thousand square feet of office space in Plymouth Meeting, PA, which expires in May 2024. In December 2020, the Company entered into an operating lease for approximately thirteen thousand square feet of additional office space in Plymouth Meeting, PA, which expires in May 2024. The terms of the lease payments provide for rental payments on a monthly basis and on a graduated scale. The Company also leases a fleet of automobiles that are used by its sales representatives and are classified as operating leases.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12

months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 3 years, some of which may include the option to extend or terminate the leases.

The Company recorded operating lease costs of $392 and $293 for the three months ended June 30, 2022 and 2021, respectively, and $777 and $557 for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, the weighted-average remaining lease term for operating leases was 2.1 years and the weighted-average discount rate for operating leases was 3.8%.

Supplemental balance sheet information related to operating leases was as follows:


Leases	Classification		June 30, 2022		December 31, 2021
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,985	$	3,298
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,581	$	1,527
Operating lease liability, long-term	Other long-term liabilities		1,777		2,233
Total operating lease liabilities		$	3,358	$	3,760

Supplemental cash flow information related to operating leases was as follows:


		June 30, 2022		June 30, 2021
Operating cash flows from operating leases	$	872	$	538
Right of use assets obtained in exchange for operating lease obligations (1)	$	465	$	2,961

(1)

Including the balance recognized on January 1, 2021, upon adoption of ASU No. 2016-02.

Future payments under noncancelable operating leases with initial terms of one year or more as of June 30, 2022 consisted of the following:


Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$	840
2023		1,672
2024		951
2025		30
2026		—
Thereafter		—
Total lease payments		3,493
Less: imputed interest		(135)
Total lease liabilities	$	3,358

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, the Company is subject to claims and suits arising in the ordinary course of business. The Company accrues such liabilities when they are known, if they are deemed probable and can be reasonably estimated. As of June 30, 2022, there were no material claims or suits outstanding.

Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Stockholders Equity Note [Abstract]

Stockholders' Equity

13. STOCKHOLDERS’ EQUITY

Common Stock

The holders of common stock are entitled to one vote for each share held on all matters submitted to a vote of the Company’s stockholders. The holders of common stock do not have any cumulative voting rights. Holders of common stock are entitled to receive ratably any dividends declared by the Company’s board of directors out of funds legally available for that purpose, subject to any preferential dividend rights of any outstanding preferred stock. The Company’s common stock has no preemptive rights, conversion rights or other subscription rights or redemption or sinking fund provisions.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Stock Incentive Plan and Stock-based Compensation

6 Months Ended

Jun. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Incentive Plan and Stock-based Compensation

14. STOCK INCENTIVE PLAN AND STOCK-BASED COMPENSATION

2020 Stock Incentive Plan

In connection with the Company’s IPO, the board of directors adopted, and its stockholders approved, the 2020 Incentive Award Plan (the “2020 Plan”), in order to facilitate the grant of cash and equity incentives to directors, employees (including the Company’s named executive officers) and consultants of the Company and its subsidiaries. The 2020 Plan provides for the grant of stock options, including incentive stock options (“ISOs”) and non-qualified stock options (“NSOs”), SARs, restricted stock, dividend equivalents, restricted stock units (“RSUs”) and other stock or cash-based awards.

Stock options and stock appreciation rights under the 2020 Plan have a 10-year contractual term and vest over the vesting period specified in the applicable award agreement, at achievement of a performance requirement, or upon change of control (as defined in the applicable plan). RSUs vest over the vesting period specified in the applicable award agreement, at achievement of a performance requirement, or upon change of control (as defined in the applicable plan). As of June 30, 2022, there were 5,003,096 shares of common stock available for issuance under the 2020 Plan. The number of shares that may be issued under the 2020 Plan will automatically increase on January 1 of each year in an amount equal to the lesser of (i) 4.0% of the shares of the Company’s common stock outstanding on December 31 of the preceding year or (ii) an amount determined by the Company’s board of directors.

2017 Stock Incentive Plan

On August 7, 2017, the Company adopted an equity incentive plan (the “2017 Plan”). Under the 2017 Plan, directors, officers, employees, consultants, and advisors of the Company can be paid incentive compensation measured by the value of the Company’s common shares through grants of stock options, stock appreciation rights (“SARs”), or restricted stock. Following the adoption of the 2020 Plan, no further grants have been, or will be, made under the 2017 Plan. However, the 2017 Plan will continue to govern the terms and conditions of outstanding awards granted under it.

Stock Options

The following table summarizes stock option activity for the six months ended June 30, 2022:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2021	5,716,597	$	22.53	8.09
Awards issued	1,463,367	$	48.90
Awards exercised	(278,305)	$	9.87
Awards forfeited	(87,330)	$	28.95
Awards outstanding—June 30, 2022	6,814,329	$	28.63	8.12

Stock Appreciation Rights

The following table summarizes SARs activity for the six months ended June 30, 2022:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2021	49,294	$	9.24	7.29
Awards issued	—	$	—
Awards exercised	(3,651)	$	8.22
Awards forfeited	(2,435)	$	8.22
Awards outstanding—June 30, 2022	43,208	$	9.38	6.83

Restricted Stock Units

The following table summarizes RSU activity for the six months ended June 30, 2022:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2021	60,000	$	29.03	9.24
Awards issued	—	$	—
Awards exercised	—	$	—
Awards forfeited	—	$	—
Awards outstanding—June 30, 2022	60,000	$	29.03	8.74

As of June 30, 2022 and December 31, 2021, stock awards issued under the 2017 and 2020 Plans of 1,314,082 and 1,285,432 common shares, respectively, were vested.

Value of Stock Options and SARs

The Company values options and SARs using the Black-Scholes option-pricing model. The Company lacks sufficient historical company-specific volatility information. Therefore, the Company estimates expected stock volatility based on historical volatility of peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. For options with service-

based vesting conditions, the expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. For SARs, the expected term is based upon the weighting of certain future events. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for the time periods approximately equal to the expected term of the award. An expected dividend yield of 0% is based on the fact that the Company has never paid cash dividends and does not expect to do so in the foreseeable future.

The assumptions used to value the awards are summarized in the following table.


	As of
	June 30,		December 31,
	2022		2021
Dividend yield	0.00	%	0.00	%
Expected volatility	72.57-74.99	%	60.00	%
Risk-free interest rate	1.99 - 3.33	%	0.66 - 1.44	%
Expected term (years)	3.6 - 6.3		4.1- 6.3

Value of RSUs

The fair value of RSUs is equal to the value of the Company’s common stock on the grant date.

The weighted average per share fair value of awards issued under the 2017 Plan and 2020 Plan was $17.19 and $12.82 on June 30, 2022 and December 31, 2021, respectively.

Stock-Based Compensation

Stock-based compensation expense, net for the three and six months ended June 30, 2022 and 2021, was recorded in the unaudited condensed consolidated statements of operations and comprehensive income in the following line items:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Research and development expense	$	826	$	549	$	1,344	$	969
Sales and marketing expense		884		777		1,860		1,396
General and administrative expense		5,661		2,481		9,063		4,693
	$	7,371	$	3,807	$	12,267	$	7,058

Options and RSUs issued under the 2017 Plan and 2020 Plan are included in stockholder’s equity, and SARs are included in other non-current liabilities, in the Company’s unaudited condensed consolidated balance sheet. As of June 30, 2022, the total unrecognized stock-based compensation expense related to Options and RSUs was $90,381. Such amount will be recognized in the Company’s consolidated statement of operations over a weighted average period of 3.3 years.

Employee Stock Purchase Plan

The 2021 Employee Stock Purchase Plan (“ESPP”) was adopted by the Company’s Board of Directors on April 30, 2021. The ESPP permits eligible employees to purchase shares of the Company’s common stock at a 15% discount from the lesser of the fair market value per share of the Company’s common stock on the first day of the offering period or the fair market value of the Company’s common stock on the purchase date. Funds are collected from employees through after-tax payroll deductions. The total number of shares reserved for issuance under the ESPP was initially 629,805, which will automatically increase on January 1 of each year in an amount equal to the lesser of (i) 1.0% of the shares of the Company’s common stock outstanding on December 31 of the preceding year or (ii) an amount determined by the Company’s board of directors. It is intended that the ESPP meet the requirements for an “employee stock purchase plan” under Section 423 of

the Internal Revenue Code. For both the three and six months ended June 30, 2022, there were 14,889 shares issued under the ESPP. There were no shares issued under the ESPP for the three and six months ended June 30, 2021. The discount on the ESPP for the three and six months ended June 30, 2022 was $91 and $185, respectively, and $23 for both the three and six months ended June 30, 2021, and is recorded within stock-based compensation expense.

Earnings per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings per Share

15. EARNINGS PER SHARE

The Company reported net income for the three and six months ended June 30, 2022 and 2021. Diluted net income per common share is computed under the treasury stock method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, stock appreciation rights, restricted stock units and warrants. In addition, the Company analyzes the potential dilutive effects of the outstanding convertible preferred stock under the ‘if-converted’ method when calculating diluted earnings per share, in which it is assumed that the outstanding convertible preferred stock converts into common stock at the beginning of the period or when issued if later. The Company reports the more dilutive of the approaches (treasury stock or ‘if converted’) as its diluted net income per share during the period.

The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator
Net income	$	23,531	$	14,117	$	45,016	$	21,503
Denominator
Net income per common share - basic	$	0.40	$	0.25	$	0.76	$	0.38
Net income per common share - diluted	$	0.39	$	0.24	$	0.74	$	0.37
Weighted average number of shares of common stock - basic		59,063,358		56,940,840		58,986,370		56,916,282
Weighted average number of shares of common stock - diluted		60,922,672		58,592,876		60,759,026		58,635,195

Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options, SARs, and RSUs to purchase common stock		1,859,314		1,461,958		1,772,656		1,511,899
Warrants		—		190,078		—		207,013
Total		1,859,314		1,652,036		1,772,656		1,718,912

Potential common shares issuable that were excluded from the computation of diluted weighted-average shares outstanding, as well as the warrant fair value adjustments excluded from the numerator, are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options, SARs, and RSUs to purchase common stock		5,058,223		4,731,119		5,144,881		4,681,177
Warrants		—		220,161		—		203,226
Total		5,058,223		4,951,280		5,144,881		4,884,403

Related-party Transactions

6 Months Ended

Jun. 30, 2022

Related-party Transactions

16. RELATED-PARTY TRANSACTIONS

The Company was party to a management agreement for professional services provided by a related party, Paragon Biosciences, LLC (“Paragon”). The related party is an entity that shares common ownership with the Company. In addition, the Chairman of the Company’s board of directors was the President and owner of the entity. The Company terminated the management agreement upon the consummation of its IPO. The Company is also party to a right of use agreement with the related party whereby it has access to and the right to use certain office space leased by the related party in Chicago, Illinois. In addition, the Company had participated in certain transactions with separate related parties that also share common ownership with the Company, primarily related to combined employee health plans. The Company incurred $ 71 for each of the three months ended June 30, 2022 and 2021, and $142 for each of the six months ended June 30, 2022 and 2021, in expenses to this related party, which are included in general and administrative expense in the unaudited condensed consolidated statements of operations and comprehensive loss. As of June 30, 2022 and December 31, 2021, there were no amounts due to or due from related parties included in the unaudited condensed consolidated balance sheets.

Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

17. SUBSEQUENT EVENTS

On July 31, 2022, Harmony entered into that certain License and Commercialization Agreement (the “2022 LCA”) with Bioprojet whereby Harmony obtained exclusive rights to manufacture, use and commercialize one or more new products based on pitolisant, in the United States and Latin America, with the potential to add additional indications and formulations upon agreement of both parties. Harmony will pay an upfront, non-refundable $30,000 licensing fee as well as additional payments of up to $150,000 due under the 2022 LCA upon the achievement of certain future development and sales-based milestones. In addition, there are certain payments due upon achievement of development milestones for new indications and formulations agreed upon by both parties. The 2022 LCA also requires a fixed trademark royalty and a tiered royalty based on net sales upon commercialization, which will be payable to Bioprojet on a quarterly basis. The closing of the 2022 LCA is contingent upon clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Company has updated certain prior period disclosures within Note 11 in order to conform with current period presentation.

Use of Estimates

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash


	As of
	June 30,		December 31,
	2022		2021
Cash and cash equivalents	$	236,533	$	234,309
Restricted cash		750		750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$	237,283	$	235,059

Restricted cash includes amounts required to be held as a security deposit in the form of letters of credit for the Company’s credit card program and the fleet program.

Investments

Investments

Concentrations of Risk

Concentrations of Risk

The Company depends on a single source supplier for its product and active pharmaceutical ingredient.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that equal the amount reflected in the statements of cash flows.


	As of
	June 30,		December 31,
	2022		2021
Cash and cash equivalents	$	236,533	$	234,309
Restricted cash		750		750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$	237,283	$	235,059

Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments

Schedule of carrying value and amortized cost of available-for-sale debt securities

The carrying value and amortized cost of the Company’s available-for-sale debt securities, summarized by major security type of security, consisted of the following:


	June 30, 2022
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	959	1	(1)	$	959
Corporate debt securities		14,344	3	(18)		14,329
U.S. government securities		2,354	1	(5)		2,350
Total short-term investments	$	17,657	5	(24)	$	17,638

Long-term:
Corporate debt securities	$	4,503	1	(11)	$	4,493
U.S. government securities		254	—	—		254
Total long-term investments	$	4,757	1	(11)	$	4,747

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Measurements

Schedule of assets measured at fair value

The Company’s assets measured at fair value consisted of the following:


	June 30, 2022				December 31, 2021
		Total	Level 1	Level 2		Total	Level 1	Level 2
Assets
Cash equivalents	$	172,183	172,183	—	$	156,782	156,782	—
Commercial paper		959	—	959		—	—	—
Corporate debt securities		18,822	—	18,822		—	—	—
U.S. government securities		2,604	—	2,604		—	—	—
Total	$	194,568	172,183	22,385	$	156,782	156,782	—

Inventory (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory Net

Inventory, net consisted of the following:


	As of
	June 30,		December 31,
	2022		2021
Raw materials	$	606	$	986
Work in process		1,809		1,787
Finished goods		2,242		2,108
Inventory, gross		4,657		4,881
Reserve for excess inventory		(449)		(449)
Total inventory, net	$	4,208	$	4,432

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Intangible Assets Net Excluding Goodwill [Abstract]

Schedule of Expected Future Annual Amortization Expense for Unamortized Intangible Assets

Future amortization expense relating to unamortized intangible assets as of June 30, 2022 for the periods indicated below consists of the following:


Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$	11,923
2023		23,845
2024		23,845
2025		23,845
2026		23,845
Thereafter		65,573
Total	$	172,876

Schedule of Gross Carrying Amount and Net Book Value of Intangible Assets

The gross carrying amount and net book value of the intangible assets is as follows:


	As of
	June 30,		December 31,
	2022		2021
Gross Carrying Amount	$	215,000	$	175,000
Accumulated Amortization		(42,124)		(31,081)
Net Book Value	$	172,876	$	143,919

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2022

Payables And Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consist of the following:


	As of
	June 30,		December 31,
	2022		2021
Royalties due to third parties	$	17,125	$	16,396
Rebates and other sales deductions		22,558		17,141
Interest		2,198		2,125
Selling and marketing		1,644		1,983
Research and development		253		658
Professional fees, consulting, and other services		928		1,645
Other expenses		920		301
	$	45,626	$	40,249

Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Balances of Long-term debt, net

Long-term debt, net consists of the following:


	June 30,		December 31,
	2022		2021
Liability component - principal	$	198,500	$	199,500
Unamortized debt discount associated with debt financing costs		(6,693)		(7,516)
Liability component - net carrying value		191,807		191,984
Less current portion		(2,000)		(2,000)
Long-term debt, net	$	189,807	$	189,984

Future Minimum Payments Relating to Long Term Debt

Future minimum payments relating to long-term debt, net as of June 30, 2022, for the periods indicated below consists of the following:


Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$	1,000
2023		2,000
2024		20,000
2025		20,000
2026		155,500
Thereafter		—
Total	$	198,500

Interest Expense Related to Long Term Debt


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Interest on principal balance	$	3,773	$	6,582	$	7,597	$	13,092
Amortization of deferred financing costs		411		697		823		1,361
Total term loan interest expense	$	4,184	$	7,279	$	8,420	$	14,453

Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of supplemental balance sheet and cash flow information related to operating leases

Supplemental balance sheet information related to operating leases was as follows:


Leases	Classification		June 30, 2022		December 31, 2021
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,985	$	3,298
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,581	$	1,527
Operating lease liability, long-term	Other long-term liabilities		1,777		2,233
Total operating lease liabilities		$	3,358	$	3,760

Supplemental cash flow information related to operating leases was as follows:


		June 30, 2022		June 30, 2021
Operating cash flows from operating leases	$	872	$	538
Right of use assets obtained in exchange for operating lease obligations (1)	$	465	$	2,961

(1)

Including the balance recognized on January 1, 2021, upon adoption of ASU No. 2016-02.

Schedule of future payments under noncancelable operating leases

Future payments under noncancelable operating leases with initial terms of one year or more as of June 30, 2022 consisted of the following:


Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$	840
2023		1,672
2024		951
2025		30
2026		—
Thereafter		—
Total lease payments		3,493
Less: imputed interest		(135)
Total lease liabilities	$	3,358

Stock Incentive Plan and Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Changes in Stock Options Granted

The following table summarizes stock option activity for the six months ended June 30, 2022:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2021	5,716,597	$	22.53	8.09
Awards issued	1,463,367	$	48.90
Awards exercised	(278,305)	$	9.87
Awards forfeited	(87,330)	$	28.95
Awards outstanding—June 30, 2022	6,814,329	$	28.63	8.12

Summary of Changes in SARs Granted

The following table summarizes SARs activity for the six months ended June 30, 2022:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2021	49,294	$	9.24	7.29
Awards issued	—	$	—
Awards exercised	(3,651)	$	8.22
Awards forfeited	(2,435)	$	8.22
Awards outstanding—June 30, 2022	43,208	$	9.38	6.83

Summary of Changes in RSUs Granted

The following table summarizes RSU activity for the six months ended June 30, 2022:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2021	60,000	$	29.03	9.24
Awards issued	—	$	—
Awards exercised	—	$	—
Awards forfeited	—	$	—
Awards outstanding—June 30, 2022	60,000	$	29.03	8.74

Summary of Assumptions Used to Value Awards

The assumptions used to value the awards are summarized in the following table.


	As of
	June 30,		December 31,
	2022		2021
Dividend yield	0.00	%	0.00	%
Expected volatility	72.57-74.99	%	60.00	%
Risk-free interest rate	1.99 - 3.33	%	0.66 - 1.44	%
Expected term (years)	3.6 - 6.3		4.1- 6.3

Summary of Stock-based Compensation Expense

Stock-Based Compensation


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Research and development expense	$	826	$	549	$	1,344	$	969
Sales and marketing expense		884		777		1,860		1,396
General and administrative expense		5,661		2,481		9,063		4,693
	$	7,371	$	3,807	$	12,267	$	7,058

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Summary of Computation of Basic and Diluted Net Income per Share

The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator
Net income	$	23,531	$	14,117	$	45,016	$	21,503
Denominator
Net income per common share - basic	$	0.40	$	0.25	$	0.76	$	0.38
Net income per common share - diluted	$	0.39	$	0.24	$	0.74	$	0.37
Weighted average number of shares of common stock - basic		59,063,358		56,940,840		58,986,370		56,916,282
Weighted average number of shares of common stock - diluted		60,922,672		58,592,876		60,759,026		58,635,195

Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share

Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options, SARs, and RSUs to purchase common stock		1,859,314		1,461,958		1,772,656		1,511,899
Warrants		—		190,078		—		207,013
Total		1,859,314		1,652,036		1,772,656		1,718,912


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options, SARs, and RSUs to purchase common stock		5,058,223		4,731,119		5,144,881		4,681,177
Warrants		—		220,161		—		203,226
Total		5,058,223		4,951,280		5,144,881		4,884,403

Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Aug. 31, 2020 USD ($) $ / shares shares
Organization And Description Of Business [Line Items]
Purchase of common stock upon exercise of warrants	410,239
Common Stock
Organization And Description Of Business [Line Items]
Common stock issued	42,926,630
Common Stock \| IPO
Organization And Description Of Business [Line Items]
Issuance of common stock (in shares)	6,151,162
Shares issued, price per share \| $ / shares	$ 24.00
Proceeds from issuance of common stock upon initial public offering \| $	$ 135,435
Underwriting discounts and commissions and offering expenses \| $	$ 12,193
Common Stock \| Over-Allotment Option
Organization And Description Of Business [Line Items]
Issuance of common stock (in shares)	802,325

Liquidity and Capital Resources - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Liquidity And Capital Resources [Abstract]
Accumulated deficit	$ 408,582	$ 453,598
Cash and cash equivalents	$ 236,533	$ 234,309

Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 236,533	$ 234,309
Restricted cash	750	750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$ 237,283	$ 235,059	$ 160,436	$ 229,381

Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2022 Institution customer	Jun. 30, 2021 customer	Dec. 31, 2021 customer
Summary Of Significant Accounting Policies [Line Items]
Number Of financial institutions \| Institution	2
Three Customers \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of customers	3		3
Concentration risk percentage	100.00%		100.00%
Three Customers \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of customers	3	3
Concentration risk percentage	100.00%	100.00%
Caremark LLC \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	38.00%		29.00%
Caremark LLC \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	39.00%	37.00%
PANTHERx Specialty Pharmacy LLC \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	34.00%		31.00%
PANTHERx Specialty Pharmacy LLC \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	32.00%	35.00%
Accredo Health Group, Inc \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	28.00%		40.00%
Accredo Health Group, Inc \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	29.00%	28.00%

Investments - - Carrying value and amortized cost of available-for-sale debt securities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Minimum
Investment securities
Non current investment maturity term	1 year
Maximum
Investment securities
Non current investment maturity term	2 years
Short-term
Investment securities
Amortized cost	$ 17,657
Gross Unrealized Gains	5
Gross Unrealized Losses	(24)
Fair Value	17,638
Short-term commercial paper
Investment securities
Amortized cost	959
Gross Unrealized Gains	1
Gross Unrealized Losses	(1)
Fair Value	959
Short-term corporate debt securities
Investment securities
Amortized cost	14,344
Gross Unrealized Gains	3
Gross Unrealized Losses	(18)
Fair Value	14,329
Short-term U.S. government securities
Investment securities
Amortized cost	2,354
Gross Unrealized Gains	1
Gross Unrealized Losses	(5)
Fair Value	2,350
Long-term
Investment securities
Amortized cost	4,757
Gross Unrealized Gains	1
Gross Unrealized Losses	(11)
Fair Value	4,747
Long-term corporate debt securities
Investment securities
Amortized cost	4,503
Gross Unrealized Gains	1
Gross Unrealized Losses	(11)
Fair Value	4,493
Long-term U.S. government securities
Investment securities
Amortized cost	254
Fair Value	$ 254

Fair Value Measurements - Assets measured at fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Assets	$ 194,568	$ 156,782
Cash equivalents
Assets
Assets	172,183	156,782
Commercial paper
Assets
Assets	959
Corporate debt securities
Assets
Assets	18,822
U.S. government securities
Assets
Assets	2,604
Level 1
Assets
Assets	172,183	156,782
Level 1 \| Cash equivalents
Assets
Assets	172,183	$ 156,782
Level 2
Assets
Assets	22,385
Level 2 \| Commercial paper
Assets
Assets	959
Level 2 \| Corporate debt securities
Assets
Assets	18,822
Level 2 \| U.S. government securities
Assets
Assets	$ 2,604

Inventory - Schedule of Inventory Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 606	$ 986
Work in process	1,809	1,787
Finished goods	2,242	2,108
Inventory, gross	4,657	4,881
Reserve for excess inventory	(449)	(449)
Total inventory, net	$ 4,208	$ 4,432

Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended					3 Months Ended		6 Months Ended
	Mar. 31, 2022	Feb. 28, 2022	Jan. 31, 2021	Nov. 30, 2019	Aug. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Finite Lived Intangible Assets [Line Items]
License agreement milestone payments paid				$ 75,000	$ 2,000
Amortization expense						$ 5,961	$ 4,629	$ 11,043	$ 9,208
Net product revenues						$ 107,028	$ 73,821	$ 192,341	$ 133,495
WAKIX
Finite Lived Intangible Assets [Line Items]
Final payment paid	$ 40,000
Useful life of intangible asset								7 years 7 months 6 days
Remaining useful life								7 years 3 months 18 days
WAKIX \| United States
Finite Lived Intangible Assets [Line Items]
Net product revenues		$ 500,000
WAKIX \| Daytime Sleepiness
Finite Lived Intangible Assets [Line Items]
License agreement milestone payments paid				$ 75,000
Useful life of intangible asset								10 years
Remaining useful life								7 years 3 months 18 days
NDA for WAKIX. \| Cataplexy
Finite Lived Intangible Assets [Line Items]
License agreement milestone payments paid			$ 100,000
Useful life of intangible asset			9 years
Remaining useful life								7 years 3 months 18 days

Intangible Assets - Schedule of Expected Future Annual Amortization Expense for Unamortized Intangible Assets (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Finite Lived Intangible Assets Net Amortization Expense Fiscal Maturity [Abstract]
2022 (Excluding the six months ended June 30, 2022)	$ 11,923
2023	23,845
2024	23,845
2025	23,845
2026	23,845
Thereafter	65,573
Total	$ 172,876

Intangible Assets - Schedule of Gross Carrying Amount and Net Book Value of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Intangible Assets Net Excluding Goodwill [Abstract]
Gross Carrying Amount	$ 215,000	$ 175,000
Accumulated Amortization	(42,124)	(31,081)
Net Book Value	$ 172,876	$ 143,919

License and Asset Purchase Agreements - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended					3 Months Ended		6 Months Ended
	Aug. 31, 2021	Jan. 31, 2021	Oct. 31, 2020	Nov. 30, 2019	Aug. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Feb. 28, 2019
License and Asset Purchase Agreements [Line Items]
Licensing agreement milestone fees					$ 2,000
License agreement milestone payments paid				$ 75,000	2,000
License agreement, additional milestone payment due					102,000
Cost of product sold						$ 18,921	$ 12,687	$ 33,637	$ 23,097
Accrued Sales Based Trademark and Royalties						17,125		17,125		$ 16,396
Upon Acceptance by FDA of Pitolisant's
License and Asset Purchase Agreements [Line Items]
License agreement, milestone payment due											$ 50,000
Upon FDA Approval of WAKIX
License and Asset Purchase Agreements [Line Items]
License agreement, milestone payment due					77,000
Licensing agreement milestone fees					$ 2,000
License agreement milestone payments paid		$ 100,000	$ 2,000
Sales-based, Trademark and Tiered Royalties
License and Asset Purchase Agreements [Line Items]
Cost of product sold						$ 17,125	$ 11,812	30,797	$ 21,359
All Countries Excluding Greater China \| HBS-102 \| Asset Purchase Agreement with ConSynance Therapeutics [Member]
License and Asset Purchase Agreements [Line Items]
Consideration transferred	$ 3,500
Payment for intellectual property upon preclinical milestones	1,750
Payment for intellectual property upon developmental milestones	19,000
Payment for intellectual property upon sales milestones	110,000
Payment for intellectual property upon regulatory milestones	$ 44,000
Bioprojet \| United States
License and Asset Purchase Agreements [Line Items]
Amount of Aggregate Net Sales Attaining								500,000
Bioprojet \| Attaining $500,000 Aggregate Net Sales \| United States \| Upon FDA Approval of WAKIX
License and Asset Purchase Agreements [Line Items]
Final payment paid								$ 40,000

Accrued Expenses -Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables And Accruals [Abstract]
Royalties due to third parties	$ 17,125	$ 16,396
Rebates and other sales deductions	22,558	17,141
Interest	2,198	2,125
Selling and marketing	1,644	1,983
Research and development	253	658
Professional fees, consulting, and other services	928	1,645
Other expenses	920	301
Accrued expenses	$ 45,626	$ 40,249

Debt - Additional Information (Details) - Blackstone Alternative Credit Advisors ("Blackstone") - USD ($) $ in Thousands		1 Months Ended
	Aug. 10, 2022	Aug. 31, 2021	Jun. 30, 2022
Senior Secured Term Loan
Debt Instrument [Line Items]
Aggregate principal amount		$ 200,000
Debt issuance costs		8,151
Cash proceeds received		$ 191,849
Term of loan		5 years
Fair value of loan			$ 142,459
Senior Secured Term Loan \| Repayment of Debt Commencing on December 31, 2021
Debt Instrument [Line Items]
Periodic payment principal		$ 500
Senior Secured Term Loan \| Repayment of Debt Beginning on March 31, 2024
Debt Instrument [Line Items]
Periodic payment principal		5,000
Senior Secured Term Loan \| Repayment of Debt Due on Maturity Date
Debt Instrument [Line Items]
Periodic payment principal		$ 145,500
Senior Secured Term Loan \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		6.50%
Senior Secured Term Loan \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Senior Secured Delayed Draw Term Loan
Debt Instrument [Line Items]
Aggregate principal amount		$ 100,000
Percentage of ticking fee	1.00%
Debt issuance costs		$ 1,000

Debt - Balances of Long-term Debt, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Liability component - principal	$ 198,500	$ 199,500
Unamortized debt discount associated with debt financing costs	(6,693)	(7,516)
Liability component - net carrying value	191,807	191,984
Less current portion	(2,000)	(2,000)
Long-term debt, net	$ 189,807	$ 189,984

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - Future Minimum Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Long-term Debt, Fiscal Year Maturity [Abstract]
2022 (Excluding the six months ended June 30, 2022)	$ 1,000
2023	2,000
2024	20,000
2025	20,000
2026	155,500
Total	$ 198,500	$ 199,500

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Disclosure [Abstract]
Interest on principal balance	$ 3,773	$ 6,582	$ 7,597	$ 13,092
Amortization of deferred financing costs	411	697	823	1,361
Total term loan interest expense	$ 4,184	$ 7,279	$ 8,420	$ 14,453

Leases (Details) ft² in Thousands, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
Leases (Details) ft² in Thousands, $ in Thousands	Dec. 31, 2018 ft²	Jun. 30, 2018 ft²	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease square feet of office space \| ft²	13	15
Lessee, Operating Lease, Existence of Option to Extend [true false]					true
Lessee, Operating Lease, Existence of Option to Terminate [true false]					true
Cost operating lease \| $			$ 392	$ 293	$ 777	$ 557
Weighted average remaining lease term			2 years 1 month 6 days		2 years 1 month 6 days
Weighted-average discount rate for operating leases			3.80%		3.80%
Minimum
Lessee, Lease, Description [Line Items]
Lease terms			1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease terms			3 years		3 years

Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Operating lease right-of-use assets	$ 2,985	$ 3,298
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets Noncurrent	Other Assets Noncurrent
Liabilities
Operating lease liability, current portion	$ 1,581	$ 1,527
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities Current	Other Liabilities Current
Operating lease liability, long-term	$ 1,777	$ 2,233
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities Noncurrent	Other Liabilities Noncurrent
Total operating lease liabilities	$ 3,358	$ 3,760
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities Current, Other Liabilities Noncurrent	Other Liabilities Current, Other Liabilities Noncurrent

Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating cash flows from operating leases	$ 872	$ 538
Right of use assets obtained in exchange for operating lease obligations (1)	$ 465	$ 2,961

Leases - Future payments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Years ending December 31,
2022 (Excluding the six months ended June 30, 2022)	$ 840
2023	1,672
2024	951
2025	30
Total lease payments	3,493
Less: imputed interest	(135)
Total operating lease liabilities	$ 3,358	$ 3,760

Commitments and Contingencies - Additional Information (Details)	Jun. 30, 2022 claim
Commitments And Contingencies Disclosure [Abstract]
Claims or suits outstanding	0

Stockholders' Equity (Details)	6 Months Ended
Stockholders' Equity (Details)	Jun. 30, 2022
Stockholders Equity Note [Abstract]
Common stock, voting rights	one vote for each share

Stock Incentive Plan and Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 90,381		$ 90,381
Weighted average period				3 years 3 months 18 days
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average per share fair value of awards issued (in USD per share)				$ 17.19		$ 12.82
2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options contractual term				10 years
Percentage of increment of common stock outstanding				4.00%
Total number of shares available for issuance		5,003,096		5,003,096
2017 and 2020 Plans \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock vested				1,314,082		1,285,432
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of increment of common stock outstanding	1.00%
ESPP permits eligible employees to purchase shares of common stock at discount	15.00%
Total number of shares available for issuance	629,805
Shares issued under the ESPP		14,889	0	14,889	0
Amount of discount on ESSP		$ 91	$ 23	$ 185	$ 23

Stock Incentive Plan and Stock-based Compensation - Summary of Changes in Stock Options Granted (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Awards, Awards outstanding, Beginning balance	5,716,597
Number of Awards, Awards issued	1,463,367
Number of Awards, Awards exercised	(278,305)
Number of Awards, Awards forfeited	(87,330)
Number of Awards, Awards outstanding, Ending balance	6,814,329	5,716,597
Weighted-Average Exercise Price, Awards outstanding, Beginning balance	$ 22.53
Weighted-Average Exercise Price, Awards issued	48.90
Weighted-Average Exercise Price, Awards exercised	9.87
Weighted-Average Exercise Price, Awards forfeited	28.95
Weighted-Average Exercise Price, Awards outstanding, Ending balance	$ 28.63	$ 22.53
Weighted-Average Remaining Contractual Term	8 years 1 month 13 days	8 years 1 month 2 days

Stock Incentive Plan and Stock-based Compensation - Summary of Changes in SARs Granted (Details) - Stock Appreciation Rights - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Awards, Awards outstanding, Beginning balance	49,294
Number of Awards, Awards exercised	(3,651)
Number of Awards, Awards forfeited	(2,435)
Number of Awards, Awards outstanding, Ending balance	43,208	49,294
Weighted-Average Exercise Price, Awards outstanding, Beginning balance	$ 9.24
Weighted-Average Exercise Price, Awards exercised	8.22
Weighted-Average Exercise Price, Awards forfeited	8.22
Weighted-Average Exercise Price, Awards outstanding, Ending balance	$ 9.38	$ 9.24
Weighted-Average Remaining Contractual Term	6 years 9 months 29 days	7 years 3 months 14 days

Stock Incentive Plan and Stock-based Compensation - Summary of Changes in RSUs Granted (Details) - Restricted Stock Units - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Awards, Awards outstanding, Beginning balance	60,000
Number of Awards, Awards outstanding, Ending balance	60,000	60,000
Weighted-Average Exercise Price, Awards outstanding, Beginning balance	$ 29.03
Weighted-Average Exercise Price, Awards outstanding, Ending balance	$ 29.03	$ 29.03
Weighted-Average Remaining Contractual Term	8 years 8 months 26 days	9 years 2 months 26 days

Stock Incentive Plan and Stock-based Compensation - Summary of Assumptions Used to Value Awards (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility		60.00%
Expected volatility, minimum	72.57%
Expected volatility, maximum	74.99%
Risk-free interest rate, minimum	1.99%	0.66%
Risk-free interest rate, maximum	3.33%	1.44%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	3 years 7 months 6 days	4 years 1 month 6 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years 3 months 18 days	6 years 3 months 18 days

Stock Incentive Plan and Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 7,371	$ 3,807	$ 12,267	$ 7,058
Research and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	826	549	1,344	969
Sales and Marketing Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	884	777	1,860	1,396
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 5,661	$ 2,481	$ 9,063	$ 4,693

Earnings per Share - Summary of Computation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator
Net income	$ 23,531	$ 14,117	$ 45,016	$ 21,503
Net income available to common shareholders	$ 23,502	$ 14,117	$ 44,987	$ 21,503
Denominator
Net income per common share - basic	$ 0.40	$ 0.25	$ 0.76	$ 0.38
Net income per common share - diluted	$ 0.39	$ 0.24	$ 0.74	$ 0.37
Weighted average number of shares of common stock - basic	59,063,358	56,940,840	58,986,370	56,916,282
Weighted average number of shares of common stock - diluted	60,922,672	58,592,876	60,759,026	58,635,195

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Earnings per Share - Summary of Securities Outstanding Included in Computation above, Utilizing Treasury Stock Method (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	1,859,314	1,652,036	1,772,656	1,718,912
Stock options, SARs, and RSUs to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	1,859,314	1,461,958	1,772,656	1,511,899
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total		190,078		207,013

Earnings per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	5,058,223	4,951,280	5,144,881	4,884,403
Stock options, SARs, and RSUs to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	5,058,223	4,731,119	5,144,881	4,681,177
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total		220,161		203,226

Related-party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Amounts due to or due from related parties	$ 0		$ 0		$ 0
Management Services Agreement \| General and Administrative Expense
Related Party Transaction [Line Items]
Management fee expense and other expenses to related party	$ 71	$ 71	$ 142	$ 142

- Definition

Receivables to be collected from (obligations owed to) related parties, net as of the balance sheet date where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth.

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Subsequent Events - Additional Information (Details) - Subsequent Events - Bioprojet - Pitolisant $ in Thousands	Jul. 31, 2022 USD ($)
Subsequent Event [Line Items]
License agreement, upfront non-refundable licensing fees paid	$ 30,000
License agreement, maximum additional milestone payment due	$ 150,000