Harmony Biosciences Holdings (HRMY)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	557,919	460,786	354,374	249,922	132,004
Revenue	US$ in thousands	714,734	548,499	419,060	255,101	134,691
Gross profit margin		78.06%	84.01%	84.56%	97.97%	98.01%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $557,919K ÷ $714,734K
= 78.06%

The gross profit margin of Harmony Biosciences Holdings has shown a gradual decline over the past five years. Starting at a high of 98.01% in December 31, 2020, it decreased slightly to 97.97% by December 31, 2021. However, a more notable decline occurred in the following years, with the margin dropping to 84.56% by December 31, 2022, and further decreasing to 84.01% by December 31, 2023. The trend continued downward, with the margin falling to 78.06% by December 31, 2024.

This downward trend in the gross profit margin may indicate challenges in maintaining profitability in the face of increasing costs of goods sold or pricing pressures. It could suggest the need for Harmony Biosciences Holdings to closely evaluate its cost structure, pricing strategies, and operational efficiencies to improve its overall profitability in the future.