Contrarian Corpus
short seller regulatory filing follow up
2023-04-03 · 10 pages

Harmony Biosciences HRMY

Scorpion petitions the FDA to pull Wakix (pitolisant), arguing the H3-receptor drug is inherently cardiotoxic, clinically inferior to $10 modafinil, and approved on fraud-tainted Russian trials.

Thesis

Scorpion Capital formally petitions the FDA to withdraw approval of Harmony Biosciences' Wakix (pitolisant), the first-ever histamine H3 receptor antagonist/inverse agonist, calling it a regrettable repeat of the Seldane (terfenadine) cardiotoxicity saga. Scorpion documents a fatal heart attack in a 70-year-old two weeks after starting Wakix, an unreported drug-induced arrhythmia in a healthy 42-year-old, 13 pre-approval deaths concentrated in foreign trial arms, and a wave of FAERS adverse events including seizures, hepatitis and pulmonary embolism. The petition argues that hERG blockade is structurally inseparable from H3 binding, that pivotal HARMONY trials enrolling 38% of patients in Russia rely on an unvalidated translated Epworth Sleepiness Scale, and that a $175,000-a-year drug inferior to generic modafinil and used only as a third- or fourth-line add-on has no cost/benefit justification. Scorpion compares the situation to Aduhelm and demands withdrawal, a DHCP warning letter, a REMS regime, and an Ad Comm.

SCQA

Situation

Wakix (pitolisant), marketed by Harmony Biosciences at $175,000/year, is the first and only FDA-approved histamine H3 receptor antagonist/inverse agonist, indicated for excessive daytime sleepiness and cataplexy in adult narcolepsy.

Complication

H3 antagonists are structurally inseparable from hERG blockade and cardiotoxicity; FAERS reports, FOIA case narratives, a recent fatality and 13 pre-approval deaths in Russian-led trials reveal a super-normal post-marketing safety signal.

Resolution

FDA should withdraw Wakix's approval, force a Dear Healthcare Provider warning letter, transition existing patients to a REMS-controlled compassionate-use program, and convene an Advisory Committee with hERG and H3 experts.

Reward

Withdrawal would prevent a Seldane-style cascade of preventable cardiac deaths in a vulnerable narcolepsy population, with no public-health loss given that generic modafinil at ~$10/month is the superior standard of care.

The three reasons

  1. 1

    Pitolisant's H3-receptor class is inherently cardiotoxic via hERG blockade — a Catch-22 with no fix

  2. 2

    FAERS, FOIA case narratives and 13 pre-approval deaths show a super-normal post-marketing safety signal

  3. 3

    Pivotal trials were run in Russia and other low-quality jurisdictions on an unvalidated subjective endpoint (ESS)

Primary demands

  • Withdraw FDA approval of Wakix (pitolisant) for all current and future indications
  • Require Harmony Biosciences to issue a Dear Healthcare Provider Letter (Important Drug Warning) to all Wakix prescribers
  • Transition Wakix to a compassionate-use program with a REMS protocol for current patients
  • Convene an FDA Advisory Committee to review the safety and efficacy data

KPIs cited

Annual cost of Wakix
$175,000 per patient per year vs. ~$10-15/month generic modafinil
Pre-approval deaths in pitolisant development program
13 total deaths, 12 in foreign clinical trials, 100% in drug arm vs. zero in placebo
Russian enrollment in pivotal HARMONY CTP trial
38% of participants enrolled in Russia per CDER review
Physician interview sample
16 Wakix prescribers interviewed; one near-fatality (drug-induced arrhythmia in healthy 42-year-old) found in that small sample
FOIA case ID 21248927
70-year-old male fatal heart attack on first day of titration to 35.6 mg, two weeks after starting Wakix
FDA H3-class drug approvals
Wakix is the first and only approved H3 antagonist/inverse agonist after 2+ decades of major pharma failures
FDA cardiotoxicity withdrawals
9 drugs withdrawn for cardiotoxicity; 2 (terfenadine, astemizole) in the histamine class

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns. Orange cells are present in this deck; neutral cells are not.

Precedents cited

  • Seldane (terfenadine) FDA withdrawal in 1997 for QT prolongation and torsades de pointes
  • Astemizole FDA withdrawal for cardiotoxicity
  • Aduhelm — recent CNS approval widely viewed as erroneous
  • Two-decade 100% failure rate of H3-receptor programs across major pharma

Composition what's on the 10 slides

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Notes

Formal Citizen Petition to the FDA under 21 C.F.R. §10.20/§10.30, signed by Kir Kahlon (Founder/CIO, Scorpion Capital). Companion regulatory filing to Scorpion's 366-page short report on Harmony Biosciences (HRMY) published March 28, 2023 — linked in Appendix A. Counts as follow_up to the main short report, but is itself a primary-material regulatory filing using the petition format rather than a deck. CEO-quote-contradiction flag is set because Scorpion quotes Harmony's own key speakers admitting they ignore label warnings ("those items are just warnings…you don't have to do anything") and cites Bioprojet's own 2012 paper disproving the histamine-narcolepsy mechanism. No charts, no SOTP — pure prose legal/scientific argument. Visual quality 1: plain Word-style memo.