Kumar Budur
About Kumar Budur
Kumar Budur, M.D., M.S., age 54, is Executive Vice President and Chief Medical & Scientific Officer at Harmony Biosciences (HRMY), serving as Chief Medical Officer since May 2023 and assuming expanded responsibilities effective May 1, 2024 . He trained at Cambridge University (UK) and the Cleveland Clinic, completed a psychiatry residency and fellowships in neurophysiology and sleep medicine, is board certified in Psychiatry and Sleep Medicine, and earned a master’s in clinical research from Case Western Reserve University; he has published 45+ peer‑reviewed papers, edited four books, and led registration trials for two NDAs with involvement across four NDAs . Company performance during his tenure includes 2024 net product revenue of $714.7 million (+23% y/y) and net income of $145.5 million; the 2024 total shareholder return (TSR) implied value of a $100 initial investment was $93 versus $103 for the NASDAQ Biotech peer index .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Harmony Biosciences | Chief Medical Officer; EVP & Chief Medical & Scientific Officer | May 2023–present | Oversight of clinical programs; supports lifecycle management and pipeline execution |
| AbbVie Inc. | Executive Medical Director | Aug 2015–Feb 2022 | Led late discovery through post‑marketing studies; involved in four NDAs; led two registration trials and approvals |
| Takeda Pharmaceutical Co. | Roles with increasing responsibilities | Six years (dates not disclosed) | Advanced small molecules, biologics, and drug‑device programs across development stages |
External Roles
Not disclosed in the executive officer biography in the proxy statement for 2025 .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Annualized Base Salary ($) | $395,000 | $575,000 |
| Actual Salary Paid ($) | $440,251 | $555,147 |
| Target Bonus (% of Salary) | 40% | 50% (increased effective Jan 1, 2024) |
| Actual Bonus Payout (% of Target) | 123% | 123% |
| Actual Bonus Paid ($) | $207,018 | $207,018 |
| Other Cash (sign‑on/retention) | $100,000 sign‑on (subject to repayment terms) | — |
Performance Compensation
Annual Incentive Plan (2024)
| Metric | Weighting | Target | Actual | Payout Status |
|---|---|---|---|---|
| Net Product Revenue (WAKIX) | 25% | $710–$750 million for “Meets/Exceeds” levels | $714.7 million | Meets Expectations |
| Clinical Development Programs | 20% | Not numerically disclosed | Exceeds Expectations | Exceeds Expectations |
| Corporate Transaction Goals | 25% | Not numerically disclosed | Exceeds Expectations | Exceeds Expectations |
| Financial Health Goals | 25% | Stock performance vs peer group and NBI | Meets Expectations | Meets Expectations |
| Talent and Culture Goals | 5% | Not numerically disclosed | Exceeds Expectations | Exceeds Expectations |
| Total Company Achievement | — | — | 123% of target | 123% payout (Budur) |
Equity Awards and Vesting
| Grant Date | Instrument | Shares | Exercise Price ($) | Grant‑Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|---|
| 1/24/2024 | Stock Options | 42,500 | 30.69 | $880,366 | 25% on 1/24/2025; 75% over 12 quarterly installments thereafter, subject to continued employment |
| 1/24/2024 | RSUs | 8,750 | — | $268,538 | 25% on each of the first four anniversaries of 1/24/2024, subject to continued employment |
| 5/1/2024 | Stock Options | 75,000 | 30.27 | $1,539,750 | 25% on 5/1/2025; 75% over 12 quarterly installments thereafter, subject to continued employment |
| 5/1/2024 | RSUs | 75,000 | — | $2,270,250 | 25% on each of the first four anniversaries of 5/1/2024, subject to continued employment |
| 3/21/2022 | Stock Options | 75,000 (51,562 excercisable; 23,438 unexercisable at 12/31/2024) | 49.27 | — | 50% cliff at year 2, then 1/48 monthly for 24 months thereafter |
Option grant timing note: The 5/1/2024 option grant was approved April 29, 2024, effective May 1 (one business day after the Q1 earnings release), with only a 0.32% change in closing price across the disclosure window, mitigating spring‑loading concerns .
Equity Ownership & Alignment
Beneficial Ownership (as of March 17, 2025)
| Holder | Shares | % Outstanding |
|---|---|---|
| Kumar Budur | 109,598 (includes 108,593 shares underlying options vested/will vest within 60 days) | <1% |
Outstanding Equity Awards (as of December 31, 2024)
| Instrument | Grant Date | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | RSUs Unvested (#) |
|---|---|---|---|---|---|
| Options | 3/21/2022 | 51,562 | 23,438 | 49.27 | — |
| Options | 1/24/2024 | — | 42,500 | 30.69 | — |
| RSUs | 1/24/2024 | — | — | — | 8,750 |
| Options | 5/1/2024 | — | 75,000 | 30.27 | — |
| RSUs | 5/1/2024 | — | — | — | 75,000 |
- Anti‑hedging policy prohibits hedging and monetization transactions for directors, officers, employees, and specified consultants .
- Stock ownership guidelines (effective Jan 1, 2025): other executive officers must hold 3x base salary; RSUs (vested/unvested) count, options do not; compliance status for individuals is not disclosed .
Employment Terms
| Term | Details |
|---|---|
| Employment status | At‑will per offer letter; Chief Medical Officer since May 2023; EVP & Chief Medical & Scientific Officer effective May 1, 2024 |
| Offer letter economics | Base salary $395,000; target bonus 40% of salary; $250,000 sign‑on (paid in $150k + $100k installments) with after‑tax repayment obligation if voluntary resignation within 12 months of receipt |
| 2024 compensation adjustments | Base increased to $575,000 in May 2024 with EVP promotion; target bonus increased to 50% effective Jan 1, 2024 |
| Severance (change‑in‑control) | Participation in Separation Plan: lump‑sum equal to prorated target bonus + 0.5× highest annual base salary in prior 12 months + six months of healthcare; outplacement assistance; subject to release and restrictive covenants |
| Estimated CIC payout (as of 12/31/2024) | Cash $431,250; equity acceleration $3,350,437; continued healthcare $12,308; outplacement $7,500; total $3,801,495 (if terminated without cause/for good reason in CIC window) |
| Equity acceleration mechanics | 2020 Plan awards: double‑trigger vesting if terminated without cause within 12 months post‑CIC; Equity Incentive Plan options (older awards) accelerate on CIC (single trigger) |
| Restrictive covenants | Confidentiality and nondisparagement; non‑compete and non‑solicit effective during employment and for one year after termination under the Separation Plan |
| Clawback policy | Recovery of erroneously paid incentive compensation for Section 16 officers for awards received on/after Oct 2, 2023; includes time‑ and performance‑vesting equity |
Compensation Peer Group (Benchmarking)
The company engaged Pay Governance and used a 2024 peer group including Acadia, Axsome, Ionis, Neurocrine Biosciences, Supernus, Alkermes, Catalyst Pharma, Jazz Pharmaceuticals, PTC, Avadel, Intra‑Cellular, Marinus, and Sage Therapeutics (peer percentile target not disclosed) .
Performance & Track Record
- 2024 operational outcomes include 23% y/y net revenue growth ($714.7 million) for WAKIX, late‑stage programs in PWS and DM1, plans to initiate Phase 3 for Pitolisant HD in Q4’25, Phase 3 ZYN‑002 data expected Q3’25, acquisition of Epygenix (EPX‑100 in Phase 3 for Dravet and LGS), and entry into orexin‑2 agonists via Bioprojet .
- Financial position at year‑end 2024: $576.1 million in cash, cash equivalents and investments .
- Pay vs performance data: 2024 net income $145.5 million; TSR value of $100 investment at $93 vs peer index $103 .
Equity Vesting Cadence and Potential Selling Pressure
- RSU vesting schedules: 25% annually on each May 1 (for the 75,000 RSUs granted 5/1/2024) and each Jan 24 (for the 1/24/2024 RSUs); options vest 25% at first anniversary dates and then quarterly thereafter, creating regular release events that may align with tax‑withholding sales or discretionary liquidity needs .
- Insider hedging is prohibited; pledging is not specified in the policy disclosure .
Say‑on‑Pay & Shareholder Feedback
- 2023 say‑on‑pay approval: 97.6% in favor; the next advisory vote is scheduled for 2026 following a triennial frequency selection .
Investment Implications
- Pay‑for‑performance alignment: Budur’s mix is heavily equity‑based (options and RSUs) with cash incentives tied to revenue, clinical, transaction, and financial health goals; 2024 payouts reflect achievement above target (123%) and support alignment with operating outcomes .
- Retention and change‑in‑control economics: Separation Plan provides moderate cash severance (0.5× salary plus prorated bonus) but substantial equity acceleration upon CIC‑related termination ($3.35 million as of 12/31/2024), balancing retention with flexibility and indicating significant equity “at‑risk” exposure .
- Trading signals: Predictable RSU/option vesting dates (May 1 and Jan 24 anniversaries; quarterly option vesting thereafter) can create recurring supply from tax‑withholding or discretionary sales; monitoring Form 4 filings around these dates is prudent .
- Governance risk mitigants: Anti‑hedging, clawback, and ownership guidelines (3× salary for executives) reduce misalignment risk; absence of tax gross‑ups and use of an independent consultant further supports shareholder‑friendly design .