Analyst’s Disclosure: I/we have a beneficial long position in the shares of HROW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: Commentary presented is NOT individualized investment advice. Opinions offered here are NOT personalized recommendations. Readers ...

We came across a bullish thesis on Harrow, Inc. on MVC Investing’s Substack by M. V. Cunha. In this article, we will summarize the bulls’ thesis on HROW. Harrow, Inc.'s share was trading at $47.84 as of January 12th. HROW’s trailing and forward P/E were 9.64 and 44.25  respectively according to Yahoo Finance. massimofusaro/Shutterstock.com Harrow, Inc., an eyecare pharmaceutical company, engages in the discovery, development, and commercialization of ophthalmic pharmaceutical products. HROW has quietly ...

Company Overview - Harrow (HROW) is a rapidly growing ophthalmic pharmaceutical company focused on providing a wide range of eye care drugs in the United States [1]. Investment Philosophy - The investment approach reflects the teachings of renowned investors such as Warren Buffett and Charlie Munger, emphasizing a long-term value investment strategy [1]. Analyst Background - The analyst has a PhD in theoretical physics from UC Berkeley and has transitioned from a brief career in physics to investing, accumulating experience as an analyst at a billion-dollar fund before starting a small fund in 2009 [1].

Summary of Harrow (NasdaqGM:HROW) FY Conference Call - December 02, 2025 Company Overview - **Company**: Harrow Health, Inc. - **Industry**: Biopharmaceuticals, specifically focusing on ophthalmology and anesthesiology Key Points MELT Acquisition and Technology - The MELT acquisition, closed in mid-November, is seen as a strategic fit to expand into procedural sedation beyond ophthalmology, targeting markets like dental and plastic surgery [5][6][7] - The MELT-300 product aims to reduce opioid exposure in cataract surgeries, with over 90% of patients currently receiving IV fentanyl [6] - The company has a patent portfolio that supports both domestic and international markets [7] - A special protocol agreement (SPA) with the FDA is in place, with efficacy studies completed showing MELT-300's superiority over individual components [8] Commercialization Strategy - Harrow plans to leverage its established infrastructure in ophthalmology while seeking partnerships in non-ophthalmology markets [10][11] - The company has hired Frank Mullery, a former Mylan executive, to enhance its access to the hospital market [10] Product Pipeline - **MELT-210**: Positioned as an oral dissolving tablet for sedation, targeting a wide range of procedures and potentially tens of millions of use cases [12][14][15] - **Vevye**: A product for dry eye disease that has nearly doubled its market share in recent quarters due to a significant coverage win, allowing for easier patient access [16][18][20] - **IHEEZO**: A topical anesthetic for intravitreal injections, expected to generate around $50 million in revenue for the year, with a goal of capturing 10% market share by 2027 [27][28][29] - **TRIESENCE**: After a disappointing start, the product is showing signs of recovery with new commercial leadership and a focus on full-label promotion [30][31][32] Biosimilars Strategy - Harrow plans to enter the biosimilar market with ranibizumab and aflibercept, aiming to create a comprehensive solution for retinal practices [34][36] - The company expects to capture a modest market share, focusing on quality and service rather than competing aggressively with existing products [39][40] Access Programs - The Harrow Access for All program aims to ensure that patients have access to medications with minimal out-of-pocket costs, achieving over 90% coverage for key products [42][44] Business Development and M&A - The company is open to further business development and M&A opportunities, particularly if they can acquire valuable assets at favorable prices [45] Additional Insights - The company emphasizes a patient-centric approach in its product development and marketing strategies, aiming to improve patient experiences across its offerings [6][16][27] - Harrow's focus on building a comprehensive suite of products for surgical and retinal markets positions it well for future growth [35][36] This summary encapsulates the key insights from the conference call, highlighting Harrow's strategic initiatives, product developments, and market positioning within the biopharmaceutical industry.

Company Overview - Harrow, Inc. (HROW) is an emerging leader in FDA approved branded ophthalmic pharmaceuticals, having transitioned from an ophthalmic compounding pharmacy since its inception in 2015 [1] - The company currently holds approximately 35% market share in its niche, which is significantly larger than its competitors, estimated to be around 10 times their share [1] Investment Philosophy - The investment approach reflects principles similar to those of renowned investors Warren Buffett and Charlie Munger, focusing on a select group of companies with which the analyst has developed a long-standing familiarity [1] - The analyst emphasizes the importance of maintaining composure during market panics, suggesting that current market conditions present a favorable investment opportunity [1]

Core Insights - Harrow's revenue growth and expanding product portfolio have attracted the attention of Penn Capital Management, which acquired a new position in the company valued at approximately $15.7 million [1][2][10] Company Overview - Harrow operates as a specialty pharmaceutical company focused on the ophthalmic sector, offering a diversified portfolio of branded and compounded products [5][6] - The company's market capitalization is $1.5 billion, with a revenue of $250 million and a net income of -$5 million over the trailing twelve months (TTM) [4] Financial Performance - In the third quarter, Harrow reported a revenue increase of 45% to $71.6 million, with GAAP net income of $1 million and adjusted EBITDA reaching $22.7 million, nearly tripling from the prior year [10] - The company ended the quarter with $74.3 million in cash, enhancing its liquidity during a period of portfolio expansion [10] Strategic Positioning - Harrow's strategy includes direct product commercialization and strategic equity and royalty interests in innovative drug development, targeting ophthalmologists and specialty healthcare providers in the U.S. [6] - Recent strategic wins, such as formulary listings for VEVYE and the acquisition of Melt Pharmaceuticals, position the company for continued growth and optionality heading into 2026 [10][11] Market Context - As of the latest market close, Harrow shares were priced at $41.30, down 2% over the past year, underperforming the S&P 500, which increased by 13% in the same period [3]

Core Insights - Harrow, Inc. is a leading provider of ophthalmic disease management solutions in North America, focusing on a comprehensive portfolio of products for various eye conditions [2] Upcoming Events - Harrow management will participate in two investor conferences in December 2025: - BTIG 5th Annual Ophthalmology Day (Virtual) on December 1, 2025, at 8:30 AM EST [1] - Piper Sandler 37th Annual Healthcare Conference in New York on December 2, 2025, at 3:00 PM EST, which will be webcast live [1] Company Overview - Harrow offers solutions for conditions affecting both the front and back of the eye, including dry eye disease, age-related macular degeneration, cataracts, refractive errors, glaucoma, and other ocular surface and retina diseases [2] - The company is committed to providing safe, effective, accessible, and affordable medications to enhance patient compliance and improve clinical outcomes [2]

Core Viewpoint - Harrow has completed the acquisition of Melt Pharmaceuticals, enhancing its portfolio with innovative non-opioid, non-IV sedation therapies for medical procedures, particularly in ophthalmology and outpatient settings [1][2][3] Company Overview - Harrow is a leading provider of ophthalmic disease management solutions in North America, focusing on safe, effective, and affordable medications to improve patient outcomes [7] Acquisition Details - The acquisition of Melt Pharmaceuticals marks a strategic expansion for Harrow, allowing entry into the multi-billion-dollar procedural sedation and anxiety market [2][3] - Melt's product candidates, including MELT-210 and MELT-300, utilize the proprietary Zydis® ODT drug delivery platform, which is designed for rapid and effective sedation [1][2] Product Development - MELT-300 is a sublingual formulation combining midazolam (3mg) and ketamine (50mg), showing statistical superiority to midazolam alone in clinical trials [3][5] - The MELT-300 program has received a Special Protocol Assessment (SPA) from the FDA, confirming its Phase 3 study design and endpoints for future regulatory submission [5][6] Future Steps - Harrow plans to submit the NDA for MELT-300 in the first half of 2027, with potential FDA approval expected in the first half of 2028 [9] - The company aims to leverage its existing commercial infrastructure to facilitate the launch of MELT-300, initially targeting cataract and other ophthalmic procedures [9]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $71.6 million, a 45% increase year-over-year and a 12% sequential increase from Q2 2025 [12][13] - Adjusted EBITDA for Q3 was $22.7 million, with GAAP-based net income of $1 million [14] - For the first nine months of 2025, total revenue reached $183.2 million, with an updated full-year revenue outlook of $270-$280 million [13][17] Business Line Data and Key Metrics Changes - VEVYE generated approximately $22.6 million in revenue during Q3, a 22% increase from Q2 2025, and is expected to finish the year strong [14][15] - IHEEZO revenue for Q3 was $21.9 million, up 20% from Q2, with strong demand expected to continue into Q4 [15][16] - TRIESENCE and the specialty portfolio generated $6.9 million in revenue, showing a 33% sequential increase, with new strategies in place to reignite growth [16][30] Market Data and Key Metrics Changes - VEVYE captured 10.5% of the total dry eye market by the end of Q3, up 2.7 share points from the prior quarter [22] - IHEEZO's unit demand was up 47% year-over-year, indicating strong market resonance [25] - TRIESENCE is gaining traction in the retina market, with a 67% sequential increase in unit demand [28] Company Strategy and Development Direction - The company aims to become a leading U.S. ophthalmic company, with plans for four new product launches over the next two years [6][11] - A focus on building a scalable commercial infrastructure to support multiple product launches without heavy additional investment [6][11] - The acquisition of Melt Pharmaceuticals and the expansion of the Access for All program are key strategic moves to enhance growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall trajectory of the business, despite some areas underperforming due to seasonal factors [7] - The company anticipates a strong finish to 2025, with expectations for continued growth in 2026 driven by improved coverage and commercial investments [18][24] - Management is actively working to resolve licensing disputes in California, which could impact future revenue [11] Other Important Information - The company is preparing for the launch of new products, including BioViz, OpioViz, Biclovi, and Melt 300, which are expected to drive future growth [11][30] - The ImprimisRx business remains stable, generating approximately $20.1 million in revenue, but may face challenges due to ongoing regulatory disputes [17] Q&A Session Summary Question: Why was VEVYE prescription data not available this quarter? - Management decided to withdraw from certain reporting services to ensure accuracy and maintain competitive positioning [34][35] Question: Can you discuss the operating leverage achieved? - The company is seeing operating leverage from new revenue growth, with expectations for moderate increases in operating expenses as investments are made in commercial infrastructure [36][37] Question: What is the expected impact of VEVYE's coverage win on ASP? - Management anticipates that improved coverage will lead to a stabilization and potential increase in ASP, particularly as the ratio of covered prescriptions increases [39][40] Question: What proportion of cash-pay patients is expected to transition to insurance coverage? - While precise figures are not available, management believes that many cash-pay patients will transition to covered prescriptions due to favorable coverage wins [46][47] Question: What are the dynamics expected between Q3 and Q4 revenue? - Management expects Q4 to be strong, driven by volume growth across the portfolio, particularly from VEVYE and TRIESENCE [55][58]

Group 1: Market Overview - U.S. stock futures were mostly lower, with S&P 500 futures down approximately 0.2% on Tuesday [1] - Several stocks experienced significant declines in pre-market trading [2][4] Group 2: Outset Medical Inc - Outset Medical reported a quarterly loss of 69 cents per share, missing the analyst consensus estimate of a 66 cents loss [2] - The company's quarterly sales were $29.431 million, below the analyst consensus estimate of $30.880 million [2] - Following the disappointing results, Outset Medical shares fell 25.8% to $8.95 in pre-market trading [2] Group 3: Other Companies - Gemini Space Station Inc shares dipped 9.7% to $15.20 after disclosing third-quarter results [4] - CoreWeave Inc saw a decline of 9.2% to $95.90 following its third-quarter results [4] - Life360 shares declined 7.3% to $86.45 after announcing an agreement to acquire Nativo [4] - Century Aluminum Co fell 6% to $30.37 after posting weak quarterly earnings [4] - Beyond Meat Inc declined 6% to $1.26 following a wider-than-expected quarterly loss [4] - Harrow Inc shares fell 5.3% to $32.30 after reporting worse-than-expected quarterly sales [4] - Nanobiotix SA – ADR dropped 5.3% to $20.99 after a previous jump of 12% on Monday [4] - CleanSpark Inc declined 5.3% to $14.24 as it announced the upsize and pricing of a $1.15 billion convertible notes offering [4]