Core Viewpoint - Harrow (HROW) reported a quarterly loss of $0.38 per share, significantly missing the Zacks Consensus Estimate of $0.02, representing an earnings surprise of -2,000% [1] - The company's revenues for the quarter were $47.83 million, falling short of the Zacks Consensus Estimate by 19.88%, but showing an increase from $34.59 million year-over-year [2] Financial Performance - Harrow's loss per share increased from $0.28 a year ago to $0.38 this quarter, indicating a decline in financial performance [1] - The company has surpassed consensus EPS estimates two times over the last four quarters, but missed revenue estimates in the latest quarter [2] Stock Performance - Harrow shares have declined approximately 26.7% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current Zacks Rank for Harrow is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $68.63 million, and for the current fiscal year, it is $0.47 on revenues of $286.4 million [7] - The trend of estimate revisions for Harrow is mixed, which could change following the recent earnings report [6] Industry Context - The Medical - Drugs industry, to which Harrow belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Investor Presentation | May 2025 Safe Harbor This presentation contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Harrow, Inc. (the "Compan ...

Revenue and Growth - Total revenues for the three months ended March 31, 2025, were $47,831,000, an increase of $13,244,000 compared to $34,587,000 for the same period in 2024[122]. - Revenues from branded products totaled $27,780,000 for the three months ended March 31, 2025, compared to $13,869,000 during the same period in the prior year, reflecting strong growth in branded ophthalmology products[122]. Profitability and Expenses - Gross profit for branded products was $19,599,000 with a gross margin of 70.6% for the three months ended March 31, 2025, compared to a gross profit of $10,191,000 and a gross margin of 73.5% in 2024[124]. - Selling, general and administrative expenses increased to $40,513,000 for the three months ended March 31, 2025, up by $11,700,000 from $28,813,000 in 2024, primarily due to increased seasonal expenses and new hires[127][128]. - Research and development expenses rose to $3,026,000 for the three months ended March 31, 2025, an increase of $877,000 compared to $2,149,000 in 2024, driven by expanded product development efforts[130]. Cash Flow and Liquidity - Cash on hand as of March 31, 2025, was $66,726,000, an increase from $47,247,000 at December 31, 2024, indicating improved liquidity[133]. - Net cash provided by operating activities for the three months ended March 31, 2025, was $19,668,000, a significant increase from $(4,628,000) in the same period of 2024, primarily due to a decrease of $39,196,000 in accounts receivable[137]. - Net cash used in investing activities during the same period was $(212,000), compared to $(110,000) in 2024, mainly for equipment and software purchases[138]. - Net cash provided by financing activities was $23,000 in Q1 2025, contrasting with $(809,000) in Q1 2024, attributed to proceeds from the exercise of stock options[139]. Debt and Financing - As of March 31, 2025, the company had $107,500,000 outstanding under the Oaktree Loan and $75,000,000 in 2026 Notes, with maturity dates in January and April 2026, respectively[141]. - The company is in discussions to refinance the Oaktree Loan and 2026 Notes, with management believing it is probable to secure refinancing based on collateral strength and expected cash flows[141]. - The company plans to refinance its Oaktree Loan and 2026 Notes during 2025, with expectations of maintaining sufficient liquidity for operations and capital expenditures for at least the next 12 months[134][135]. - The company may need significant additional capital for future operations and could seek financing through various sources, including equity or debt financings, which may dilute existing stockholders[142]. Interest Expense and Risk - Interest expense, net increased to $6,548,000 for the three months ended March 31, 2025, compared to $5,415,000 for the same period in 2024, primarily due to a higher outstanding principal amount of debt[131]. - Interest rate risk related to the Oaktree Loan is based on SOFR plus a 6.5% spread, with a hypothetical 100 basis points increase in SOFR potentially increasing interest expense by $1,075,000 annually[147]. Strategic Initiatives - The company initiated Project Beagle to transition approximately 25,000 ImprimisRx patients from compounded formulations to FDA-approved products, aiming to streamline operations and reduce reliance on compounding[119]. - The VEVYE Access for All program was launched to enhance patient access to VEVYE at an out-of-pocket cost of $59 or below, aiming to alleviate treatment obstacles for dry eye patients[118].

Revenue Growth - First-quarter 2025 revenues reached $47.8 million, a 38% increase from $34.6 million in the same quarter last year[1] - VEVYE revenues grew 35% quarter-over-quarter, from $16.0 million in Q4 2024 to $21.5 million in Q1 2025[1] - The company expects to achieve over $280 million in revenue for 2025, with accelerating revenues anticipated in the second half of the year[2] - VEVYE is projected to become the largest revenue-generating product, with expectations of reaching 9-figure annual revenue[7] - TRIESENCE is expected to be among the top three revenue-generating products in 2025, supported by recent market access wins[13] - The number of accounts ordering TRIESENCE has more than doubled since the beginning of the year, indicating strong market adoption[23] - The VAFA program has led to a more than 4X increase in NRx volumes for VEVYE and a 4X increase in weekly prescribers[11] - Harrow's specialty branded product portfolio is expected to contribute steadily to overall revenue as the year progresses[26] Financial Performance - Revenues for Q1 2025 were $47.8 million, a 38% increase from $34.6 million in Q1 2024[50] - GAAP net loss for Q1 2025 was $(17.8) million compared to $(13.6) million in Q1 2024, with core net loss at $(13.6) million versus $(9.8) million[52] - Cash flow from operations totaled $19.7 million in Q1 2025, driven by the collection of accounts receivable[44] - GAAP gross margins were 68% in Q1 2025, down from 69% in Q1 2024, while core gross margins decreased to 75% from 76%[53] - Selling, general and administrative costs rose to $40.5 million in Q1 2025 from $28.8 million in Q1 2024, primarily due to seasonal expenses and new hires[51] - Adjusted EBITDA for Q1 2025 was a loss of $(2.0) million compared to a gain of $227,000 in Q1 2024[52] - The impact of tariffs on gross margins is projected to be minimal, estimated at approximately 0.52% for 2024[42] Profitability and Losses - Operating loss increased to $(11,232,000) in Q1 2025 from $(6,928,000) in Q1 2024, reflecting a 62.5% increase in losses[75] - Loss before taxes for Q1 2025 was $(17,780,000), up from $(13,565,000) in Q1 2024, marking a 30.5% increase[75] - Net loss for Q1 2025 was $(17,780,000), compared to $(13,565,000) in Q1 2024, which is a 30.5% increase[75] - Basic and diluted loss per share for Q1 2025 was $(0.50), compared to $(0.38) in Q1 2024, indicating a decline of 31.6%[75] - Core results showed a gross profit of $36,087,000 for Q1 2025, compared to $26,174,000 for Q1 2024, reflecting a 37.9% increase[75] - Core basic and diluted loss per share improved to $(0.38) in Q1 2025 from $(0.28) in Q1 2024[75] Operational Efficiency - The company expects continued growth across its branded portfolio and aims to enhance profitability through operational efficiencies[54] - The company continues to focus on improving operational efficiency and reducing losses in future quarters[75] - As of March 31, 2025, cash and cash equivalents totaled $66.7 million, with accounts receivable at $77.1 million[53] - The company is expanding its specialty distribution network, including agreements with major private equity-owned retina groups[19] - Ongoing discussions are in place to refinance or repay a portion of the $222.75 million in outstanding debt[37]

Core Insights - Nordic Pharma, Inc. has partnered with Harrow to launch an authorized generic of Maxitrol, which treats bacterial eye infections, with annual sales of $20.8 million in the U.S. as of January 2025 [1][2]. Company Overview - Nordic Group B.V. is a medium-sized international pharmaceutical company focused on specialty products, particularly in Eye Care, Rheumatology, and Women's Health, with a strategy of targeted developments and acquisitions [3]. - Nordic Pharma, Inc. leverages partnerships with global biopharmaceutical companies to bring biotechnology-derived medicines and advanced manufacturing technologies to market [5]. Industry Context - Harrow, a leading eyecare pharmaceutical company, is dedicated to the discovery and commercialization of innovative ophthalmic products, making them accessible and affordable to millions of patients in North America [6].

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $66.8 million, an 84% increase compared to Q4 2023 and a 36% sequential increase [7] - Full year 2024 revenues increased by 53% to approximately $199.6 million, with adjusted EBITDA rising 43% to $40.3 million [7] - Q4 net income was approximately $6.8 million, with core gross margins reaching 84% for Q4 and 80% for the full year 2024 [7] Business Line Data and Key Metrics Changes - IHESO achieved a 43% increase in unit volume in Q4, generating $23 million in revenue, accounting for 34% of total revenues [9] - vVy prescriptions increased by 44% in Q4, marking a successful first year since its launch [10] - Triessence had minimal contribution in Q4 but is expected to drive revenues significantly starting in Q2 2025 due to recent market access wins [8][20] Market Data and Key Metrics Changes - Demand for key products like IHESO and vVy remains strong, with unit demand for both increasing by over 40% compared to the previous quarter [7] - The company is focusing on expanding its market share in the U.S. dry eye market, which is estimated to have a potential of 30-35 million patients, with only a small fraction currently on therapy [31] Company Strategy and Development Direction - The company aims to leverage its strong product portfolio and market access programs to drive growth, particularly through the vVy Access For All initiative [19][32] - A strategic supply and development agreement has been signed for Triessence, with plans for lifecycle management and a next-generation version to be submitted for FDA approval by 2027 [21] - The company is focused on maintaining a strong commercial team and innovative market access strategies to enhance product availability and affordability [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding internal forecasts for 2025, particularly with the anticipated contributions from Triessence and the vVy Access For All program [8][20] - The company is optimistic about its growth trajectory, citing a strong demand for its products and a commitment to reducing barriers for patients [30][35] - Management highlighted the importance of operating leverage and recurring revenue streams as key drivers for future financial performance [60][61] Other Important Information - The company has transitioned to a new auditing firm, which caused delays in filing its Form 10-K, but management is committed to avoiding such delays in the future [6] - The company plans to stop reporting prescription data to IQVIA, which may affect the accuracy of market data [18] Q&A Session Summary Question: Can you explain the significant gross to net improvement for vVy? - Management confirmed that vVy revenue more than tripled, with improved average selling price (ASP) due to fewer co-pay buy downs and increased demand [25][26] Question: What are the expectations for vVy in 2025? - Management indicated that vVy is on track to more than double in 2025, supported by the vVy Access For All program [29][30] Question: What is the outlook for EBITDA in 2025? - Management expects significant operating leverage and cash flow conversion from adjusted EBITDA, with a focus on managing operating expenses effectively [37][40] Question: Can you elaborate on the need for extended payment terms with distributors? - Extended payment terms are tied to the introduction of new buy and bill products, allowing end users to complete their revenue cycle before payment is requested [44][46] Question: What are the commonalities in metro markets where vVy has a strong market share? - Management noted that access remains a key issue, and they are working to reduce barriers for patients and prescribers [47][48] Question: What is the timeline for the next regulatory milestone for MELTS 300? - The NDA filing is expected around this time next year, following the completion of ancillary studies [94][95] Question: Does quarterly revenue include distributor stocking? - Revenue recognition is based on end-user demand, with Q4 benefiting from increased demand for vVy and IHESO [96][98]

Core Viewpoint - Harrow, Inc. is conducting its Q4 2024 earnings conference call, indicating a focus on financial performance and future outlook [1][3]. Group 1: Company Overview - Harrow, Inc. is listed on NASDAQ under the ticker HROW [1]. - The earnings conference call is scheduled for March 28, 2025, at 8:00 AM ET [1]. Group 2: Participants - The call features key company participants including Jamie Webb (Director of Communications & IR), Mark Baum (CEO), and Andrew Boll (CFO) [1]. - Various analysts from firms such as Craig Hallum, Lake Street Capital Markets, and B. Riley Securities are participating in the Q&A session [1]. Group 3: Forward-Looking Statements - The company’s remarks may include forward-looking statements, which are subject to risks and uncertainties beyond Harrow's control [3]. - Risks include the ability to commercially launch FDA-approved products and the timely approval of certain drug candidates [3].

Group 1 - Harrow, Inc. (NASDAQ: HROW) has been identified as a speculative trade opportunity after experiencing a selloff, previously noted in the high $30s range [2] - The investment strategy emphasizes a blended approach of trading and income generation, aiming to enhance savings and retirement timelines [1] - The investment group, BAD BEAT Investing, has a proven track record, including a notable call to sell everything and go short in February 2020, maintaining an average position of 95% long and 5% short since May 2020 [2] Group 2 - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades, providing in-depth research with clear entry and exit targets [2] - The team consists of seven analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, sharing both long and short trade ideas [2]

Investor Presentation | March 2025 Safe Harbor This presentation contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Harrow, Inc. (the "Comp ...

Core Viewpoint - Harrow (HROW) reported quarterly earnings of $0.25 per share, significantly exceeding the Zacks Consensus Estimate of $0.11 per share, and showing a turnaround from a loss of $0.27 per share a year ago, indicating a strong performance in the recent quarter [1][2] Financial Performance - The company achieved revenues of $66.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.24%, and showing a substantial increase from $36.36 million in the same quarter last year [2] - Over the last four quarters, Harrow has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Harrow shares have declined approximately 17.6% since the beginning of the year, contrasting with the S&P 500's decline of 2.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $64.33 million, while for the current fiscal year, the estimate is $0.54 on revenues of $294.58 million [7] - The trend of estimate revisions for Harrow is mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Drugs industry, to which Harrow belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]