Private Equity-Style Fund Buys $15.7 Million in Harrow Stock as Revenue Jumps 45%

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]