Core Thesis - Harrow, Inc. (HROW) presents a bullish investment opportunity due to its diverse portfolio, strong revenue growth, and strategic positioning in the ophthalmic market [1][6][7] Company Overview - Harrow Pharmaceuticals is a U.S.-based company focused on ophthalmology, operating in three main areas: FDA-approved drugs, compounded formulations, and equity stakes in emerging innovators [2] - The company's portfolio includes treatments for dry eye disease, glaucoma, ocular inflammation, post-surgical recovery, and retina therapies, making it a "full-spectrum" player in the U.S. ophthalmic market [2] Product Highlights - Key products include VEVYE for dry eye, projected to generate over $100 million in FY25, IHEEZO, the first new branded ocular anesthetic in 14 years, expected to reach over $50 million in FY25, and TRIESENCE, a corticosteroid with patent protection until 2029 [3] - HROW is expanding into the retina category with products like BYOOVIZ and OPUVIZ, while its ImprimisRx compounding division provides stable cash flow and enhances operational efficiency [3] Financial Performance - HROW reported $116.6 million in revenue for the first half of FY25 and anticipates $280 million for the full fiscal year, with gross margins improving from 68% to 74% [4] - EBITDA is expected to grow from approximately 26% in FY25 to 38% in FY27, supported by debt refinancing and $250 million in senior notes [4] Valuation and Growth Potential - Analysts project HROW's revenue to reach $529 million by 2027, with management targeting $1 billion, indicating a potential upside of 3x to 5x over three years [5] - The combination of high-growth branded products, stable cash-generating operations, and strategic equity stakes presents a unique investment opportunity ahead of the upcoming Investor Day [5]

Summary of Harrow's 2025 Investor Day Company Overview - **Company**: Harrow (NasdaqGM:HROW) - **Industry**: Ophthalmic pharmaceuticals - **Event**: Inaugural Investor and Analyst Day held on September 26, 2025 Key Points and Arguments Vision and Market Position - Harrow aims to become the next great U.S. ophthalmic company, following the legacy of Alcon and Allergan, which were founded over 77 years ago [6][16] - The company has built the largest and most diversified portfolio of prescription ophthalmic products in North America with only $1 million of initial capital [7] Business Strategy - Harrow's growth strategy is based on four pillars: founder-led management, a profitable base business, a strong team, and a bright future with multiple product launches [9][10] - The company has been active in ophthalmic M&A, acquiring approximately 17 branded products over the last five years [7] Product Pipeline and Future Launches - Upcoming product launches include TRIESENCE in Q4 2025, BICLOVI and BioViz in 2026, and Opuviz and Melt 300 in 2027 [9][10] - Melt 300 is expected to generate over $100 million in annual revenue post-FDA approval, with a clear path to market due to existing commercial relationships [12][13] Financial Performance and Projections - Harrow anticipates over $280 million in revenue for 2025, with a medium-term goal of $250 million in quarterly revenue by Q4 2027 [22][25] - The company expects gross margins in the low to mid-80s and operating margins in the 30 to 40% range at projected revenue levels [26] Recent Debt Financing - Harrow successfully refinanced $250 million in unsecured notes, lowering its cost of capital and extending its debt maturity profile [19][20] - The refinancing is expected to reduce cash-based interest expenses by approximately $3 million annually [21] Product Development Philosophy - Harrow employs a disciplined approach to product development, focusing on de-risked assets with high probabilities of success [27][28] - The company has three key pipeline products: Melt 300, a prefilled syringe of TRIESENCE, and CR01, a conjunctival delivery device for ocular cancer [29][30] Melt 300 Overview - Melt 300 is a sublingual tablet designed for procedural sedation, targeting a market with over 100 million potential procedures [35][37] - The product aims to eliminate the need for IV sedation and opioids, addressing significant patient and procedural needs [41][42] Dry Eye Market Opportunity - The dry eye market presents a significant opportunity, with 16 million patients in the U.S. and only 8% optimally controlled [56] - Harrow's VEVYE is positioned as the leading therapy in this space, with a unique delivery mechanism that enhances efficacy [62][63] Additional Important Content - Harrow emphasizes its commitment to corporate citizenship, having supported approximately 17,000 patients in 38 countries in 2024 [14] - The company acknowledges the potential for failure but remains focused on long-term growth and learning from mistakes [14][16] - Harrow's leadership team includes experienced professionals from various sectors, enhancing its operational capabilities [3][4][53] This summary encapsulates the critical insights and strategic directions discussed during Harrow's 2025 Investor Day, highlighting the company's commitment to growth, innovation, and market leadership in the ophthalmic sector.

Financial Performance and Goals - Harrow's consolidated revenues have grown significantly, from $48.871 million in 2020 to $199.614 million in 2024, with a projected $280 million in 2025[38] - The company aims for $250 million+ in quarterly revenue by Q4 2027, driven by Surgical + Rare & Specialty Products ($75M), Retina Portfolio ($140M), ImprimisRx ($15M+), and Dry Eye Disease ($20M)[40] - ImprimisRx's revenue for compounded products reached $41.519 million in H1 2025[351] Product Pipeline and Acquisitions - Harrow acquired BYQLOVI for $0.5 million + Royalty[16] - Harrow is planning to file an NDA for MELT-300 in H1 2027, with a potential launch in H2 2028[50] - Harrow is developing a next-generation TRIESENCE with a goal to file an NDA by the end of 2027[53] Market and Commercial Strategy - VEVYE has captured 7.8% of the total Dry Eye Disease (DED) market as of Q2 2025, an increase of 2.6% from Q1 2025[120] - Over 7 million ocular surgeries are performed annually in the US, representing a significant market for Harrow's surgical portfolio[192] - Harrow expects to launch BYOOVIZ in mid-2026 and OPUVIZ in the second half of 2027[233, 234] Debt Refinancing - Harrow refinanced $240 million of unsecured notes with a coupon of 8.625%, resulting in $10 million of new cash to the balance sheet and $40 million undrawn revolver[33]

Financial Performance and Growth - Harrow expects 2025 revenue to be more than $280 million[8] - Adjusted EBITDA in Q2 2025 was $17006 thousand[15] - Harrow had $52963 thousand in cash and cash equivalents as of June 30, 2025[16] Product Portfolio and Market Position - VEVYE experienced 66% Q/o/Q Rx volume growth[9, 33] - VEVYE has captured 78% of the total DED market as of Q2 2025, an increase of 26% from Q1 2025[38] - IHEEZO saw a 25% growth in unit demand in Q2 2025 vs Q1 2025[9] - TRIESENCE experienced 32% growth in Q2 2025 vs Q1 2025[9] Strategic Initiatives and Acquisitions - Harrow acquired the exclusive U S commercial rights for BYQLOVI in June 2025[8] - Harrow acquired the exclusive U S rights to Samsung Boepis ophthalmology biosimilars pipeline, including BYOOVIZ and OPUVIZ in July 2025[8] - In August 2025, Harrow expands VAFA program capacity with a strategic alliance with Apollo Care[8]

Core Insights - Harrow, a leading provider of ophthalmic disease management solutions in North America, is set to hold its Investor & Analyst Day on September 26, 2025, in New York, which will also be available via live webcast [1][2] Company Overview - Harrow offers a comprehensive portfolio of products addressing various ocular conditions, including dry eye disease, age-related macular degeneration, cataracts, glaucoma, and other retinal diseases [7] Event Details - The Investor & Analyst Day will feature presentations from Harrow's leadership team, covering the company's commercial portfolio, pipeline, and long-term vision, along with insights from key opinion leaders in the field [2][5] - The preliminary agenda includes topics such as Harrow's financial update, pipeline products, and expert perspectives on procedural sedation and specific ophthalmic conditions [5] Featured Speakers - Notable physician speakers include Dr. Paul Karpecki, Dr. Raj Patel, Dr. Seenu Hariprasad, and Dr. Maggie Jeffries, each bringing extensive experience in various areas of ophthalmology [3][4] Webcast Information - A live webcast of the event will be available, along with a replay and presentation materials posted on Harrow's investor relations page [6]

Financial Performance & Growth - Harrow expects 2025 revenue to be more than $280 million[9] - In Q2 2025, Adjusted EBITDA was $17006 thousand[16] - Harrow had $52963 thousand in cash and cash equivalents as of June 30, 2025[17] Product Portfolio & Market Position - VEVYE showed 66% Q/o/Q Rx volume growth[10, 34] - VEVYE captured 78% of the total DED market in Q2 2025, an increase of 26% from Q1 2025[39] - IHEEZO experienced 25% growth in unit demand in Q2 2025 vs Q1 2025[10] - TRIESENCE showed 32% growth in Q2 2025 vs Q1 2025, with Q4 2025 expansion to a new market[10] Strategic Initiatives & Acquisitions - Harrow expanded the VAFA program capacity with a strategic alliance with Apollo Care in August 2025[9] - Harrow acquired the exclusive U S rights to Samsung Bioepis ophthalmology biosimilars pipeline, including BYOOVIZ (Lucentis) & OPUVIZ (Eylea) in July 2025[9] - Harrow acquired the exclusive U S commercial rights for BYQLOVI in June 2025, planning a launch in Q1 2026[9, 46]

Financial Performance and Projections - 2025 revenue is expected to be more than $280 million[7] - Adjusted EBITDA for 2024 was $40327 thousand[10] - Consolidated revenues for 2024 were $199614 thousand[10] - ImprimisRx generated $83499 thousand in revenues in 2024[26] Product Launches and Performance - VEVYE Access for All launched in mid-March 2025, leading to a fourfold increase in weekly new prescriptions and prescribers in the first seven weeks[8] - IHEEZO customer unit demand in Q1 2025 reached 38940[14] - VEVYE quarterly prescriptions in Q1 2025 were 72017[17] Strategic Investments and Developments - Harrow holds a 46% ownership in Melt Pharmaceuticals[8] - Melt Pharmaceuticals' MELT-300 showed positive Phase 3 efficacy results, with potential FDA approval and launch in Q1 2027[8] - TRIESENCE has pass-through status granted by CMS effective April 1, 2025[23]

Financial Performance - Revenues for Q4 2024 reached $66.8 million, and for the full year 2024, revenues were $199.6 million[7] - GAAP net income for Q4 2024 was $6.8 million, while the GAAP net loss for the full year 2024 was $(17.5) million[7] - Core net income for Q4 2024 was $11.4 million, and the core net loss for the full year 2024 was $2.1 million[7] - Adjusted EBITDA was $22.5 million for Q4 2024 and $40.3 million for the full year 2024[7] - Gross margin was 79% for Q4 2024 and 75% for the full year 2024[7] - Core gross margin was 84% for Q4 2024 and 80% for the full year 2024[7] - Harrow projects consolidated revenues of $280 million for 2025[9] Product Performance - IHEEZO quarterly customer unit demand increased sequentially, reaching 49,130 units in Q4 2024[13] - VEVYE quarterly prescriptions also increased, reaching 63,925 in Q4 2024[16] ImprimisRx - ImprimisRx revenues were $83.499 million in 2024[24] Melt Pharmaceuticals - Harrow owns 46% equity ownership in Melt Pharmaceuticals[27] - Positive topline Phase 3 clinical data for MELT-300 was reported in Q4 2024[29]