Harrow Health(US:HROW)2022-05-09 00:32Financial Data and Key Metrics Changes - Revenues increased by 43% year-over-year to $22.1 million and nearly 10% sequentially, marking the seventh consecutive quarter of record financial metrics [13] - Gross profit reached a record $60.2 million, a 38% increase from the prior year and a 7% increase from the previous quarter [13] - Core gross margin for Q1 2022 was 75%, slightly down from 76% in the prior year [13] - Adjusted EBITDA was $4.9 million, up from $4.3 million in the prior year [13] - Core net income was $713,000, down from $2.4 million in Q1 2021, with core diluted net income per share at $0.03 compared to $0.09 in the same period last year [13] Business Line Data and Key Metrics Changes - The company is preparing for the re-launch of newly acquired branded products and the launch of AMP-100 in early to mid-2023, investing in commercial and distribution infrastructure [14] - Anticipated that revenues from branded pharmaceutical products will surpass those from compounded pharmaceutical products within 24 months post-FDA approval for AMP-100 [14] - Continued organic growth is expected, with the re-launch of IOPIDINE, MAXITROL, and MOXEZA, along with the development of MAQ-100 [16] Market Data and Key Metrics Changes - The market for AMP-100 is significant, with over 12 million procedures annually, and the company has a meaningful commercial presence in this space [15] - The company is engaged in potential transactions to expand its portfolio of ophthalmology formulations and products [15] Company Strategy and Development Direction - The company aims to shift a greater percentage of revenue from compounded products to branded products, with a focus on marketing and operational enhancements [38] - Investments are being made in market access and distribution, along with hiring key personnel for the branded products segment [30] - The company is optimistic about the upcoming launches and the potential for significant revenue growth from branded products [38] Management's Comments on Operating Environment and Future Outlook - Management believes 2022 will be a breakout year for the company, with strong operational results validating this outlook [13] - The enthusiasm for the company's near, medium, and long-term prospects is evident among employees, contributing to attracting high-caliber executives [43] - Confidence in the future is bolstered by the expected growth from both existing and new product launches [44] Other Important Information - The company is transitioning NDAs under its umbrella, which is a significant process involving regulatory affairs and market access work [36] - Visionology is being developed as a value-add platform, although it is not expected to generate substantial revenue immediately [24] Q&A Session Summary Question: Have you added any new accounts during the quarter? - The company continues to bring on new accounts every month, with the sales team performing exceptionally well [19] Question: What are the next steps for MELT-210? - MELT-210 has completed a successful pharmacokinetic study, and the team intends to approach the FDA for potential NDA filing [21] Question: Can you provide an update on the Visionology platform? - Visionology is being developed to provide value to customers, although it is not expected to be a major revenue generator [24] Question: Any areas of strength in organic growth from the existing product portfolio? - Growth was observed across all areas, particularly in chronic care formulations for managing dry eye disease [28] Question: What activities are being undertaken in preparation for the launch of branded products? - Investments are being made in market access, distribution, and hiring key personnel for the branded segment [30]