Harrow (HROW) FY Conference Transcript

Summary of Harrow (HROW) FY Conference - August 13, 2025 Company Overview - Company: Harrow (HROW) - Industry: Ophthalmology and Biopharmaceuticals Key Points and Arguments Acquisition and Product Development - Harrow acquired commercial rights to biosimilar drugs referencing Lucentis and Eylea from Sensome Bioethics, indicating a strategic focus on the retina market [3][4] - The company plans to launch these biosimilars in mid-2026, with expectations of significant clinical synergy with their existing anesthetic product, iHizo [6][7] - Harrow also acquired US commercial rights to Biclovy, a novel steroid for postoperative inflammation, which is differentiated by its robust clinical efficacy and safety profile [21][22][24] Market Position and Competitive Landscape - The biosimilar market for Lucentis and Eylea is competitive, with several existing products; however, Harrow's approach is described as bespoke and customer-oriented, leveraging existing relationships with retina clinics [9][10] - Harrow aims to capture market share in the wet AMD and DME markets, targeting both low-cost options and branded products, with each percentage point of market share representing over $80 million in revenue opportunity [12][13] Financial Outlook and Revenue Growth - The company does not anticipate significant revenue contributions from the new biosimilars in 2026 but expects more substantial contributions in 2027 and 2028 [15] - iHizo reported $18.3 million in revenue for Q2, showing a 25% sequential growth, with strong demand in the retina market [30][31] - The existing product portfolio, including Veevae, is experiencing rapid growth, with a current market share of 7.8% in the US dry eye market, aiming to become the number one prescribed cyclosporine [25][26][28] Regulatory and Market Access - The reimbursement landscape for biosimilars is favorable, with established product-specific Q codes for reimbursement [14] - Harrow emphasizes the importance of coverage, reporting low rejection rates for claims related to iHizo and Triassence, which enhances market access [36][38] Future Prospects and Strategic Goals - Harrow is focused on maintaining a stable presence in the market while exploring additional acquisitions to enhance its product portfolio [50][52] - The company is optimistic about the upcoming launch of MELT 300, expected in 2027, which targets sublingual sedation for cataract surgery [44][47] - Upcoming catalysts include the launch of BioViz and continued growth of existing products, with an investor and analyst day scheduled for September 26, 2025, to discuss these developments [56][57] Additional Important Content - The company is committed to patient-first initiatives, welcoming any new products that can benefit patients in the competitive anti-VEGF market [17][18][20] - Harrow's in-premise Rx business is described as stable and cash-generating, with plans to transition more products to FDA-approved status [39][41][43]