Harrow Health ((HROW)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Harrow Health’s recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and successful product performances, particularly with VEVYE and IHEEZO. The company celebrated significant strategic coverage wins for VEVYE, although it acknowledged challenges with TRIESENCE’s performance and potential issues with ImprimisRx that could impact future revenues.
Strong Revenue Growth
Harrow Health reported a total revenue of $71.6 million for the third quarter, marking a remarkable 45% increase over the same period in 2024 and a 12% sequential increase from the second quarter of this year. This impressive growth underscores the company’s successful strategies in expanding its market presence and product offerings.
VEVYE and IHEEZO Performance
The company’s key products, VEVYE and IHEEZO, demonstrated strong performances, with VEVYE achieving a 22% quarter-over-quarter revenue growth and IHEEZO delivering a 20% growth. Both products are on track for a record year, reflecting their increasing acceptance and demand in the market.
New Coverage Wins for VEVYE
Harrow Health secured agreements with leading national payers for VEVYE, which will be listed on multiple new formularies with a preferred product status starting January 2026. This strategic win is expected to drive prescription growth and enhance pricing stability for VEVYE.
Strategic Expansion
The company is preparing for the launch of four new products over the next three years, including BYOOVIZ, OPUVIZ, BYQLOVI, and MELT-300. This strategic expansion is aimed at diversifying Harrow’s product portfolio and sustaining its growth momentum.
Adjusted EBITDA and Operating Leverage
Harrow Health reported an adjusted EBITDA of $22.7 million for the third quarter. The company’s operating expenses have remained relatively stable quarter-to-quarter, demonstrating effective operating leverage and efficiency in managing new revenue gains.
Underperformance of TRIESENCE
Despite the overall positive performance, TRIESENCE and the broader specialty branded portfolio underperformed this year, including in the third quarter. This underperformance highlights areas where Harrow may need to focus additional resources and strategies.
ImprimisRx Challenges
Harrow Health faces potential challenges with ImprimisRx, particularly if a dispute with the California Board of Pharmacy is not resolved, which may slightly impact fourth-quarter revenue. Additionally, an inventory shortage in October resulted in a one-time revenue decrease of about $4 million to $6 million.
Forward-Looking Guidance
Harrow Health updated its full-year revenue guidance to a range of $270 million to $280 million, reflecting a more conservative financial outlook. The company remains optimistic about its long-term growth trajectory, driven by the planned launch of new products and significant coverage wins for VEVYE. Harrow’s strategic focus on expanding market access and operational efficiency positions it well for sustained growth.
In conclusion, Harrow Health’s earnings call highlighted strong revenue growth and successful product performances, particularly with VEVYE and IHEEZO. Despite some challenges with TRIESENCE and ImprimisRx, the company’s strategic initiatives and forward-looking guidance suggest a positive outlook for sustained growth and market expansion.