Harrow Health’s Strategic Expansion and Growth Potential in Branded Pharmaceuticals

Harrow Health (HROW) has received a new Buy rating, initiated by William Blair analyst, Lachlan Hanbury Brown.

Lachlan Hanbury Brown has given his Buy rating due to a combination of factors that highlight Harrow Health’s promising growth potential and strategic expansion into branded pharmaceuticals. The company has transitioned from its origins as a compounding pharmacy to acquiring a diverse portfolio of branded therapies, focusing on the ophthalmology sector. This shift is underscored by the successful launch and adoption of key products like Vevye, which addresses the growing market for dry eye disease with its unique formulation offering comfort and quick onset.
Additionally, Harrow’s expansion into the retinal procedure market with products such as Iheezo and Triesence further supports its growth trajectory. The company’s strategic advantage is bolstered by its in-house compounding pharmacy, ImprimisRx, which provides valuable market insights and formulation benefits. Despite the presence of financial obligations due in 2026, Brown believes Harrow’s strong business fundamentals will enable favorable refinancing. However, he acknowledges potential risks, including commercial, regulatory, and litigation challenges, which are important considerations for investors.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HROW in relation to earlier this year.