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Harrow Health Inc (HROW)
NASDAQ:HROW
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Harrow Health
(NASDAQ:HROW)
Rating:60Neutral
Price Target:
$33.00
▲(5.87%Upside)
Positive Factors
Market Strategy
The company's Retina Pivot marketing strategy has been successful, and IHEEZO customer unit demand volume increased 43% sequentially.
Product Adoption
The company's product Vevye has had good adoption and impressive refill rates, supporting a long and durable growth profile in the market for dry eye disease.
Revenue Growth
Management reiterated 2025 revenue target of over $280M, which would represent a growth rate of over 40% in 2025.
Negative Factors
Earnings Performance
Net loss was $17.8M, or ($0.50) per share, missing estimated income of $1.5M.
Financial Risks
The company faces risks including commercial, regulatory, and financing risks, as well as litigation risk from its compounding business.
Regulatory Risks
Risks include lower-than-projected market uptake of products, inability to develop and secure regulatory approval of pipeline products, inability to acquire new products, inability to service $216M outstanding debt, and potential dilution risk.
Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)471.29K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth53.49%
EPS Growth33.18%
CountryUS
Employees382
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.50
Shares Outstanding36,699,554
10 Day Avg. Volume493,367
30 Day Avg. Volume471,293
Financial Highlights & Ratios
PEG Ratio1.20
Price to Book (P/B)14.88
Price to Sales (P/S)0.00
P/FCF Ratio-66.80
Enterprise Value/Market Cap0.44
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda11.52
Forecast
1Y Price Target
$60.75Price Target Upside94.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Harrow Health Business Overview & Revenue Model
Company DescriptionHarrow Health, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business; and DEXYCU for the treatment of post-operative inflammation. The company also holds equity interests in Surface Ophthalmics, Inc., a clinical-stage pharmaceutical company that focuses on development and commercialization of therapeutics for ocular surface diseases; Melt Pharmaceuticals, Inc., a clinical-stage pharmaceutical company that focused on the development and commercialization of proprietary non-intravenous, sedation, and anesthesia therapeutics for human medical procedures in hospital, outpatient, and in-office settings; and Eton Pharmaceuticals, Inc., a commercial-stage pharmaceutical company that engages in developing and commercializing drug products. Harrow Health, Inc. owns royalty rights in four clinical stage drug candidates being developed by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in San Diego, California.
How the Company Makes MoneyHarrow Health generates revenue through the sale of its ophthalmic pharmaceutical products. The company manufactures and distributes a variety of eye care medications, which are sold to healthcare providers, clinics, and other medical institutions. In addition to direct sales, Harrow Health benefits from strategic partnerships and licensing agreements that expand its market reach and product offerings. The company also engages in research and development to continuously enhance its product line, aiming to meet the evolving needs of patients and healthcare professionals.
Harrow Health Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 32.13%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Harrow demonstrated strong revenue growth and cash flow, along with successful strategic initiatives in product launches and market access. However, the quarter was marred by seasonal revenue weakness and significant one-time expenses. The company's outlook remains positive with expectations for growth in the remainder of the year.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Harrow reported a 38% year-over-year revenue growth in the first quarter of 2025.
Record Cash Flow
The company delivered a record $19.7 million in cash flow from operations.
VEVYE Revenue Increase
VEVYE revenue rose 35% sequentially, from $16 million in Q4 2024 to $21.5 million in Q1 2025.
Successful Launch of VEVYE Access for All Program
Post-launch, both new prescriptions and weekly VEVYE prescribers at PhilRx quadrupled.
Infrastructure Expansion
The VEVYE team has grown to over 80 sales and marketing professionals, with additional expansion in other teams.
Positive Market Response for TRIESENCE
Market access initiatives for TRIESENCE are expected to unlock about 40% of the overall market, showing significant sales momentum.
Strong ImprimisRx Performance
April appears to be a record month for ImprimisRx, indicating consistent performance.
Negative Updates
Seasonal Revenue Weakness
First quarter revenues for some segments were softer than expected due to seasonality.
One-time Expenses Impact
The first quarter faced challenges from one-time expenses totaling $3.7 million.
IHEEZO Sales Impact
IHEEZO's first quarter sales were impacted by elevated stocking activity at the end of 2024.
Specialty Branded Products Volatility
Volatility in gross to net estimates for specialty branded products caused a reduction in recognizable revenue for the period.
Company Guidance
During Harrow's First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a strong outlook for the remainder of the year. They aim to achieve their 2025 revenue target of over $280 million, requiring approximately $232 million in revenue across the next three quarters. In Q1 2025, Harrow's revenue grew by 38% year-over-year, with standout performance from VEVYE, which saw a 35% sequential revenue increase to $21.5 million. Harrow anticipates VEVYE will generate at least $100 million in revenue by year-end. IHEEZO is expected to deliver over $50 million, and the specialty branded products, including TRIESENCE, are projected to contribute at least $50 million. The ImprimisRx compounding business is on track to deliver more than $80 million. Harrow also reported a record $19.7 million in cash flow from operations in Q1 and discussed strategic initiatives such as the VEVYE Access for All program, which has quadrupled new prescriptions and prescribers within seven weeks of launch.Harrow Health Financial Statement Overview
Summary
Harrow Health shows robust revenue growth, indicating strong market demand. However, the company faces profitability challenges with a negative net profit margin and high leverage, posing financial risks. Operational efficiency is improving, but cash flow remains under pressure.Income Statement
Harrow Health has shown strong revenue growth, increasing from $48.87M in 2020 to $212.86M in TTM (Trailing-Twelve-Months) 2025, indicating a solid growth trajectory. The gross profit margin remains healthy at 74.5% TTM, despite a negative net profit margin of -10.2% TTM, reflecting ongoing profitability challenges. EBIT margin stands at 2.1% TTM, with EBITDA margin at 8.8% TTM, suggesting some improvement in operational efficiency but still below industry norms.65
Positive
Balance Sheet
The company's balance sheet shows a concerning debt-to-equity ratio of 4.07 TTM, indicating high leverage, which presents financial risk. Return on equity is negative at -38.4% TTM, due to persistent net losses. The equity ratio is low at 15.5% TTM, signaling a reliance on debt financing, which could be risky if earnings do not improve.55
Neutral
Cash Flow
Harrow Health's cash flow performance is mixed, with free cash flow remaining negative at -$36.61M TTM, indicating cash generation challenges. The operating cash flow to net income ratio is positive at 0.10 TTM, reflecting some cash generation from operations, but the free cash flow to net income ratio is negative, highlighting ongoing cash burn issues.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 212.86M | 199.61M | 130.19M | 88.59M | 72.48M | 48.87M | Gross Profit |
| 158.64M | 150.37M | 90.55M | 63.21M | 54.26M | 34.41M | EBIT |
| 4.52M | 8.82M | 431.00K | -1.75M | -284.00K | -1.63M | EBITDA |
| 18.65M | 19.28M | 9.72M | -3.20M | -10.14M | 3.49M | Net Income Common Stockholders |
| -21.70M | -17.48M | -24.41M | -14.09M | -18.01M | -3.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.92M | 47.25M | 82.77M | 96.27M | 50.67M | 32.56M | Total Assets |
| 56.25M | 388.97M | 312.16M | 157.02M | 98.33M | 57.47M | Total Debt |
| 20.77M | 228.83M | 190.50M | 104.17M | 77.96M | 23.53M | Net Debt |
| 14.47M | 181.58M | 116.42M | 7.90M | 35.79M | 19.43M | Total Liabilities |
| 28.38M | 319.67M | 241.75M | 130.14M | 87.40M | 30.65M | Stockholders Equity |
| 28.23M | 69.65T | 70.77M | 27.24M | 11.29M | 27.18M |
| Cash Flow | Free Cash Flow | ||||
| -36.61M | -60.88M | -148.71M | -6.07M | -23.43M | -2.09M | Operating Cash Flow |
| 2.09M | -22.20M | 3.84M | 1.71M | 5.08M | -1.10M | Investing Cash Flow |
| -33.27M | -33.16T | -152.55M | -1.74M | -18.69M | -981.00K | Financing Cash Flow |
| 29.36M | 28.53M | 126.53M | 54.14M | 51.47M | 1.43M |
Harrow Health Technical Analysis
Positive
31.17
Price Trends
25.77
Positive
27.36
Positive
35.20
Negative
Market Momentum
1.26
Negative
66.61
Neutral
81.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HROW, the sentiment is Positive. The current price of 31.17 is above the 20-day moving average (MA) of 27.81, above the 50-day MA of 25.77, and below the 200-day MA of 35.20, indicating a neutral trend. The MACD of 1.26 indicates Negative momentum. The RSI at 66.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HROW.
Harrow Health Risk Analysis
Harrow Health disclosed 58 risk factors in its most recent earnings report. Harrow Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harrow Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $444.36M | 9.16 | 25.47% | 10.13% | -23.37% | -39.03% | |
79 Outperform | $1.27B | 9.77 | 19.90% | ― | 8.05% | -8.46% | |
76 Outperform | $976.16M | 25.03 | 19.23% | ― | 17.17% | -51.97% | |
64 Neutral | $1.36B | ― | -5.19% | ― | 30.26% | -173.36% | |
60 Neutral | $1.09B | ― | -37.23% | ― | 53.49% | 33.18% | |
59 Neutral | $1.15B | ― | -12.27% | ― | 3.08% | -247.82% | |
54 Neutral | $5.37B | 3.35 | -45.10% | 2.79% | 16.77% | -0.01% |
* Healthcare Sector Average
Performance Comparison
HROW
Harrow Health
31.17
12.92
70.79%
PCRX
Pacira Pharmaceuticals
24.87
-3.81
-13.28%
SIGA
SIGA Technologies
6.22
-0.92
-12.89%
ANIP
ANI Pharmaceuticals
62.87
-1.34
-2.09%
AMPH
Amphastar Pharmaceuticals
26.05
-14.40
-35.60%
COLL
Collegium Pharmaceutical
30.37
-1.51
-4.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.