Harrow Inc. reports robust revenue growth in Q1 2024 By Investing.com

Harrow, Inc. (ticker not provided), a prominent player in the ophthalmic pharmaceuticals industry, has reported a significant 33% revenue increase in the first quarter of 2024 compared to the previous year. The company’s recent product launches and strategic agreements have contributed to this growth, despite challenges such as a cyber-attack impacting sales. Harrow remains optimistic about achieving its annual revenue guidance of over $180 million.

Key Takeaways

• Harrow Inc. saw a 33% increase in Q1 revenues year-over-year.
• The company’s management team was strengthened by the addition of Greg DiPasquale as Senior Vice President and Head of Commercial.
• New product VEVYE is gaining traction with positive market feedback and growing prescriptions.
• Harrow secured coverage for VEVYE for over 150 million lives and expects Medicare Part D coverage improvements.
• IHEEZO’s market adoption is increasing, especially among retina specialists.
• Gross margins are projected to rise from the mid-70s to the low 80s by year-end.
• The Change Healthcare (NASDAQ:) cyber-attack had a significant impact on Q1 sales, but the situation is improving.
• Harrow reaffirmed its 2024 revenue guidance of over $180 million, not including TRIESENCE contributions.

Company Outlook

• Harrow is confident in its five-year strategic plan to become a leader in the North American ophthalmic pharmaceuticals industry.
• The company aims for sequential quarterly revenue growth throughout 2024.
• Harrow is managing to a leverage ratio of under five times, despite slightly higher G&A spending.

Bearish Highlights

• Harrow experienced a material impact on Q1 sales due to the Change Healthcare cyber-attack.
• The company’s G&A spending was higher than anticipated.

Bullish Highlights

• Harrow’s product VEVYE is expected to see improved coverage, particularly in Q2 and Q3.
• The company has signed supply agreements with seven large multi-practice organizations.
• Harrow is pleased with the pricing realization for its branded drugs IHEEZO and VEVYE.

Misses

• No quarterly guidance was provided during the earnings call.

Q&A Highlights

• CEO Mark L. Baum emphasized the importance of converting agreements with multi-practice organizations into actual orders.
• Baum is satisfied with the average selling price (ASP) of IHEEZO and VEVYE.
• Andrew Boll discussed incremental investments in sales and marketing to support revenue growth while managing the EBITDA…