Harrow (HROW) investor relations material

Strategic Vision and Business Model

• Aims to become the leading U.S. ophthalmic company, leveraging a founder-led, entrepreneurial approach and disciplined M&A to build the largest, most diversified ophthalmic portfolio in North America.

• Focuses on acquiring and integrating assets that fit strategic, financial, and operational criteria, with a preference for late-stage or commercial products that scale efficiently.

• Maintains a disciplined capital structure, recently refinancing $250M in unsecured notes, reducing annual interest expense by $3M, and securing additional liquidity through revolving credit facilities.

• Operates with a target of under 3x gross leverage and under 2x net leverage, with annual revenue growth exceeding 40% (except 2021) over the past five years.

• Commercial teams are organized by therapeutic area, with programs ensuring patient access for as low as $0 or a maximum of $59, and a scalable platform supporting branded, generic, and compounded products.

Product Portfolio and Pipeline

• Portfolio spans dry eye, retina, surgical, rare, and specialty ophthalmic products, with leading brands like VEVYE, IHEEZO, TRIESENCE, and upcoming launches including BYQLOVI, BioViz/BYOOVIZ, Opuviz, and Melt 300.

• VEVYE is the first and only water-free cyclosporine for dry eye, achieving 7.8% US market share in Q2 2025 and strong market share gains, supported by the VAFA access program.

• Retina franchise is expanding with biosimilars BioViz/BYOOVIZ (Lucentis) and Opuviz (Eylea), both with interchangeability status and expected US launches in 2026 and 2027.

• Surgical portfolio focuses on perioperative solutions, with TRIESENCE as the only FDA-approved preservative-free injectable steroid, BICLOVI launching in 2026, and Melt 300 (non-IV, non-opioid sedation) expected to file NDA in 2027 and launch in 2028.

• Pipeline includes a prefilled syringe version of TRIESENCE (targeting 2028), a novel conjunctival delivery device for ocular cancer (potential launch 2029), and ongoing label expansion for Melt 300.

Financial Guidance and Growth Outlook

• 2025 revenue guidance is over $280M, with a medium-term goal of $250M+ in quarterly revenue by Q4 2027, driven by VEVYE, retina biosimilars, and surgical launches.

• Gross margins expected in the low to mid-80% range, with operating margins of 30–40% at target revenue levels.

• Access for All programs (VAFA, HAFA) are designed to maximize patient access, drive prescription volume, and ensure nearly every script is profitable, supporting sustainable revenue growth.

• Commercial execution is supported by a best-in-class sales team, strategic account initiatives, and a focus on expanding depth and breadth in key segments.

• M&A remains opportunistic, with a focus on structured deals that fit existing commercial infrastructure and deliver long-term value.