Harrow (HROW) 2024 Cantor Fitzgerald Global Healthcare Conference summary

Business overview and performance

• Focuses exclusively on ophthalmic pharmaceuticals in North America, with 17 branded products and a leading compounding franchise.

• Stock performance has surged, attributed to credibility in delivering on stated goals and successful drug launches.

• Revenue guidance for the year is north of $180 million, with consensus estimates around $198 million; back half growth expected to outpace the first half.

• Long-term target is a $1 billion annual revenue run rate by 2027, with recent five-year goals achieved in under two years.

Key product updates and growth drivers

• VEVYE is positioned to become a leading chronic dry eye disease product, with strong refill rates and rapid, durable efficacy.

• IHEEZO, the only reimbursable topical anesthetic in the U.S., is seeing rapid adoption, high reorder rates (87%), and strong supply agreements.

• Triessence is expected to relaunch pending analytical results, with significant demand from retina specialists.

• Melt Pharmaceuticals' phase III data is expected soon, targeting sedation in cataract surgery with potential for broader applications.

Financial outlook and operational strategy

• Gross margins have reached the low 80% range, with further improvement expected as branded products grow.

• Operating leverage is increasing, with most infrastructure in place and incremental expenses focused on revenue-generating activities.

• Growth is primarily driven by VEVYE, IHEEZO, and Triessence, with compounding and anterior segment products providing high-margin support.