Harrow (HROW) Piper Sandler 36th Annual Healthcare Conference summary

Strategic business focus

• Prescription business is the primary focus for future investment and growth, with compounding now a stable but less critical segment.

• Most capital and resources are allocated to prescription products, while compounding continues to support innovation and relationships.

• Lifecycle management and stable supply are key priorities for relaunching and sustaining products like TRIESENCE.

• Commercial expansion is data-driven, with headcount increases tied to coverage and profitability.

• Acquisition strategy targets high-value, discounted assets that complement the current portfolio.

Product portfolio and market opportunities

• TRIESENCE relaunch is expected to drive significant revenue growth in 2024 and beyond, with robust reimbursement and a large addressable market.

• IHEEZO, a novel ocular anesthetic, is positioned for strong growth in the retina and in-office markets, targeting a $75 million annual run rate by 2027.

• VEVYE is gaining traction in the competitive dry eye market, with a focus on patient retention and improved Medicare Part D access.

• Anterior segment and legacy products provide stable revenue and community visibility, but are not primary growth drivers.

• MELT-300, with positive phase III data, represents a major future opportunity, especially beyond ophthalmology.

Commercial and operational execution

• Sales organizations are structured by product, with VEVYE prioritized for expansion as coverage improves.

• No direct-to-consumer advertising is planned for VEVYE; market awareness is leveraged from competitors' DTC efforts.

• Business rule changes and improved access are expected to significantly increase VEVYE's average selling price in 2024.

• Manufacturing challenges for TRIESENCE are being addressed to ensure stable supply and avoid future shortages.

• Commercial investments are closely linked to coverage and expected profitable revenue, avoiding large-scale, speculative launches.