HARROW, INC. Q3 FY2024 earnings call

• VEVYE, launched in January, has surpassed expectations with 55% QoQ prescription volume increase, over 90% refill rates, and improved insurance access; coverage territories increased from 51 to 61.
• IHEEZO saw 15% QoQ unit demand increase and 82% reorder rate, but shifted commercial focus to the retina specialist community for better market impact.
• TRIESENCE relaunched in October 2024, with Medicare reimbursement clarified, and efforts to manage inventory and supply chain for long-term sustainability.
• ImprimisRx is doing well, producing cash, launched new product Povacaine AEL, and expects double-digit revenue growth in 2025.
• MELT-300 Phase 3 data expected early next week; if successful, could lead to significant revenue as it's a patented formulation with potential in multiple markets.

In the third quarter, Harrow reported record revenue of $49.3 million, a 44% increase year-over-year. VEVYE, launched in January, saw total prescription volume increase 55% QoQ, with over 90% refill rates and improved insurance formulary access; revenue contribution from VEVYE is significant. IHEEZO had a 15% sequential unit demand increase in Q3 with an 82% reorder rate, but shifted focus to the retina specialist community. TRIESENCE relaunched in October, with Medicare reimbursement clarified and efforts to push inventory through the system. ImprimisRx is performing well, producing cash, and launched a new product, Povacaine AEL, with positive customer reception.

• Harrow expects record performance in October and Q4 2024, aiming to exceed 2024 financial guidance.
• VEVYE is conservatively set to more than double in revenue next year.
• IHEEZO aims for $75M quarterly revenue run rate by 2027, targeting ~6-7% of the intravitreal injection market.
• TRIESENCE relaunch is expected to drive revenue, with long-term supply chain plans in place.
• ImprimisRx expects double-digit revenue growth in 2025.

• Risks related to FDA approval timelines for drug candidates and ability to make products commercially available.
• Uncertainties in forecasting leading to inventory shortages, as seen with VEVYE.
• Market competition and challenges in maintaining market share for products.

Q: Quantify the VEVYE disruption in Q3 and details on Part D coverage.

A: Mark stated the VEVYE disruption was several million dollars, and Harrow is recapturing that revenue in Q4. On Part D, Harrow has a preferred brand position with a large Med D provider, working on additional agreements for formulary coverage.

Q: Impact of summer seasonality on results.

A: Mark explained summer is typically the weakest month as patients, doctors, and staff go on vacation, reducing surgical openings.

Q: IHEEZO's pivot to retina market and plans for cataract surgery.

A: Harrow is focusing IHEEZO on the intravitreal injection market for revenue growth by 2027, but will continue serving cataract surgery market though not prioritized.

Q: Size of commercial team for IHEEZO and TRIESENCE, and OpEx ramp.

A: The same team sells both IHEEZO and TRIESENCE, working on GPO relationships; OpEx will expand with revenue growth to drive further expansion.

Q: VEVYE gross to net, DTC activity, TRIESENCE overlap, and MELT-300.

A: Harrow is working on improving gross to net for VEVYE, has no DTC activity; TRIESENCE and IHEEZO are moved together on GPOs; MELT-300 Phase 3 data expected next week, with potential significant revenue if successful