HARROW, INC. Q2 FY2024 earnings call

• Revenue: Harrow achieved record quarterly revenue of $48.9 million, a 46% y-o-y and 42% q-o-q increase. Every part of the business contributed to this, with Anterior Segment up over 40% q-o-q and ImprimisRx compounding at its highest quarterly revenue.
• IHEEZO: Quarterly unit volumes nearly doubled, 24 supply agreements signed in 2024 including 10 in Q2 and 7 since June 30, and a major agreement with the largest retina practice group in the US.
• VEVYE: Total prescriptions in PhilRx Q2 2024 increased 212% q-o-q, prescribers over 3,000, covered lives over 166M, commercial coverage ~58%, Medicaid coverage 80% and expected 100% by Q3, with sales force expansion planned.
• TRIESENCE: Making progress towards relaunch, third PPQ batch scheduled for next week, initial analytical testing of second batch in spec.

Harrow achieved record quarterly revenue of $48.9 million, a 46% increase over the prior year quarter and a 42% increase over the previous quarter. The Anterior Segment business saw revenue increase by over 40% versus the first quarter of 2024. The ImprimisRx compounding subsidiary achieved its highest quarterly revenue in its history, with branded revenue now ahead of compounded revenue. IHEEZO quarterly unit volumes nearly doubled, up about 98% from last quarter. VEVYE total prescriptions in the second quarter of 2024, from PhilRx, increased 212% from the first quarter, with prescribers now about 3,000 strong, covered lives beyond 166 million, commercial coverage at approximately 58%, and Medicaid coverage currently at 80% and expected to reach 100% by the time of the third quarter results.

• Expect revenue in the back half of 2024 to outpace the first half, with 2024 revenue expected to be greater than $180 million excluding TRIESENCE’s contribution.
• TRIESENCE relaunch anticipated in the fourth quarter if the third batch is successful.
• VEVYE sales force expansion planned to cover all markets with feet on the street.

Forward-looking statements are subject to numerous risks and uncertainties, including risks related to the company's ability to make commercially available its FDA-approved products and compounded formulations and technologies, and FDA approval of certain drug candidates in a timely manner or at all, as described in SEC filings.

Q: Jeffrey Cohen asks about Medicare coverage for VEVYE.

A: Mark Baum responds that they are in the process of attaining Medicare coverage, an 18-24 month process, and are actively negotiating.

Q: Chase Knickerbocker asks about Medicaid co-pay, commercial co-pay, and IHEEZO supply agreements.

A: Mark and Andrew respond on Medicaid co-pay being zero for many, step-edit in commercial plans, and that IHEEZO supply agreements are licenses to hunt with large practice groups like the largest retina practice group in the US having 2.1 million patient visits per year.

Q: Mayank Mamtani asks about IHEEZO unilateral vs bilateral, VEVYE net price, and ASRS meeting opportunities.

A: Mark responds on unilateral vs bilateral being simple math for unit volume, VEVYE refill rates and market access driving ASP, and actively looking for strategic products while being disciplined and profitable.

Q: Brooks O'Neil asks about IHEEZO reorder activity and VEVYE success in Medicaid.

A: Mark responds that IHEEZO reorder rate is 87% at this stage, and VEVYE's success in Medicaid is due to a dedicated market access team being patient, deliberate, and disciplined in securing wins.