Harrow Q2 2025 Earnings Report

Harrow EPS Results

• Actual EPS: $0.24
• Consensus EPS: $0.01
• Beat/Miss: Beat by +$0.23
• One Year Ago EPS: N/A

Harrow Revenue Results

• Actual Revenue: $63.74 million
• Expected Revenue: $64.23 million
• Beat/Miss: Missed by -$484.00 thousand
• YoY Revenue Growth: N/A

Harrow Announcement Details

• Quarter: Q2 2025
• Date: 8/11/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, August 12, 2025
• Conference Call Time: 8:00AM ET

Harrow (NASDAQ:HROW) operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in Nashville, Tennessee.

Harrow Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong second quarter results with $63.7 million in revenue (up 30% YoY and 33% sequentially) and $17 million in adjusted EBITDA, highlighting Harrow’s operating leverage.
• Positive Sentiment: VeeVai prescription volumes grew 66% quarter-over-quarter under the VeeVai Access for All program and a new alliance with Apollo Care, with stabilized ASPs and upside potential.
• Positive Sentiment: iHizo’s retina pivot drove 25% unit volume growth quarter-over-quarter, added 19 new retina accounts, and now enjoys over 81% payer coverage under its “iHizo for All” initiative.
• Positive Sentiment: Triassence accelerated with 32% quarter-over-quarter growth and 84% reimbursement coverage, and Harrow is preparing a Q4 entry into the large ocular inflammation (post-surgical) market.
• Positive Sentiment: Harrow augmented its pipeline by securing U.S. rights to Biclovy (first novel ocular steroid in 15+ years) and Samsung’s interchangeable biosimilars (BioViz, OPUViz), targeting 2026 commercial launches.

Presentation

[Operator]

Good morning, and welcome to Harrow's Second Quarter twenty twenty five Earnings Conference Call. My name is Shannon, and I will be your operator for today's call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. As a reminder, this conference is being recorded.

[Operator]

I would now like to turn the conference over to Mike Vice President of Investor Relations and Communications for Harrow.

[Mike Biega, VP - IR & Communications at Harrow]

Thank you, operator. Good morning, and welcome to Harrow's Second Quarter twenty twenty five Earnings Conference Call. My name is Mike Biega, and I'm excited to be introducing today's call, having joined Harrow as Vice President of Investor Relations and Communications in June. It's a pleasure to be part of the Harrow family and to speak with all of you this morning. Before we begin today, I would like to highlight a few new items for our quarterly report.

[Mike Biega, VP - IR & Communications at Harrow]

We will be presenting slides during the webcast today. If you have registered and joined through the live conference call link, I would highly recommend that you also join through the webcast. You can find the link in the Investors Events section of our website at www.harrow.com or in our earnings press release that was issued yesterday. We also have a new corporate deck that was posted on our website yesterday. All the slides we will be presenting today can be found in that deck.

[Mike Biega, VP - IR & Communications at Harrow]

Moving forward, you should expect that our earnings process will mirror this format with potentially a few additional changes, and we will certainly update you on any future changes to this format. In addition, we recently launched a new corporate website, which I encourage all of you to explore. The company's remarks may include forward looking statements within the meaning of federal securities laws. Forward looking statements are subject to numerous risks and uncertainties, many of which are beyond HARO's control, including risks and uncertainties described from time to time in its SEC filings, such as the risks and uncertainties 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. For a list and description of those risks and uncertainties, please see the Risk Factors section of the company's most recent annual report on Form 10 ks and subsequent quarterly reports on Form 10 Q filed with the Securities and Exchange Commission.

[Mike Biega, VP - IR & Communications at Harrow]

Results may differ materially from those projected. HARO disclaims any intention or obligation to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise. This conference call contains time sensitive information and is accurate only as of today. Additionally, Harrow will refer to non GAAP financial metrics, specifically adjusted EBITDA and or adjusted earnings, as well as core results such as core gross margin, core net income and core diluted net income per share. A reconciliation of any non GAAP measures with the most directly comparable GAAP measures is included in the company's earnings release and letter to stockholders, both of which are available on the website.

[Mike Biega, VP - IR & Communications at Harrow]

By now, you should have received a copy of the earnings press release. If you have not received a copy, please go to the Investors Relations page of the company's website, www.harrow.com. Joining me on today's call are Harrow's Chief Executive Officer, Mark Albaum and Harrow's Chief Financial Officer, Andrew Boll. With that, I would like to turn the call over to Mark to go over some prepared remarks prior to the question and answer session. Mark?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Thanks, Mike, and good morning, everyone. Thank you for joining us today. I hope you've had the opportunity to review our supplemental documents for the second quarter, including our earnings release, corporate presentation and letter to stockholders, all of which are now available on the Investor Relations section of our newly designed harrow.com website. Harrow is a leading provider of ophthalmic disease management solutions in North America, enhancing the ability of eye care professionals to manage sight threatening ophthalmic diseases. To achieve this, we ensure that our products are safe and efficacious, accessible and affordable, and that they increase patient compliance, which in turn facilitates improved ophthalmic disease management.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Today, our ophthalmic disease management solutions are all pharmaceuticals, but in the future, this may evolve. In any case, our focus will always be to provide leading edge products and outstanding service to help eye care professionals best care for their patients. Our primary financial goal is to deliver a $250,000,000 revenue quarter by the 2027. I believe this is achievable because of what we own, how we're performing and where I see the business heading, and our demonstrated history of growth from literally no customers, no products and no revenue about a dozen years ago. I intend to provide more color on how we intend to achieve this $250,000,000 quarterly revenue goal on September 26 during our inaugural Investor and Analyst Day, an event that Mike Biega is working to put together.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

This event, which we intend to make an annual event, will be hosted by HAROL leadership after Labor Day each year. I'm looking forward to our stockholders and analysts meeting members of the HAROL leadership team, seeing our products live and learning more about how we partner with US eye care professionals to manage ophthalmic diseases. For more information, please reach out to Mike at M Biega, B I E G A, at harrowinc dot com, if you're interested in attending. Now, over the past five years, we have built a sophisticated and hard to replicate infrastructure. Today, we own one of the most extensive portfolios of ophthalmic products in The United States, now totaling more than 59 prescription products.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We address both front and back of the eye diseases. We sell into both the insurance reimbursed market and the cash pay market. We sell to the eye care professional office, the ASC and hospital, and we ship directly to patients. I think one of the things I'm most excited about is Andrew and I look over the one or two year horizon is the incredible leverage we have in our model. Essentially, our commercial infrastructure is paid for in delivering profits as demand increases for key products like Veeva and iHizo, and we add revenue generating assets like the Samsung ophthalmic biosimilars portfolio, or we begin to sell Triassence into a key large market, which I'll talk more about, we really aren't incurring meaningful additional costs, which means much of what we sow, we should reap.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

The second quarter was a great setup for the back half of the year, as we saw deeper market penetration across our core growth drivers, largely due to the recently implemented VIVI Access for All initiative, VIVI saw a 66% growth in prescription volumes this quarter over the prior quarter. And we don't see any signs of that momentum slowing. Capitalizing on the growing demand for VVAI, today we announced a strategic alliance with Apollo Care, an innovative provider of patient access and commercial solutions that provides full nationwide coverage across The United States as Harrow's second specialty pharmacy partner for the BAFA program. Ihizo's retina pivot is taking hold with a 25% growth in unit volume quarter over quarter. Tri continued to gain momentum with volumes accelerating and market share expanding, achieving 32% quarter over quarter growth.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And by the way, the numbers for the third quarter for Tri Essence are also doing well. Our specialty branded product portfolio, well known essential everyday therapies relied on by thousands of eye care professionals delivered a strong quarter and a nice rebound from the first quarter. Finally, we recently announced two strategic acquisitions that fit in seamlessly with our commercial infrastructure. One, at the end of the second quarter, we secured The U. S. Rights to buy Clovi, which was a recently approved treatment for postoperative inflammation and pain following ocular surgery. This is the first new ophthalmic steroid in its class in over fifteen years. And then second, we also recently acquired The US rights to Samsung's ophthalmic biosimilars pipeline, including BioViz, an FDA approved biosimilar referencing Lucentis and OPUViz, an FDA approved biosimilar referencing EYLEA.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Our total revenue for the second quarter was $63,700,000 a 30% increase over the 2024 and a sequential increase of 33% from the 2025. The 2025 generated $111,600,000 in revenue. To reach our guidance of more than $280,000,000 for 2025, we need to generate approximately $169,000,000 in revenue in the second half of the year. Given the math that I'm seeing today, I believe we are on track to meet our guidance goals. Now I've repeatedly stated on prior calls that the second half of the year is always stronger than the first half of the year.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And as you read from our letter to stockholders, and you will hear from my prepared remarks this morning, we are seeing momentum with our key growth drivers that should start to show meaningful revenue growth as early as the third quarter. I think next year, though, we will try to provide annual revenue guidance and split it into two halves, the first half of the year and then the second half of the year. I think that might work better for us. In any case, adjusted EBITDA was a great story as second quarter adjusted EBITDA came in at $17,000,000 with $5,000,000 of net income. This once again highlights the operating leverage we've built into the business.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

HARO is at an inflection point. Our revenue should reach new heights in the back half of this year. And as you saw from this quarter, our cost basis really remains fairly stable. This is a result of years of investment in building a strong scalable commercial infrastructure that's designed to support this phase and level of growth. VeeVai generated 18,600,000.0 in revenue, a 13% decrease from the 2025.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

As outlined in our letter to stockholders, the revenue reduction seen in the second quarter versus the 2025 was driven by a normalization in average selling price or ASP, which I called out during our first quarter conference call and in our Q1 letter to stockholders. We typically don't comment on changes in ASP quarter over quarter, but I think it's important to highlight that the ASP seen in the first quarter was an anomaly due to the changes in the business rules we implemented at the beginning of the year, With our present VVAI ASP reflective of those VAVA business rules, we expect to see and are seeing both VVAI volumes and revenues increase once again as we forecasted. Based on the ratios or the types of VYI prescriptions we're seeing, we're confident that VYI's ASP has stabilized, and we even see a path to modest improvement over the rest of the year. In addition to continuing to improve our business rules algorithm, as I shared in our earnings release, we've entered into a strategic alliance with Apollo Care, an innovative service provider with full national coverage. Now this alliance significantly expands Veevais distribution network, improving both pharmacy access and insurance coverage for patients nationwide, and it should buttress our ASP at current levels.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And as I said, provide an upward bias towards ASP improving over the coming quarters. Apollo Cares pharmacy network spans more than 500 pharmacies and is broadly contracted with major and smaller commercial plans, as well as TRICARE and Medicare. With coverage reaching every US geography and payer type, this collaboration positions us to reach more patients than ever before. Importantly, for our stockholders, nearly every prescription of Veeva that is dispensed is now profitable for Harrow under the VAPA initiative, a notable shift from pre VAVA times. These adjustments caused structural improvements that enhance the quality of our revenue and our ability to invest and further scale VVAI's long term profitability.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

When we provided VIVI revenue guidance of more than $100,000,000 for 2025, we accounted for the anticipated decline in subsequent stabilization of ASP from Q1 to Q2. Once again, we expect VVAI to generate over $60,000,000 in revenue for the 2025. If you straight line Q2 growth for the balance of the year with a stable ASP, this puts us ahead of where we need to be by the end of this year for the VIVI franchise. IHizo generated $18,300,000 in revenue, a 251% increase from the 2025. IHizo is gaining momentum and growing market share.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

The growth this quarter is driven by the momentum from our retina pivot and expanded distribution through the group purchasing organization agreements we've signed. AHIZO is on the path to have a record year this year, and I'm confident it will surpass our guidance of 50,000,000 or more in revenue. Triassins in our specialty branded portfolio generated $5,200,000 in revenue. That's a 447% increase from the 2025. With Triassence capturing more market share and a large market on the horizon, I'm confident the second half will outperform the first half by a wide margin.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

ImprimisRx generated $21,500,000 in revenue, that's a 7% increase from the 2025. This is a stable cash generating business and it is performing as expected and is on track to reach our guidance of $80,000,000 or more this year. In sum, our 2025 guidance remains intact and I remain very confident in our team's ability to hit that number. Since launching VBAI Access for All in late March of this year, the demand for VBAI has surged. The promise of the VAPA market access program for VBAI is one, increased access for patients two, lower out of pocket costs for patients, and three, a reasonable and sustainable profit for Harrow.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

As I detail more in the letter to stockholders, the VAPA program is meeting all of our commercial objectives. VEVY continues to exceed our prelaunch expectations in every category, new prescriptions, refill rates, patient satisfaction and prescriber engagement. The impact of VAPA can be seen on this slide. Prescription volumes were up 66% sequentially for a total of 119,526 units. Of those, nearly 50,000 were new prescriptions, resulting in a 62% increase in new prescriptions over the 2025.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

As prescription volumes grow, we're maintaining industry leading refill rates, an important indicator of product adoption and satisfaction. In 2024, covered patients receiving V VYE through FillRx received an average of nine refills, a figure that significantly outpaces the typical refill rates seen with other therapies in the dry eye disease market. This sustained refill behavior highlights not only Veevais clinical value, but also its ability to foster ongoing patient engagement well beyond the initial prescription. The compounding effect of rising numbers of new prescriptions and consistently high refill rates positions us for sustained revenue growth. We anticipate the first meaningful financial impact as early as the third quarter of this year, driven by the continued momentum in new prescription volume, a more stable ASP and a growing wave of refill activity.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

This surge is largely attributable to the strong demand generated since the launch of the VAFA program. To reiterate what I said earlier, under the VAFA initiative, nearly every prescription written for Veevae is now profitable. And this is a notable shift from before we had this program going, when that wasn't always the case. We've also secured additional manufacturing capacity for 2025, enabling us to further scale our commercial reach. In parallel, are revisiting next year's forecasts, increasing our supply chain flexibility and ensuring that we are well positioned to meet the sustained and growing demand we anticipate for both new and refill prescriptions of Veevae.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Importantly, as noted earlier, we're also preparing to bring a second Veevae manufacturing site online next year, and this will further strengthen our supply chain and facilitate our growth strategy. Levi's market penetration continues to accelerate. By the end of Q2, we have captured a 7.8% share of the national dry eye disease market. That's a 2.6 plus percent increase quarter over quarter. Notably, according to IQVIA and Fillarex data, VIVI has now surpassed national market share.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

This is an important milestone that reinforces the effectiveness of our commercial strategy and execution. According to IQVIA, Veevae is now the second largest cyclosporine based dry eye brand being prescribed. Once again, a significant milestone that validates the strength of our primary strategy, which is to win the cyclosporin category in dry eye. Veevae is beginning to also gain ground on MIBO, having surpassed Mybo and new prescriptions in four US markets that are quite sizable. In summary, we're still in the early stages of the Vevi launch and the growth trajectory is compelling.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Demand continues to rise sharply, refill rates remain industry leading and with only 7.8% market share captured so far, the runway ahead is significant. With a best in class clinical profile, strong access infrastructure in place and a robust commercial team, we believe VIVA is well positioned to exceed $100,000,000 in annual revenue this year, marking just the beginning of a multi year growth opportunity. In June 2025, we announced the acquisition of from Formosa Pharmaceuticals. I'm particularly excited about Biclovy, an FDA approved steroid indicated for the treatment of inflammation and pain after ocular surgery. And it's the first novel steroid introduced to The US market in over a decade.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Biclovy is a highly potent next generation therapy. And it's the only FDA approved ocular steroid formulated with Clovidazole, delivering robust clinical efficacy supported by a well established safety profile. From a clinician's perspective, the typical risks associated with ophthalmic corticosteroids includes increased intraocular pressure or IOP. And in this case, the resultant IOP increase was only one point four percent of the population exposed to the product during pivotal clinical studies. The incidence of increased IOP was substantially higher with products such as DEXTENZA and others, all comprised of less potent corticosteroids than Biclovy, but with a higher risk profile.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Biclovy also has longer duration of action, allowing for reduced frequency of administration. In this case, twice daily versus four times daily. And in the ophthalmic market, when a product is to be administered four times daily, it's typically every four hours while awake, which could pose significant compliance issues. Therefore, we believe VICLOVI may offer important patient compliance features. Finally, in terms of efficacy, both in terms of the percent of responders to full pain relief at the earliest regulatory time point of four days post op.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And in terms of complete clearance of inflammation, post op four days, Biclovy performed better than all other approved products for the same indication in The US. While this assessment is not based on head to head studies, it's based on a cross comparison between approved product labels. With over seven million ophthalmic surgeries performed annually in The US, and a wide range of additional clinical applications for topical steroids, we see a substantial market opportunity ahead. And I'm confident our commercial team is well equipped to drive strong adoption of this differentiated product. We expect to launch Biclovy in the 2026.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

I'm encouraged to see both iHiso's revenue and unit volumes returned to near fourth quarter twenty twenty four levels, a period that benefited from increased stocking. Showing clear signs of momentum and growing market share. The second quarter showed new account growth and deeper utilization within existing practices with 25% growth in unit volume over the 2025. This surge in demand is being fueled by strong momentum from our retina pivot strategy and expanded distribution through new GPO relationships. This expansion led to the addition of 19 new accounts during the period, all of which were retina practices, underscoring the targeted success of our strategic focus and iHiso's growing adoption in this critical specialty.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Notably, iHiso volume grew 33% quarter over quarter within the largest retina GPO, which represents approximately 70% of the retina market. Overall, distributor shipment volume for iHiso increased by an impressive 170% in Q2 compared to 2025, underscoring the strong and accelerating demand we're seeing. IHizo currently enjoys broad coverage with better than 81% of commercial and government payers providing reimbursement. Our data indicates that only 3% of IHEZO claims are categorized as not covered and only 4% require prior authorization. Amazing coverage data.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

In response to the strong access position, I recently developed the iHESO for all strategy, an initiative focused on expanding iHizo utilization and retina procedures across both existing and new accounts with the goal of driving near term sales growth. Now with all four major GPOs on board, and strong clinical synergy between iHizo, Tri Essence and eventually our new anti VEGF products, BioViz and OpuViz, I believe iHizo's growth is just beginning. These are still early days in its launch, but with four differentiated and highly complementary therapies in Harrow's portfolio, and a proven commercial team to execute our strategy, I expect IHIZO is entering a new phase of accelerated growth. By the way, so far in the early days of the third quarter, we've already eclipsed the number of new iHizo account starts achieved in the entirety of the second quarter, with all of our new accounts being retina practices. TriEssence is gaining strong traction within the retina community with accelerating volumes and growing market share.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Year to date, TriEssence added eight seventy new accounts and achieved 32% quarter over quarter growth. Triassence has also achieved 84% coverage with only 8% of claims requiring prior authorization and a mere 3% of documented claims being returned as uncovered. This is near completely pervasive coverage. Our go to market strategy with Triassence is showing clear signs of momentum in the early days of our relaunch. Now that we have all the necessary buy and bill commercial infrastructure in place, we'll be expanding its use into the ocular inflammation market, such as cataract surgery, the largest market opportunity for Triassence, and the one that we have not marketed into to date.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We recently hired Chad Brines to lead our specialty brands sales team, which includes Tri Essence. One of Chad's chief responsibilities is to drive our strategic efforts with Triestin's in the ocular inflammation market. Stad has extensive experience selling buy and bill ophthalmic steroid products in this market, positioning him well to lead this critical initiative. Based on feedback from our physician customers, we believe these new go to market approaches will result in unit demand growth, which will begin to show in the fourth quarter and into 2026, especially as we move more resolutely into the ocular inflammation market. I couldn't be more excited about the transaction we announced in July with Samsung Bioethis.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We secured the exclusive U. S. Commercial rights to their biosimilars ophthalmology portfolio. That includes BioViz, an FDA approved biosimilar referencing Lucentis and OPUViz, an FDA approved biosimilar referencing EYLEA, two of the most widely used anti VEGF therapies for retinal diseases. Importantly, both products have interchangeability status.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

These products will integrate seamlessly with our existing commercial infrastructure, and we expect to leverage our significant commercial flexibility to compete aggressively in this market. By combining Harrow's deep retina expertise with Samsung's key learnings from its prior BioViz launch, we're uniquely positioned to refine our offering and compete effectively in this large, competitive and contested market. We look forward to sharing more about our upcoming commercial launch soon. ImprimisRx showed signs of sequential recovery following seasonal softness in Q1. April was a record month for the business and momentum continued throughout the quarter with steady growth across key product lines.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

The team is driving several initiatives to enhance gross margins, drive revenue growth and improve operational efficiency. The business just continues to generate cash flow, contributing meaningful value to our stockholders. To wrap up, Arrow is firmly in growth mode, and we're just at the beginning of an exciting journey. I couldn't be more energized by the incredible team we've assembled, the strategic products we've brought into our portfolio and the tremendous opportunities that lie ahead. The best is yet to come for Harrow.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

With the accelerating performance of VIVI, Triassence finally positioned to enter its largest market, iHizo hitting a growth stride and the recent addition of Biclovy and a robust pipeline of biosimilars on deck, not to mention our proven compounding business, ImprimisRx, we now cover the full spectrum of high value ocular conditions. Our nationwide GPO partnerships, specialty pharmacy reach and track record of commercial execution create powerful leverage. Each new launch accelerates uptake of the others by deepening our presence in surgical centers and retina practices and general ophthalmic practices and even in optometry offices. Combined with a seasoned leadership team, strong balance sheet, well defined R and D roadmap and an active M and A strategy, our runway for growth is substantial. Simply put, we've assembled the right products, platforms and people to redefine what success looks like in the ophthalmic market and the most significant gains lie ahead.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

With that, I'll turn it over to our operator to open the line for questions. Operator?

[Operator]

We will now begin the question and answer session. To ask a question, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Our first question comes from the line of Chase Knickerbocker with Craig Hallum. Your line is now open.

[Chase Knickerbocker, Senior Equity Research Analyst - Healthcare at Craig-Hallum Capital Group LLC]

Good morning, guys. Thanks for taking the questions and congrats on the progress here. Mark, maybe just first on VeeVee. Can you help us a little bit with kind of any kind of business rule changes within there as you guys onboard Apollo Care, etcetera, as far as how we should be thinking about ASPs sequentially from here? Is it just kind of normal seasonality where less co pay assistance kind of brings ASPs a little bit higher?

[Chase Knickerbocker, Senior Equity Research Analyst - Healthcare at Craig-Hallum Capital Group LLC]

Are there any other changes that you've made that you kind of expect some sequential improvement to ASPs through the year?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Thanks for the question, Jason. Good morning. Yes, so on V by ASP, I think a couple of things. One, in terms of new business rules going forward, we continue to tweak our algorithm, you know, but it's it's really, you know, these are really minor things. At this point, the the business rules are, I think, performing very well.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

The reality, though, is that between Q1 and Q2, we kind of needed to wash, if you will, all of the existing VIVI patients through those new business rules for the VIVI Access for All program. And what I mean by that is, at the beginning of the year, you had a lot of patients, especially with copay resets, that were paying $304,105 $100 out of pocket for VeeVai. And the reality is that many patients just can't afford that level of payment for a product like VeeVai, or really any product for that matter. And what the VeeVai Access for All program allowed those patients to do is to continue to stay on therapy and to be able to access the product at a much lower cost. Those are patients we probably would have lost anyway.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

But the bottom line is that as we got through Q2, and certainly now in Q3 with the existing business rules, you know, we're really seeing what the ASP should look like. Now, with ApolloCare, we have been losing patients. So we have patients that have coverage, but that are not able to use their coverage because the plan may have not been contracted with our existing pharmacy provider. And with this expansion of the network, we should be able to capture many more high value patients into the overall ASP calculation. So we're thinking that, certainly by the end of the year, we should see, as I said, a bias upward in terms of ASP, but we're also very confident that from here, given the fact that all of those existing patients have washed through these business rules, that we do have stability to our ASP.

[Chase Knickerbocker, Senior Equity Research Analyst - Healthcare at Craig-Hallum Capital Group LLC]

Got it. And maybe just on the biosimilars respect that we're going to get an Analyst Day in September. But any thoughts as far as kind of contribution to the model in 2026 and 2027? Because some of these biosimilar launches can be pretty quick uptake considering their existing markets. So any any thoughts on, you know, particularly the Lucentis biosimilar as we think about '26 and '27?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Well, we're still working. By the way, I do I've done a lot of talking so far. So I'm very excited about the Samsung portfolio. But there's one person who's even more excited than me, that's Andrew. So I'm gonna let him take that question.

[Andrew Boll, Founder, CFO & Corporate Secretary at Harrow]

Hey, Chase. Thanks, Mark. Like Mark said, I'm really, really excited about the biosimilar portfolio. Samsung is a leader in biosimilars and Harrow is, we think, a leader in ophthalmology. And definitely we have a vision of being one of the top ophthalmology pharma companies in The US, and we see this really as a perfect marriage between the two companies.

[Andrew Boll, Founder, CFO & Corporate Secretary at Harrow]

I think in regards to contribution in 'twenty six, our hope is that we'll be able to launch BioViz in 2026 with having immediate uptick in product demand for that product. There's an existing market for it. We've got a great strategy, go to market strategy. There's not a whole lot we can talk about right now as we're kind of working through this transition period with Samsung and their prior partner. But I think once we are through this transition period, we can talk a little bit more and be more specific about timing of that launch or relaunch and also the other biosimilar in the portfolio.

[Andrew Boll, Founder, CFO & Corporate Secretary at Harrow]

But I want to reiterate, I think out of all the deals we've done, this one is probably one of the ones I'm most excited about. It's incredibly synergistic, fits right into the commercial infrastructure, fits right into the relationships we have on the retina side, and it fits really well with AHIZO and with some of the other buy and go products. And so we get a ton of leverage with the product. We know where these products are being used. We have relationships with those customers already.

[Andrew Boll, Founder, CFO & Corporate Secretary at Harrow]

And I think it's gonna be a lot of it'll be a really pleasant upside for a lot of investors and people looking at the long term value of the company.

[Operator]

Thank you. Our next question comes from the line of Steve Seedhouse with Cantor. Your line is now open.

[Steve Seedhouse, Biotechnology Equity Research at Cantor Fitzgerald]

Good morning, thanks so much. First question, I just wanted to ask about the growth in new prescriptions in the second quarter for VeeVai. How much of that was driven by Clarity C switchers? And are you largely through any expected bolus of patients from Clarity C now? And then just second part of that question, you mentioned you're sort of cautious about growing too much faster for the remainder of the year for VIVA and your stockholder letter.

[Steve Seedhouse, Biotechnology Equity Research at Cantor Fitzgerald]

I'm just wondering how much growth would slow naturally from the Clarity C patient bolus sort of unwinding? Or are you also expecting a slowing of sort of the organic growth ex CLARITY C?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Hey, thanks for the question, Steve. I'll tell you just straight up how many units came from Clarity. So it's about 7,000 or so during the period. And in terms of those patients falling off, you know, those patients typically have been as loyal, I think, refillers or even more loyal than the VeeVai experience that we've seen so far. The other thing that I would mention that I think you're hitting on, which is true, and I kind of alluded to this a little bit in the stockholder letter, is that we really didn't count on VeeVai taking off in the way that it did in terms of our forecasting, in terms of our production with our supply chain partners.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And I don't want to say that we got caught flat footed. These are very luxurious problems to have, but we had purposely, I would say, not poured gasoline onto the V. V. You know, with intention because, you know, we really don't we want to make sure that if an existing patient needs V. Or if an NRx comes in that we can supply the market.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

I think over the next couple of months, we're going to have far greater clarity in terms of, you know, acceptable levels of safety stock with VeeVee. And as I said in the stockholder letter, because every unit of Veevae is profitable, nearly every unit is profitable, we feel really confident in entering a new investment cycle and, dramatically, hopefully, taking additional market share, probably starting that process at the end of the year and really setting us up well for 2026.

[Steve Seedhouse, Biotechnology Equity Research at Cantor Fitzgerald]

Thanks for the color on that, Mark. And just I wanted to also follow-up on the Specialty Branded and Triassin segment. So the guidance here obviously is pretty assertive. I mean, like more than a 7x increase, half over half from $6,000,000 to the incremental $44,000,000 And I know you mentioned the ocular inflammation market, but you did say that that would sort of kick in in force in fourth quarter. So I guess, what are the expectations for third quarter?

[Steve Seedhouse, Biotechnology Equity Research at Cantor Fitzgerald]

And what other assumptions are you making there to grow revenue so acutely in that segment really in fourth quarter, it sounds like?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Yes, I would say that the X quiescents products from that basket has not performed to the levels that we expect. We are seeing a rebound and we need to, I would say, and we expect to probably double the revenue levels of those ex Tri Essence products certainly by the end of the year, we think that's achievable. But what really what is not baked in, think is Tri Essence revenue. You know, there is a reasonably decent WAC price there. You know, I covered the coverage levels in the opening remarks and in the stockholder letter, there is pervasive coverage for Tri Essence.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And, you know, without going into a whole lot of detail, you know, we don't need to capture a whole lot of market share, for example, in the post surgical ocular inflammation market in order to hit those numbers. But you're right, we do need some things to go our way. We've got new leadership, you know, helping us drive value for that part of our portfolio. And we have work to do, to be clear. But when we look at the math, we think it's achievable.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We're also seeing meaningful improvement in Tri Essence in the retina market actually in the third quarter. And I think I alluded to that both in the stockholder letter and the prepared remarks. So Tri Essence is on the upswing. It really is. We have great coverage, same with iHizo, frankly.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

IHIZO is probably more set up to exceed and, you know, I think we can get there with Triassicence. It is going to be a challenge, though.

[Operator]

Thank you. Our next question comes from the line of Mayank Mamtani with B. Riley Securities. Your line is now open.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

Good morning, team. Thanks for taking our questions and congrats on the progress. My two questions are a follow-up to the comments you had, Mark, earlier. So on the stabilizing of ASP, you imply that the net price is sort of reset at where you've been in 2Q. Is that sort of, just to confirm, is that kind of the case that you expect that to be sustained at the levels that you you kind of found yourself in 2Q?

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

And then, you know, how much do you anticipate the unit volume to expand, you know, particularly driven by new patient starts so that I'm thinking longer term, you know, if your peak year sales assumption isn't materially altered? And then I have a follow-up.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Yeah. So in terms of the ASP for Veevae, are comfortable with sort of the current levels of ASP for for the product. As I said,

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

I think that we should see a a bias to ASP, you know, possibly improving certainly by the end of the year. That's going to be bolstered by improved coverage and really this overall ratio of, you know, higher paid claims versus lower priced prescriptions. So all in all, though, I mean, and I think we've talked about this in the past, it's really about the average for us. We're going get some units that we make a lot of money on or more money on and some that we make very little money on. But the average is very acceptable.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

In fact, the current average is in excess of where we were certainly in 2024, and it's significantly ahead of what we had planned for prelaunch. So we're actually very happy with where we are with ASP. And I think as it does improve, and I do believe it will improve, we're seeing signs of that. You know, I think, you know, we'll be in good shape on the ASP side. In terms of growth, I see the weekly prescriptions come in. It's kind of one of the cool things about working with these specialty pharmacies. I can literally monitor the prescriptions and sometimes I do, you know, hour by hour. It's kind of like watching a ticker frankly.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

You see the prescriptions come in and we're doing really well on the NRx side of things. Those NRxs are not yielding, even in the midst of the summer, kind of a summer low, typically that you see with people going on vacation, patients going on vacations and prescribers, we're still seeing those NRxs come in, terrific. And by the way, we have a very modest sales organization. We have not, as I said to Steve earlier, we have not invested heavily as we intend to, or more heavily, into that organization. Once we shore up supply and get really comfortable from with our safety stock and and make those investments, you know, I think you're gonna see, you know, many years of growth.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

I think I I've said to other investors, I mean, we're gonna have many, many years of growth with with Veevae. We don't see that yielding, and, you know, we're in we're in a really good place with with Veevae.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

Understood. Thank you. And, also, would be helpful to hear a bit more on the AHIZO end of two q stocking dynamic, how similar or different it is to what we saw back in 4Q. I understand that was the end of year.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

And if there's any other stocking dynamic we need to be aware of for any other branded products. Thanks for taking the question.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Yeah, I would say that no concern on additional products in terms of the stocking dynamic, but I will say this with iHizo, they just and I said this in the letter to stockholders. I returned from the ASRS meeting in Long Beach, California. And I remember when we acquired the product, we did some advisory board meetings and I remember doctors saying, you know, what do I need this for? You know, what I'm doing is okay. And I gave them my analogies of, you know, really loving my BlackBerry until I ultimately got the iPhone and that what they were doing in terms of their anesthesia protocol for intravitreal injections as an example, in many cases, not an efficient process.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It costs them not only in terms of supplies and materials, but more important for them, their time. And with one dose being required in order to anesthetize an eye for, for example, a intravitreal injection, iHizo adds tremendous value to these practices. And when I went to this ASRS meeting, I really saw this thing catching on. It was clear. The looks that we were getting when we initially were going to market were pronounced, and the reception that we're now receiving for whatever reason, maybe it's the Samsung deal, maybe it's now, you know, people, more and more offices getting access to Triassence, the great coverage that we have.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It is a different ballgame. And more and more accounts are adopting IESA, they're opened IESA, they're seeing the benefits of this product. And this is one where I think there's really nice upside based on the guidance that we gave earlier this year. So we're excited about iHiso for the balance of the year. And really, once again, we still have a very, very small percentage of the overall number of intravitreal injections that use iHizo.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

So a lot of upside. And we have a great leadership team selling that product.

[Operator]

Thank you. Our next question comes from the line of Tom Schrader with BTIG. Your line is now open.

[Thomas Shrader, MD & Healthcare Analyst at BTIG]

Good morning. Thanks for all the details. A little bit on the difference between the two specialty pharmas for you. Is Apollo better for you because they're more integrated with existing plans? And can you steer patients that way?

[Thomas Shrader, MD & Healthcare Analyst at BTIG]

And IHIZO for all, is that a are you making it easy for people to try IHIZO so we may have some average selling price swings for IHIZO in the short term with the hope of growth down the Road? Thank you.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Thanks, Tom. Yes, so in terms of the difference between PHIL and ApolloCare, PHIL is very well known, I think within ophthalmic practices and even optometric offices in The United States. So a lot of offices are very familiar with the PHIL platform.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We use ApolloCare as a copay card vendor. And so they also are once again, very, I think, well known within the ophthalmic market. And now they're expanding into the specialty pharmacy market. So the thing that they offer us, as I said earlier, is that they have contracted with so many plans. And we have seen in terms of how we manage ASP, you know, literally day to day and certainly week to week, that we get prescriptions in that could be covered by, for example, a commercial policy, but that ultimately become $59 prescriptions because Phil, for example, may not be contracted with that plan.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And so for us, this is an opportunity, I think, to capture more commercial covered prescriptions through ApolloCare. As I said, that's one of the reasons, and there are a few other reasons why we think ASP is stable and has a bias towards improving. In terms of IHEZO4ALL, the point of IHEZO4ALL is that we believe every patient who can benefit from IHEZO should have access to it. And I think there has been a misnomer within even some of our customers that they need to pick and choose patients that IHIZO should only be used for, you know, a fee for service patient or that they need to really do a deep dive into a benefits investigation before using IHIZO. And we have such a powerful message in terms of coverage.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It is really, I think coverage that any product would envy. And when we spread that message and let our physician customers know that they can actually use Viva, use Ihezo for all of their intravitreal injections, you know, and that there's no reason to pick and choose. That's really what this program is about. So it's about greater depth within existing accounts. And as I think that message gets spread in terms of, you know, not only the experience of what their colleagues are having with IEZO, but the value that it offers these practices will have more and more new account starts.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And that's what we're seeing in the third quarter, by the way. As I said, you know, I think just after, you know, early into August, we'd already eclipsed the number of new account starts for iHizo than we had in the entirety of the second quarter.

[Thomas Shrader, MD & Healthcare Analyst at BTIG]

So so more than free drug, it's help showing that they can get it covered?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Yeah. It's not yeah.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It's not about free drug. It's about reimbursement confidence. It's about confidence of coverage. I don't think that these practices know how pervasive our coverage is for Triassence, for IHIZO, and even we're seeing improved coverage for Veevais. So, you know, coverage is friend with those products.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It's their friend with those products, and we're spreading that message.

[Thomas Shrader, MD & Healthcare Analyst at BTIG]

Great. Thank you.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Thank you, Tom.

[Operator]

Our next question comes from the line of Lachlan Hanbury Brown with William Blair. Your line is now open.

[Lachlan Hanbury-Brown, Research Analyst - Healthcare at William Blair]

Hey, guys. Thanks for taking the questions. I guess, you know, Veebai is the number one prescribed product per prescriber in dry eye. Does that kind of performance, you know, warrant more investment in the commercial team or the infrastructure to increase that? Or or how do you how do you sort of expand that to add new prescribers?

[Lachlan Hanbury-Brown, Research Analyst - Healthcare at William Blair]

I know you talked about investing in it once you've secured supply, but can you elaborate on maybe what that looks like?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

There are parts of the country where if you go to talk to an ophthalmologist or an optometrist, they don't even know about V. V. I. Of them have not even heard of V. V.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

I. We don't have feet on the street. We haven't done a lot of marketing into many communities across the country, significant communities. And we need to be there. And we're not there because we haven't invested, I think, in in in feet on the street and in marketing, but, you know, that's been because we're a little bit weary of pouring fuel onto the VivaI fire.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

As I said earlier, we have got to get sufficient safety stock of this product. The consistent with our our forecast and the new forecast that we have. All of that said, though, we have sufficient supply. I mean, we sell and we very well likely may sell all of what we have certainly for this year, our stockholders are going to be very, very happy. So we are in great shape, certainly through the end of the year.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And then as I said, we're setting up well from a supply chain side to to be able to supply the market, I think more robustly in the 2026 and beyond. That is going to allow us and, you know, if someone like Andrew, who's a pretty conservative person is going to say, okay, now let's invest in Veevae. We're making money on these prescriptions. We've got the access figured out. We know where we need to be.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We know where those markets are that, you know, they really haven't heard of Veevae, or they're not prescribing it. And as alluded to, the data shows that when we capture a prescriber, when they start using VeeVi and they come in, you know, their patients come back and they say, wow, this product didn't burn, it didn't sting, I didn't get this weird taste in my mouth, I like this. Then the prescriber feels more comfortable using it on more and more of their patients. And as you said, it is the number one prescribed dry eye medication per prescriber. And, you know, we have a great clinical story to sell, and we've got to get our supply chain dialed in a little bit more robustly.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And then and then we'll, I think, see even greater growth next year.

[Lachlan Hanbury-Brown, Research Analyst - Healthcare at William Blair]

There you go. Thanks. And then on the the poll agreement, you said that expands your network and distribution. Can you give a sense of how much that expands the network or your distribution ability, or is it more about that coverage element you were talking about earlier of having more of those commercial scripts covered than it is the sort of physical distribution?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It's the thank you for that, Lachlan. It's the it's the the latter and not the former. It is about getting scripts covered. We have said to our prescriber partners, listen, we're going to help you get access to VeeVi for the most difficult patients in your practice, for patients with no insurance, patients that may not have means. We're going to partner with you and make sure that everybody in your practice who can benefit from this product will get access to it.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And at the same time, you know, as part of that, you know, they see the clinical benefits, they're also sending us the commercial scripts. As you said, we get more units per prescriber than any other medication. But the challenge for us in terms of delivering a sturdy ASP is to be able to take a commercial covered script and financially benefit from it. And the relationship with Apollo Care is going to help in that regard.

[Operator]

Thank you. Our next question comes from the line of Jeffrey Cohen with Ladenburg Thalmann and Company. Your line is now open.

[Jeffrey Cohen, MD & Director - Equity Research at Ladenburg Thalmann & Co. Inc]

Hey, good morning, Mark and Andrew. It's been brought up a couple of times, but I wanted to get back to it and hopefully you can walk us through bit of information as far as specialty sales team out there that you have now and how you'd expect that to grow into back half of the year q three, q four, and how that's helping on the, awareness drive and and education and actual number of feet on the street? Thanks.

[Andrew Boll, Founder, CFO & Corporate Secretary at Harrow]

Company generated revenue for the sale It's

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

a thanks, Jeff. You know, as as I said, I I I don't think, you know, that we have done as well as we should have and could have with those non well, even Tri Essence, I would say. It's been a fairly slow launch. But the question is what is possible? And our expectation is that by the end of the year and very likely into the fourth quarter, we should see a revenue run rate that is sort of consistent with where these products were when we took over them.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Tri Essence is a totally different story. We do have very high, I have very high hopes for that product. I'm particularly excited about entering the ocular inflammation market. I think it's a very, very big, big opportunity for us. It's a great product.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

It's trusted. It's, you know, it's proprietary. But importantly, at the consumer level, it has a $37 co payment. It is the lowest out of pocket cost at the consumer level of any product in the category. And so if you're a prescriber and you want to save your patients money in terms of actual out of pocket costs at the consumer level on a month of per month of therapy, it's certainly the lowest of any product in the category, so it offers tremendous value.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

You know, that said, Chad is coming on. We're staffing him up. But I am going to and we are focused on that Triassence opportunity. We intend to launch Biclovy at the Hawaiian Eye meeting in the January timeframe. Early next year, we'll probably get some sales, some stocking orders in the fourth quarter for Biclovy, but modest.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

But we're really focused in as a stockholder. They want us, I think, dialed in on that Triassence opportunity in the ocular inflammation market. At the same time, Allie and her team are doing a terrific job and I have seen it, I saw it at the ASRS meeting in Long Beach, you know, growing unit volumes of Triassence in the retina market. So I think we're in good shape. As I said earlier, we have work to do with that portfolio.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

But I think there's we're going to get there. I think we're going to get there. We're seeing good signs of growth in the third quarter, and I remain confident we can get to that number for that basket of products. Now as I all I wanna make one thing also clear. I said this in the letter of stockholders.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

We're gonna underperform in certain parts of our business, but other parts of our business, we're gonna overperform. And so all in all, I think we're going to do really well for the overall period. Triassence by the fourth quarter is when I think we could, you know, certainly overperform for the period. Aeizo is an overperformer, and Viva could could overperform well as as as well.

[Jeffrey Cohen, MD & Director - Equity Research at Ladenburg Thalmann & Co. Inc]

Got it. Thanks for taking the questions.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Thank you, Jeff.

[Operator]

Our next question comes from the line of Thomas Flaten with Lake Street Your line is now open.

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Yeah. I appreciate you guys taking the question. Mark, in your prepared comments, you said something that caught my eye about, you know, right now your your solutions are pharmaceuticals, but that might evolve. Can you can you dig into that a little bit for us?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Sure. We are and this will be, I think, described further when we get to the the investor and analyst day. We never talk about our pipeline. And at that Investor Day, you know, we're going to talk about some of our pipeline products, some of the things that we're working on, and some of them are not pharmaceutical initiatives. And so I want I want our investors to, you know, to be aware of that.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

The key for us is to be an ophthalmic disease management solution business, and those solutions don't necessarily need to be pharmaceuticals per se. They might, you know, exist outside of purely a pharmaceutical product. But I have to say, because I've done so much talking today, and I promise on our next investor call, I'm going to have Amir talking about the science. We're going to have head of commercial talking about commercial and Andrew talking about the financials. So you'll hear a lot less of me on the next conference call.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And at that investor and analyst meeting, you'll really have a great opportunity to meet all these people, to meet commercial leadership, the folks that are selling IEZO, that are selling Tri Essence. And we're also planning to have a number of customers there, physicians who use the product and experience these products, and they can talk to you about their experiences firsthand.

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Excellent. And just one quick follow-up. You mentioned the refill rates in 2024. I was curious if in 2025, seven and a bit months in, if the refill rates in 2025 are annualizing at kind of that nine refills per patient per year rate.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

I think we're on track. I mean, you have to put it, it's an amazing product. It just feels so good in the eye relative to other products. We just had a campaign, there was a terrific meeting called Women in Ophthalmology. And we had a campaign at that meeting that I came up with a long time ago.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Commercial team didn't like it, but it was called Cut the BS. Cut the BS, and it's kind of sort of a risky title, but what BS stands for is burning and stinging. And these doctors really identified with the concept of cutting the burning and stinging. And a lot of other products out there, especially, you know, some of the recently launched products, they can't say that they have problems with burning and stinging. And we don't, you know, we have a really terrific tolerability profile.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

And the person who cares most about that tolerability profile is the patient. When the patient gets relief, they don't have the burning and stinging and their dry eye disease is being alleviated, they refill. And when you get that refill rate and our refill rate steady Eddie, know, you see, know, we don't anticipate that yielding anytime soon, Thomas.

[Operator]

Thank you. Our next question comes from the line of Yi Chen with H. C. Wainwright and Company. Your line is now open.

[Yi Chen, MD - Equity Research at H.C. Wainwright & Co., LLC]

Thank you for taking my question. Could you provide some comments regarding the timing difference of the VYE prescription growth in the quarter and also the recorded revenue for the quarter? And also, do you have an estimate time line as to when VYE could become the largest cyclosporine based dry product?

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Wow. Andrew, do you wanna I'm gonna you start. I gave you the first one. I'm gonna give you maybe the last.

[Andrew Boll, Founder, CFO & Corporate Secretary at Harrow]

Hey, thanks for the question. With all the products this quarter, we didn't see a whole lot of stocking dynamics. So the unit demand and script numbers are pretty tight as related to the revenue recognition during the quarter.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Timing and by the way, on the timing of being the top banana in dry eye, our primary goal with the franchise, as I said in the prepared remarks is to be the number one cyclosporine in The US market. Secondarily, we intend to be the number one anti inflammatory in The US market. I think the tertiary goal would then be the number one most prescribed product in The US. And that's when I talked to Maria, who's sort of the CEO of that franchise, that's the goal. You know, primary is to be the number one cyclosporine.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

That's what she's driving towards with her routine every day.

[Operator]

Thank you. And we're currently out of time. I will now turn the call back to Mark Elbaum for closing remarks.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

Thank you, operator, and thanks, everyone, for the questions and for joining us today. We continue to build on our strong momentum, we remain focused on driving sustained growth and expanding our impact across the ophthalmic space. The addition of experienced senior leaders to our team further strengthens our ability to execute with excellence and scale with confidence. Thanks to the efforts of our Harrow family. We're excited about what lies ahead and look forward to sharing more progress in the coming months to come.

[Mark Baum, Founder, CEO & Chairman of the Board at Harrow]

If you have any further questions or need additional information, please don't hesitate to reach out to Mike Viega. Once again, mbiegaharrowinc dot com. This will conclude our call.

[Operator]

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Mike Biega, VP - IR & Communications
• Mark Baum, Founder, CEO & Chairman of the Board
• Andrew Boll, Founder, CFO & Corporate Secretary

Analysts

• Chase Knickerbocker, Senior Equity Research Analyst - Healthcare at Craig-Hallum Capital Group LLC
• Steve Seedhouse, Biotechnology Equity Research at Cantor Fitzgerald
• Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities
• Thomas Shrader, MD & Healthcare Analyst at BTIG
• Lachlan Hanbury-Brown, Research Analyst - Healthcare at William Blair
• Jeffrey Cohen, MD & Director - Equity Research at Ladenburg Thalmann & Co. Inc
• Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets
• Yi Chen, MD - Equity Research at H.C. Wainwright & Co., LLC