HROW - Earnings call transcript Q1 2022

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Operator

Good afternoon, and welcome to Harrow Health’s Q1 2022 Earnings Conference Call. My name is Allison, and I will be your conference operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-session.

As a reminder, this conference is being recorded. to Communications call Harrow and like Webb, to Health. now of Director Investor would turn over the Jamie I Relations for

Jamie Webb

first Thank to call. afternoon, Good quarter Health’s you, conference XXXX and earnings operator. Harrow welcome

we remarks include federal company’s securities Before that meaning within may today, remind forward-looking let you begin the the laws. statements of me

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

conference and reports and see and the XX-Q most recent Securities list description please may Factors of XX-K risks Form on Harrow Exchange quarterly on Commission. those of and the uncertainties, section a subsequent Form annual company’s Health’s Risk results and the projected. from with For filed as report information, financial any contains today. obligation or update to statements, materially any otherwise. intention information only Harrow revise differ or or This events because time-sensitive of or forward-looking future is whether new accurate projections disclaims call of those

net on both press comparable core of of diluted Additionally, received you and earnings release. as core as of such directly results a core any now earnings copy are is non-GAAP company’s adjusted metrics, available financial income, non-GAAP should refer release gross website. and By earnings, with Harrow core in to share. to GAAP will included as measures per the have specifically the stockholders, the the which letter most adjusted well A measures net and/or margin, income EBITDA reconciliation

received company’s of copy, please If Relations www.harrowinc.com. not you website, to the the Investor have go a page

some With Andrew Chief and get is question-and-answer Joining Andrew Officer, Executive to that, Mark turn the discussion our financial Mark Andrew? me things prepared Baum; over Officer, are of call today’s to Financial L. with I’d call metrics, the to Boll. remarks to started on Harrow’s short a like go new prior going over Harrow’s Chief session. to

Andrew Boll

as which Jamie called included earnings new release in afternoon. reporting letter non-GAAP And figures we core mentioned, are are Good and to stockholders. results our

expect We well. be to future as these in disclosures figures included

to gross is intangible core discussion are a related end last gross about to his begins and drug GAAP more briefly which providing quarter, with NDAs transparency margins basically non-cash add community principal primarily margins, for expenses, revenue investing year. earnings Mark amortization want at business. our amortization of regarding our intent us clarity Before In the is for short, explain of I provide the these generating metrics, of branded our the the but which we acquired to with the asset back the

mark the to and we how hand into performed extent, to a our income things diluted quarter. gains, metrics new metrics we future related investment net involve core such share and, for add With as NDAs the example, mentioned; more amortization, through amortization hope business; net PPP core these potentially, such our is backs for allow losses Mark future, investors Our and jump off each core operationally, earnings. incur useful, extraordinary a the best the to year assess asset to now of a value Eaton with of and losses, along to position, gains forgiveness Melt of investment method our one-time last we related NDAs, additional market the equity precise that explanation, which as how insight both loan. the acquisitions, organically certain our include intangible just and those the as to In recorded we grow into such I’ll and I income as quarter fair to gain per may and our

Mark Baum

today’s us And everyone joining for call. to thanks thanks, and Andrew, on

I of I close trading posted XXXX stockholders, March earnings jump I’d provide our of first Before today. said, relations results and do, ask corporate highlights as like With on consider letter into reviewing website started, then first that release, were our all get just to quarter the after we’ll Q&A. ended I presentation, some the which please usually to the our that the of XX, of investor for section and quarter XXXX you

quarter first XXXX belief financial our operational will Harrow and that a have results Our for validated Health. be year breakout

over over prior the only did million, increased key increase seventh many making consecutive of records in sequential our XXXX, $XX.X to metrics. but not quarter revenues they financial quarter the also quarter the quarter, quarter, first year the XX% of XX% During nearly first

the key mid early with commercial $X.X share was of net June re-launch AMP-XXX compared deck, of EBITDA we first XXXX. year. prior was for and this will Adjusted the AMP-XXX, million been Core into last and per of on of $XXX,XXX XXXX. quarter profit we team first first all first that $XX.X a for the for distribution for fourth XX%. quarter are gross year and the $X.X was the IT talent record newly XX%, XX In in first quarter $XX.X for XXXX Operationally, $X.XX our quarter was new technologies ready profit year our million. period our target this with acquiring our have was of of XXXX, million, platform. year’s PDUFA of compared Rest action we increase XX% to assured on of year. investing Core infrastructure, period. launch get million launch date of First for net integrating acquired the with products with margin the in October X% be approval earlier during Core gross diluted to of of gross a this That’s the quarter XXXX. core prior $X.X in and compared in of income the million increase XXXX, over sequential preparing regard, provided income net over quarter hands in period XXXX the quarter compared branded same the $X.XX, a income

pharmaceutical As conference should XX the revenues have from or sales I additional the ladder contrary, continue years be pharmaceutical larger want higher. to eight of straight. approval the that continue these we in past to gross on branded to products I products products. exciting anticipate than they margins resulting months AMP-XXX a this add floating grow formulations will to last expect also be from portfolio mention that that off to at overall branded FDA as the rather our pharmaceutical hunt for not our few believe gross our compounded and revenues we ophthalmology, cliff, compounded within them products to because I our calls, from will for margins eclipse that’s mentioned to of I And on for pharmaceutical the falling products, also products. time be from

space. engaged distribution we partners work handful fact, while leverage there completion transactions stages. are potential the In potential we and platform to us various specific excited highly And are a of and that commercial pharmaceutical I currently remain deal, seem at in motivated the guarantee of ophthalmic with within any Harrow cannot

itself, the that meaningful October growth. product And just has XX date, market strong launch and speaks We AMP-XXX, for potentially annually presence. PDUFA million continue for XXXX a It approach today as presented see of the a procedures which we to a reimbursable organic by Harrow exceeds XX, commercial opportunity

MOXEZA, pharmaceutical to MAXITROL underway, the addition and development re-launch product gain large that families FDA initiatives is strategy In the produce if of Melt continued a expect internally wasn’t following own our with Surface million major MAQ-XXX, finalize are slated are traction. address to growth we milestones of and we and the Pharmaceuticals, in space. planned that AMP-XXX, of both and launch to the enough, several X that IOPIDINE, from unmet shares, the value soon development seriously commercial And of starting other developed which needs meeting Eaton ophthalmic to

operator I have your take pause let’s Now, for to questions. will Operator? questions. our poll

Operator

Please Cohen ahead. of Ladenburg Thalmann. Our Instructions] go today come first from we’ll [Operator question Jeffrey

Destiny Buch

you this that, organization on during the is like is any what on of of change quarter? looking at Thank And our the Destiny terms start actually during To there Hi, for any the sales accounts maybe, in Jeff. side moment? was the other then size added you taking there your have quarter? for questions. new And

Mark Baum

Thanks for Destiny. the question

question relates well I think as sequential the the it’s really story. the to and and growth growth, the growth year-over-year same as

that but people, sales so with It new going accounts serve AMP-XXX, it’s and one of led we users grateful that team accounts, month accounts yet that’s quarter, and then of And to Saharek, who we growth really to excited accounts it’s of really the this a expanding well, just to we from is we and candidates as tremendous within are along we the approved. that’s be incredible, XX But John bring by where service think, landing up us accounts more and at on the now continue depth our the see after from, our about have, the continue greater that have, month, launch doctors to be the And more we million always number every We each AMP-XXX able are job. make in continue the accounts to dollar to that have. these new them, month, and after so platform, we’re using the accessing platform. number amazed be every because that don’t potential not quarter interested of plus more what and quarter I’m came done accounts. gets if

Destiny Buch

I it. got

on the What next then regulatory you I then evaluation? timing you may is idea press about required data. any are release And recently there Okay. take in the the And it here? to side? next MELT-XXX, clinical And out terms steps the put how was wondering, maybe a of top-line

Mark Baum

Sure.

de-consolidated, put you company was is it developing. to And a your as of study. able Harrow they is Catalent’s XXXX a is It’s was subsequent I MELT-XXX other, and that in set We successful. complete only is three atrophy still pharmacokinetic the that started was an up say Pharmaceuticals One XX% that just midazolam technology. that the utilizes and that Melt MELT-XXX. the question, Melt was referenced, we financing. So to is out in back study Melt Zydis complete announcement Health. an MELT-XXX, we company and company we products own and recently to a a And in external fact able were that are of to there proprietary subsidiary

And reference MELT-XXX to candidate. compared is which drug, the so product favorably IV the midazolam

the by And sufficient have they filing, terms data so to front at there believe only the NDA syrup, with not for intends active the available of currently team a has. precedents FDA or and for in in but was get that the in fact an that midazolam not also whether I the a next Melt syrup. data of steps, is determine filing in to of data the IV, And is ingredient form Melt approved similar

And that, so can get but proceed with in on of we’re more development. but really they need hopeful FDA, that exciting a they an filing, to the to it’s come front

when XX% in of the We as about have in commercially And confidence we’re we gets MELT-XXX I equity so interest excited Pharmaceuticals. that. about it said Melt tremendous approved, own

Destiny Buch

right. All an could Visionology you. us the for update you And then Thank it. us, platform Got give please? lastly on

Mark Baum

continue talked particular and chronic I meeting not at medications, of in ability millions was organization the Visionology and a terms to provide with and to to we happens calls, revenue a for quarter a it on customer an just ASCRS network about chap, to distributed value customer, national what of of customer in Visionology for with conference Visionology, dollars doctors, can is care to them met example, of to as tens the ability couple very customers. refills us, in and for in Visionology, assist be this great a the generator to confidence of for XX the large build be facilitating for about our it of the said I have Visionology, of but we last a develop Sure. going states.

to is, the is be valuable our for a doubling, we excited going and our It’s platform It’s which customers. there’s catalyst is, but customers. going more to think, I for value-add that and in provide not going to customers our stickiness, to a value come of said, as revenue, lot asset it it. I But to So be to create Visionology our than to and letter, going it about our referred definitely to to, a service back reason our stockholder I platform. remain

Destiny Buch

you our questions. All right. Got Thank for it. taking again

Mark Baum

Destiny. you, Thank

Operator

ahead. from Capital. come Please of will today go Nathan question next Aegis Our Weinstein

Nathan Weinstein

Mark, margins. Congratulations, to the quarter for you. of whole and and team strong another Thank strong growth Harrow continued Health

portfolio, a guess the ask of So existing just from were could strength organic the worth areas growth you I that product if calling question regarding I any out?

Mark Baum

manage really has side. across from growing in other delivered chronic some truthfully, as more doctors for prescribed the certain been as patients know, team side better as growth the probably areas eye as all the that You growth portfolio, well side. the just perioperative specifically, of to disease example, care help areas. the side, for surgical medications, chronic care chronic formulations segments faster see the than it’s on customers care focused that surgical our that dry But of were We on well did

So board it’s across just the candidly.

Nathan Weinstein

you the Can expected recently entail there follow-up just you. launches? one for about of Thank me of What preparing as and just that the what’s some you’ve the of outlook that’s branded the with of the talk numerous evolution regarding that those from And products. business activities introduction does terms undertaken in well? you. Thank and fantastic. Okay,

Mark Baum

Yeah, our side, first software hired Head integrating for of a Marketing products. are new we branded all, the in investments our platform, we fantastic market IT just into distribution access making of on

and to letter, referred the business. going big my to a are attract very able we’ve view, in of to these in make stockholder people that people impressive the some company. I the are personnel that Within just to difference big, been And the

changed organization. the I segment. about haven’t markedly and compounded think a for really as first number of handful branded required the we quarter the sales quarter that there’s additional that for that year, the last hasn’t had folks, of fourth segment the of in layers are in Destiny maybe of operations folks the the of But terms really asked the sales In are we from there for need, number well, example, organization, to that

place and results that team we marvelous resources, shareholders order that think to just see. I need and in of putting hopefully the doing the in talent of so, the going deliver the is in bringing a And kind job the successful, be our to processes are

Nathan Weinstein

balance seeing questions, Thanks And the throughout Great. taking just again forward looking the of progress the business we’re the with Mark. for XXXX. to

Mark Baum

you, Thank Nathan.

Operator

from [Operator Instructions] B. Our Justin ahead. go next come Securities. Walsh of question will Riley Please

Sahil Kazmi

the Hi, a through This some with, of Sahil to could sort and of questions team. the umbrella ratio the that any all on Justin. under the of Harrow NDAs significance from way progress Kazmi the launch? Good on segments quarter. Maybe for for just branded starting the add afternoon. transitioning color of the is Congrats in the couple branded how segment on us process, sort ahead AMP-XXX contributes the of shifting you

Mark Baum

and about bit transition the you do talk want timing NDA a that. on Andrew, to little process

Andrew Boll

Yeah, certainly.

sounds as a of completed mentioned, work -- that’s the Mark So preparing well, been of NDAs lot Novartis we’ve just affairs, A this the lot it’s been on on fill like, those work Harrow move last access new FDA, regulatory the of preparing update real making know within just all the the simple, Compendia, goes ahead or something the contract in to the working Compendia, it lot ownership. but customers the name. there’s artwork manufacturer, of with that, we that of hey, of file we to with working since the work really, the at end for to different with year. deal sure a distribution. And last market And

won’t done once that So, we the like ahead be so have work beat in mid-June, of clean we then actual a transfer all upon NDAs transfer. transfer to a getting positioned that really is ownership time. miss the should customers And

Mark Baum

agreed for there. The to that. done job has so and great about that, we’re to six-month a be target a that And team on process was to add

completed So to we in that the June time do intend have frame.

these precipitously is as some products to that the I we how compounded built branded revenue that more putting the May, muscles, month of as of and DEXYCU we coming terms happening success to, really the is depth below excited energy, and opposed the on. that is more, see creativity, XXXX, shift December We we and when percentage our I we’ve products a as acquisition not think ratio, think of to deserve, we reiterate, from see letter, little more the fall. certainly is In ratio the see because marketing revenue in bit that said, mandate along in is affects what even of really that greater doing to We said, come business continuing from exciting greater more with ongoing as we’re to what stockholder the more. overall But to with attention this Novartis accounts our and behind really Actually, this as an on day. of addition about work of And that And revenue AMP-XXX. see had had the revenue DEXYCU. with revenue, a to of on to in basis. products to I accounts that no to the they branded that contrary, enthusiasm we’re I platform revenue, And continuing products. into some see what changed the is to the XXXX, of and our going trend one that to want grow. And going that is with continue launch and here said, with them the giving continuing products I compounded And the the percentage that is DEXYCU, changed happen. month we

shift that available, as will opposed towards revenue continued delivering that believe products. our from exciting create becomes well, compounded our the is an as Hopefully, with are we your also to question? We that MAQ-XXX continuously more products, answers progress greater that even revenue, commercially product of that branded when and

Sahil Kazmi

No, the and absolutely. additions the you. our of really to That team and taking quarter Thank questions Thank new congratulations helpful. for the yes, was you all on well. as

Mark Baum

Thank you much. so

Operator

this like remarks. and back at turn we Ladies for conference session. I’d Baum any to closing will over time, conclude to the gentlemen, question-and-answer our Mark

Mark Baum

the Thank where employees have all is you, Harrow and contributions. an getting really Alison. I us point. And work the thank want this their for closing, hard And just provided are for These their in we to to personally place. exciting fuel

many would are years at at We place be would hope ago. we the we

we the enthusiasm long-term I here, the is, and medium, day I company. out are the and and day of and committed. and as think, Harrow’s resonates build number words, believe work been of implement Within partners experienced, just we hospitals a our It profitable The working in customers of our they’re get by as people group ophthalmologists, caliber employees, that gets good with as and I they’re products are In to is that growth other company, centers. palpable. confident US able surgery for plan, we talented, leading prospects being ever-expanding this an remain with by it optometrists, services and chosen and they’re near, ambulatory new and that evidenced to we’ve our to people the future, in we attract serve executives business with that the

company, everyone, in Harrow for attending So your today’s and thanks, Health. our for call interest

e-mail investor-related If call. Thank Jamie Webb jwebb@harrowinc.com. at you and this questions, will please conclude have you our any

Operator

presentation. thank And attending now conference today’s the you We concluded. has again, for

your disconnect may lines. now You

Harrow Health (HROW) 9 May 222022 Q1 Earnings call transcript