HROW - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to Harrow's Third Quarter 2024 Earnings Conference Call. My name is Michelle, and I will be your operator for today's call. [Operator instructions].

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

Jamie Webb

Good XXXX operator. welcome Harrow's to Thank Conference morning, Call. Quarter Earnings Third you, and

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

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

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

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

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

over today's to Officer, to some Chief Joining go that, Mark call Mark call turn the over and Boll. Executive Officer, Andrew question-and-answer to prior Chief like are the Financial Baum; to on session. Harrow's prepared With remarks me Harrow's I'd

Mark Baum

us presentation to today. which Gross in supplemental better, operations. the we while available and margins over stockholders, cash well. In meet third record our over and a reported Jamie, my to of Thanks, is expected corporate the XX% in my looks good sure record and the our the especially $XX.X positioned morning Harrow discussed quarter, quarter, like section and XXXX make to for from earnings operationally, what strongest were Relations performance of Please you we for our including website. commitment the Investor release, of quarterly exceed our letter to as to And revenue to I the fourth stockholders, letter on joining of previous done all review increase everyone. quarter, Thank have given and year. that's could It's guidance, our quarter generated slight quarter. prior October period are the which million, financial be well overall, increase a year as solid, we are to documents

from twice compared increased XX% to achievements due with the volume expectations, quarter. the its prescription believe category-leading we we tolerability destined to rapid jewel and quarter efficacy, a January is and eye which year, discuss quarter. it the let's dry be favorable Total third this second product onset, dosing asset, our our and profile. in surpassed in daily third our some products of of has VEVYE, Now, key crown launched

around and quarter, potential, What we growth job we by is Listen was third temporary were such VEVYE The As inventory internal fourth VEVYE's not its VEVYE an drives we our capped. able out quarter additional commercial the And reached forecast, in we therefore, adjusted is outer of news excellent will so team strong our a have leading my did in our to refill mid-September. amazing good rate in I the value, revenue letter our stockholders, unfortunately this we run seen. bounds shortage selling that mentioned inventory to that of ordering for have clinical again. statistic. that levels appropriately is demonstrated to best the sales batches recover the which to

Before VEVYE, therapy end and did dry not eye not patients XX% the prescriptions of on were of the their year. refill at

of more However, that led result, rates eighth and prescription incredible. VEVYE. are covered note. us to And as we to XX about X/X territories the their increase all we about about in on of from And markets second letter It's MIEBO in stockholders. our ground already are and just refills these we for nearly in quarter. we are where ninth even refill in see CEQUA XX% those of territories, are XX the have over in of now seeing those Payers quarter Strong also And the the consistent for XX insurance haven't VEVYE to markets, into taking formulary in continue patients filled XX% the in VEVYE. positions, a of I number VEVYE has access improvement in open boots beating and the TYRVAYA markets. third talked XX% to though growth we

the made even leadership an implement a And is of with opportunity but have report IHEEZO In X, seeing by The happened also IHEEZO that XX%. in XXXX, of anesthesia and as decision market IHEEZO injection this because the and was impressive largely have July unit And choice retina are beginning what on more choice the somewhat not commercial enhances it quarter. TRIESENCE clinical also move will clinical of support one folks hear volume As up on and commercial the and primary continues in we at has too. retina every our points after to is this IHEEZO's made been as our are am pivot procedural retina for right third ideal quarter, at setting quarter CMS we had demand pivot is the second quarter, retina a reorder in in It's say the was quarter, to though, because not sales I rate I productivity that the has ophthalmic also on than our the sequential referred from only retina why compelling I It this for I we continue their that their over that make That an in reimbursement, sales to massive our demand resulted professionals to have a for in increases decision. pivot, increased perform to that market in the cases. territories concentration well, to only addition, processes specialist our demand to providers, the share, call just we intravitreal fewer eye same-day more strategic focus our to IHEEZO of pivot say as to add unit October. XXX% would market the third the letter community. fourth decision promised, more beyond. patients, benefits pleased the for care excellent predicted, not growing, is to we in Unit quarter, subdued XX% demand IHEEZO for of and the saw it us to numerous third but the the points. increase warranted. this to call for relaunch before looking already team's are the their clarity discovering leadership IHEEZO XXXX as exclusively discussed the I commercial with impact am care. allows said, improving of this right interest. letter because stockholders workflow. and I that stockholders, may There nearly this bilateral specialist which in in suffice of advice the have retina to convinced incredible us, use but in reasons which month And just XXXX, and as and community. increase foolish

TRIESENCE bringing absence, been yet retina to working is are everyone alternatives, sure hard backlog we back. on-label back community make TRIESENCE of to retina reason that is TRIESECE has a demand of the compelling no which the created for that Following of absence specialist knows and in for years our pivot. there The in market community another market that

that are I TRIESENCE today, We our convinced will rewarded, more remain than and ever. investment be this you tell richly in I of that convinced can

punch, We as powerful enhancing our market. IHEEZO and also a the effectively ability one-two retina commercial team's serve to combination see the of TRIESENCE

Segment continue stockholders business key you ImprimisRx to I letter commentary business on business. other perform, and review our my latest see parts our to our would Anterior to the encourage Finally, to and of

will pause I Operator? are answer operator happy for have to questions. questions. poll your We to our

Operator

with comes our [Operator Craig-Hallum. Knickerbocker Instructions] question And first Chase from

Chase Knickerbocker

of number I have pull you to on of about investors more need just product kind kind detail see that in that helpful should And inventory of has distributors? that market of how been at the year you think through think do the will end so the for thinking inventory a you of around drug you mean, kind QX before the guess, in to stocked long? much ultimately, that be TRIESENCE. how can Mark, be the first, performance of with QX then you little I kind bit off give of that what given

Mark Baum

very Well, positive that that, TRIESENCE. that about for are first, Thanks have for news reimbursing the TRIESENCE all think, they and MACs some, of is I regional Chase. have indicated that I

is that I into would I response, have has noted emboldened those can response the you to working the sell. revenue to system from So so from we we we're, much you units positive. as inventory some that is said, that at positive inventory actively the as team on team think, is very at the very is all? fourth least important news. very indications you in the that the working through tell the far. the by stockholder have, been system Medicare that inventory say of thus out, what add realize And to that hard. product-specific Andrew, far. thus letter, just we possible also quarter. I laid I revenue, and But terms do so as to think, push I as want in And J-code in the can And far the commercial that I

Andrew Boll

game perspective, we're our from in too, relaunch. think I the obviously the Chase, early with Yes,

beyond. to So initial guidance will kind has response came when the the And a little early sure making supplying, the we a out. that be, happy it's product of well October duration was it at team The the for big see next great. think in Obviously, for market. in chain exact on we important supply We're us to an set also I us been on focused pull-through precise were year back. think AEO physicians for more give really but for and is what point

And really so focus going for is that supply is we're forward. focus this the to make no got and us. on continuing also for stock, sure another shortages going so We've there's there market that critical initial to

Mark Baum

made add, being in And be batches do I and additional do to scheduled to we want have made XXXX.

think is is longer the supply to I referring Andrew just issue So chain. that term

Chase Knickerbocker

formulary would then And Got what quantify dollar Kind in can kind disruption Medicare if sorry there you there, more does of perspective, confirmation in more a question on just Mark, Is I sense the that step coverage caused year of kind I of VEVYE. I'm but just in a around have expect to think next press a guys do management? And Part of you that for there QX inventory color a edits the contracts were little release around that this, like D from QX? it. recent there? here you on had missed what side? on any you TRIESENCE. kind color And of and a initial about material than kind letter. talking what those late in in bit look kind What of shareholder couple then guess, those any in that, you the batches,

Mark Baum

Yes.

that question your kind think of -- on work went the then basis think also this on but I where D Part my what So Is around Medicare with and mute, VEVYE quantifying was we disruption a was qualitative contract. phone right? and I

Chase Knickerbocker

correct. That's

Mark Baum

Okay. Yes.

dollars look, news several VEVYE, have So add going that. us you allowed what revenue and and guidance million to we we're analysts. would good revenue meet mean, the to have external additional The had from ZERVIATE up I if it's probably with of would recapture is

recapturing fourth that are the revenue We quarter. in

deal the is but We So it of to it's going It's as was something we my I But any your job, of was, that to the a period. with, bump, to I characterized we Kind in better question to your problem as is several problem if stockholders, we have take letter million had outside that think, nevertheless. view it do a But that of unfortunate to good think, an bump. have the you're of so strong bounds answer that for the a is it responsibility. forecast. can demand do forecasting. it dollars it

D of story plans, brand one because we're that's largest really talking providers. D a about with the Part In great terms position of a the Med preferred

that it's not get term. But had to I still Andrew, I at the these expect think before you contracts getting We're we far, coverage should So in so to near anticipated. think, the arrangements of And all? those agreements. want in place better we're is easy sorts So there. add than on fairly to do additional well positions. response doing we're additional And working we

Andrew Boll

Nothing.

Chase Knickerbocker

just then in and And I'll guys. hop one back Great. queue confirmation,

improvement the for would be VEVYE, or competitive But at refill kind way, dry like kind confirm just, from that mentioned, that of of would questions. X kind first And months that eye of number that we there. all so just Xx kind right? the Sorry looking I'm X I guess, on rates is of of what think another of discontinuation just asked you of Can kind XX% rate that fill? you and that from kind

Mark Baum

double. on That's mean, next just don't way would can do to comment than anything. is the way, that. we conservatively more Andrew set of I if say, I by VEVYE much year And

is a it's that we're more And exciting more our as really to want which So on... very also as think slated year hopefully of exciting and we get I next product. contracting to Andrew, comment capture ASP do revenue more improves. you done,

Andrew Boll

Chase. Yes,

for refill rate on the patients eligible based refill. So is that

a X last September. refill, to their value, in think, we think see a drive modeling than value perspective, had in for And beyond continuing perspective. the and my the a better how term. shareholders then I next large up continues one I modeled. said it am CFO performing certainly and inventory for it's on so in as words, XXth because be long expected and continue from long really of something financial issue really in well, the excited That's me about us, product to sales for that and excited going product. something is I from be the ton marketing just the rate and well couple if really in favorite patients medium shortage it about. to year is that we want revenues from It's I if calls, mean, a seeing well further refills because should we and beyond of those other reasons expected of to definitely But we're the term they're, drive of And they're that side invest portion eligible what we and of It's scale what in clinical to weeks just are last I stack. And perspective refill. The refill from that I've performing for certainly product

Operator

next question Brooks comes with Street the O'Neil Capital. And Lake from

Brooks O'Neil

So I of quick have couple questions. a

just provide you'd color curious on if any summer seasonality. First, additional

any but maybe in that called that I a as think QX, color limits results normally helpful. be factor you out would

Mark Baum

business, device those producing dependent lot for began scheduling, markets. on of that XXXX, sells true And QX drug summer months our are not revenue a any only the company the Sure. surgical that's into company months. in weakest was but back always really or because our revenue

goes summertime, on So vacation. go go on patients vacation, doctors vacation, in staff on the

is reduced there so number surgical always of openings. And a

Brooks O'Neil

sense. Makes

I one and you the all IHEEZO just Let color TRIESENCE. gave VEVYE you is me one ask other that on appreciate and

that as launches that's take expected what hoped products of a we step of response so worries and the not call back you've is that you As we strikes what of and you'd kind there you marketplace, for, in far. the offered the beyond you color about think not those out thing each that's the anything

Mark Baum

Sure.

then way. your things just launch, times, your things don't That any with go are happens. think always go many I way. that and there

I been heading a mean product over next the is good And stand about it looks what and year. track is with so. right I have years that's X-figure think being towards or a happening. on X.X mean That's revenue I where we a I'm there IHEEZO, excited short of is that's last challenges really the number order. thing. now. we in promised, what like product

very that reimbursement launched. absolute have we side We didn't have We positive. on now. That's when the clarity

when anticipate patients once go I the in about only ways, primary like as about refill such behind some seen marketing. absolutely as we many because be go it. And this once finally, for things enthusiastic not. but you, over to right place things then product. compounding tertiary start gate, done many with continue note extraordinary said, can the your further I've it's invest like actually because something would important a But without have you chronic really the continue positioning I into and they And refill. like get That's IHEEZO. strategies looks It's years, tell TRIESENCE, many team, the would chronic has them to They expected, product, I how be didn't going it, is really and for that TRIESENCE. in And he having use products pharmaceutical product take the gone excited for on have sales an we now. out team should We've products life VEVYE of economic as a job the really management not think, that of VEVYE, we product the a everything our he's that some happen use say of things way. future, stockholders, have with perfectly again, said to should action, not to but cycle taking VEVYE. effect say it. to you and our I have really the or value is have secondary exciting have We years that it launch So that and using we the of strategy now Andrew the times action, to incredibly particular

in able more XXXX. I've As think, sell in to we calls, we on to than is TRIESENCE XXXX do be I said want these that expectation past, the our in

So our over stockholders have think we a strategy be should on that count that will should have to able years be affect cycle our value I'm fact last promised so. we we means over that the longer life realize to, stockholders saying. we And from products and X.X implemented or management what expected that the the that the that term, I had these to

Brooks O'Neil

sense. Makes total

one in slip just more. I as talking. of thought you me Let it were

plans capture now? the you surgery You've I thinking commented ophthalmic opportunity back the are about was. and in the Or pivot, think that areas? and go the Do IHEEZO try pivot, on cataract how it to to you have

Mark Baum

Yes.

of we're not all, First abandoning that market.

you We basis a quarterly of a to at when one revenue a I've during of what markets, on those But those regarding, in do you end revenue have the XXXX we'll run said rate look take continue customers customers without quite of by billion service $X IHEEZO to those few periods. how get and question.

that we or that intravitreal the injection in That things million for to market to need X% the quarterly what product. about penciled And means the in I letter of revenue does significant capture IHEEZO. we of stockholders. that And revenue about IHEEZO. need is $XX X% We've discussed mean? of that One from from

makes market. cataract not any sense, really market? what And XXXX given accomplish on by specific units No. we're laser surgery mean to so the to just sold have going to Does that that we're trying focus it into

ASC You have really But clarity even it's that we reimbursed that even focus. because we reimbursement, environment. on to that's where in-office can expect if such market in we'll date, sell probably not that the need into by

annual And and think, setting. We procedures in clinically, a than we value, and not a and are we ideal our the take have gaining for producing office is of J-code traction product there, an clarity just lot reimbursement there stockholders. place but I of permanent more also, have that only that that XX have is million

Operator

comes question next from Cohen the & Company. And Ladenburg Thalmann Jeffrey with

Jeffrey Cohen

there organization TRESENCE. I of that size kind in guess for us wanted Could to least relative up? talk and that metrics talk OpEx IHEEZO I are you did on we're about IHEEZO about into you're going TRESENCE and VEVYE. and size and out if the over commercial forward some to the thinking both about maybe at how ramping driving jump folks you those of selling give

Mark Baum

team the Jeff. that, To that TRIESENCE. is also that IHEEZO clear, be for is the is Thanks team selling Sure. selling same

bag. So they now in have X products their

outside is both accounts also with think, our reach segments large I potent products, of our we efforts working team we're GPO where sales the true what strategic even even strategic that's can accounts. to obviously. make new efficiently Our selling of very are market, on, And and particularly, relationships more organization

fourth small a bringing And as I also IHEEZO which have mighty TRIESENCE. experienced, that beyond. new question? are balance that well, very to quarter, mentioned but XXXX us and moving letter sales team, stockholders, on extraordinarily also said, the to or coupled is the I relationships talked set comment not we're these only with to Andrew, we for going and in which of you up about want for on, the really So organization the do but

Andrew Boll

place the the approach, take where kind for we operating the to moderated know growth operating a the on part. still is so mode. infrastructure, most is trying while you in we're sure The expense profitable of make that the Jeff, really part approach It's there. side, business SG&A of G&A in Yes, we're

revenue sales further on activities market growth. market investment as do to to us further continue see drive revenues drive should improves and tied type in to in access side. to operating primarily marketing And and is to access you commercial the going continue as further ramp expenses that the any VEVYE be invest and we'll So

increase that well. the that important is be correlating should as part about expenses revenue to those really tied all So

So expand the in and grow of as overall continue the will XXXX profitability we to years. we OpEx, company out

Jeffrey Cohen

one Okay. I more, Got may. if helpful. then That's And it.

We about is please? Any a thoughts on at how it haven't going heard in or commentary while. everything ImprimisRx,

Mark Baum

think cash. sure. want you comment of about ImprimisRx? to for a well. business a That's doing add lot is do really producing Andrew, It's I

Andrew Boll

improvement. really revenue and to about seeing new a accounts launched to We things Yes. product new a a see And talked and the reception how uptake get how been can as we are Q X as pathway, products year. in those market real performing so mentioned. really this added the market. of the of that, has operating we're months see you we've really added come out products business well idea seeing even see past growth at hitting. disclosure of seeing traditionally continuing branded an that see But pleased we Definitely that Povacaine for new individual been positive. we've Jeffrey, in been market Summer especially has and the customer level. broke seeing business and where a to But are get ImprimisRx initial double-digit new continue business AEL, as Mark We our an need ImprimisRx kind called segments, with the in XXXX slow, and to it's and profitability there there despite

Operator

with comes Securities. next Mayank The B. question Riley from Mamtani

Mayank Mamtani

the appreciate XQ I That's trend update. helpful.

that gross X/X dry from on share on should investing to trends see also, Based have you're your peer some a market payer doing couple commercial you access what improve impressive. And relative on as be follow-ups. coverage eye than then quick more lower might comment And to net? Could seen we've volume from a math, to talk quickly to and Anything in our Just peers? I bit you're your goals a on look trending there we payer how VEVYE launch. activity efforts? DTC or you script of the you

Mark Baum

for Thanks the question. Sure.

DTC not. me the by answer on And Let start is commenting the effort. absolutely

product seeing, is are at that have appreciate DTC. about that the definitely of that see you we're just they a like said, when really that we want are we investments You disease. so will because in investing not patients much so seeing really That consumer effective dry particular, us awareness And rates DTC refill in and you eye increasing VEVYE awareness, the they as that condition. much in appreciate the awareness

there, the VEVYE there, is terrific. I So that but we're invest market not to which going that's I to is also access on add extraordinary team an we're going doing think want job. We sales working to organization. took a last basis, are on just gross massive very relative a look and a at a we a seeing for this and especially quarter, launch number, new small the benefit

are is can only prescription by those I that contracting. think, do. a because And what to and underway not stockholders a things. going now. significant we're ability I unit next we of So that's to The more lot are efficient There going per right the our very, care a of what interest lot net improve what revenue do couple we efforts being obviously, seen I the capture that's little a We're a that is with really about more that on a our meaningfully And get team is lot how that of do few you and clinically. on through, very basis, rate, the building think of rate, is basis. capturing we of what revenue. refill tell the And But can question payer have There side per over the on quarters, product amount because to the what ASP. we is is, revenue. refill of a tweaking but of

well to do That's you count going us improve Andrew, do can to on only I improve revenue, but to it's going that. not to that? the our think add for stockholders product. margins want to as

Andrew Boll

and I really to especially we perspective, think help and volume That to on this gain was on access, should more obviously, as said, as doctors From mean, been also patients continue on importantly, access improve. getting getting as net that I saying, Yes. it side, the volume gross then a beyond Mark volume. product. and therapy Mayank, should improves, have the year to launch drive and net to next year, getting focused introduced gross we And

get things start online. benefit coming So a should as we double those

Mayank Mamtani

then see TRIESENCE? relaunch where And discussions, IHEEZO, XX%. at net know there example, in net procedures on to AAO, the for patients it's expect is on that based for question, similar trending helpful. is And Very any IHEEZO there price use both TRIESENCE and overlap early, I TRIESENCE you know and for early is of gross you your at the a but I

TRIESENCE in expectation be same range? So that is also would the

Mark Baum

Yes.

first work. going least comment first still on pricing products is to a at tell we're So net question, on respect GPO you what thing, with But actually not TRIESENCE basis, sort can the the moving really together. both like of We're to right now. we're that completing part I of for

can so positives big And and specialist a And of retina you about create real having both one TRIESENCE. IHEEZO formulary. the sort that's of

which I products in may that think company the one pharma into we're actually even the companies has that market, the ophthalmic is X only only sell exciting. of market. to We be

Mayank Mamtani

Phase value should expected X on lastly, shareholder creation SPA FDA the reached with that? And noticed in is obviously your MELT-XXX bit about shortly. How the readout color we I think a from Okay. recently more and letter, including

Mark Baum

week, we're the Thank Phase I believe with time data. this of that MELT next to know where stand Mayank. terms you, by X in we going

some will Phase sort next there'll the So that external that of next time early be data by week. communication week and my expectations X this are read regarding out that

we for are value in that In obviously. of interested very terms creation MELT, product,

of revenue. of sell sell we compounded if $XXX nearly product, result communications, prior formulation. an version would of that in in million said the a MELT And able it we I've annual were to version As FDA-approved

know customers formulation and readout. we prefer would and an to. as the unless of said, sort of launch that degree you of confidence really a premature to who I have. we it So product as creates high attracted of a the something much possibly all commercial I use compounded could have a they But as have use version FDA-approved no-brainer is those are positive that of so we're That's

the It week And, the domestically, be will reach outside It's strong, the especially it's use ophthalmology, that formulation. able if we number comes But the is things data ophthalmology. to big time we has next with only we'll product. forward If SPA we'll greater of a like. to do And the what we're was in so company need positioned that be focused, to from to fast internationally. now, of know more And well with a cases where about going uses data FDA, not certainly to but we through, is patented looks patented it's know. week. were the great this hopefully see given data that patented

Operator

And That's turn time have I we that all back like do would questions. for Mark the for it to remarks. closing now to

Mark Baum

joining us continued want for reiterate in trust grateful I vision. vision. you, as long-term and vision. on just Sure. a and today. support your thanks Thank the a company short-term to for operator, execute this are we how It's It's we not

stakeholders. along I that very is and time term. is way. and we've to a as value journey, move a It's I towards focus our think operational Harrow are a end really progress built work value investor, the family. delivering to we of part an The growth, the exciting be of we've dedication, a a of going certainly the we and hard for achievements have our testament whether this of partner the year, record And be this made to be and importantly, a record our all year, partnerships to team's that sustainable you're pretty year customer, excellence of good believe the member a a or the which stockholders though, longer over creating going

reach will you So is Her or need e-mail conclude Jamie Jwb@harrowoinc.com. our address hesitate to any information, questions out have to This other call. don't Webb. you additional if

Operator

participating. you Thank This conclude much does for so the call.

now may disconnect. You

Harrow Health (HROW) 14 Nov 242024 Q3 Earnings call transcript