Detailed Narrative
Second Half Growth Drivers
Harrow is banking on several key initiatives to drive a significant second-half ramp. These include the full benefit of V-VI's revised business rules and expanded sales force, IHESO's normalized revenue cycle with improved net pricing and record demand, and continued growth from Triessence. The recent launch of BioViz and the relaunch of Vercasia, along with IOPIDI's permanent J-code, are also expected to contribute. Management emphasized that the outlook is not dependent on a single product or event, but rather multiple commercial growth drivers.
V-VI Commercial Strategy and Performance
The company implemented business rule changes at the end of April for V-VI, which led to meaningfully lower copay card utilization and higher average selling price (ASP), while prescriptions still increased 21% sequentially and the prescriber base grew 15%. Broader commercial coverage effective August 1st through a top-three pharmacy benefit manager and an expanded sampling program are expected to further accelerate prescription growth and expand V-VI's share of the branded dry eye market during the second half. The sales organization has doubled in size over the past year, contributing to increased new and total prescriptions.
IHESO Market Expansion and Economics
Despite the loss of pass-through reimbursement in cataract surgery, IHESO achieved record unit demand (65,477 units), primarily driven by the in-office market, including retina practices and other in-office procedures. The company sees significant headroom for growth, with less than 2% market share in the overall addressable market, and expects continued acceleration with a 25% net pricing improvement effective July 1st and gross margins exceeding 90%. The focus is on increasing utilization within existing accounts and expanding into the broader in-office procedure market, which adds over 2.5 million annual procedures.
Turviya Acquisition and Strategic Fit
Harrow is acquiring global rights to Turviya, a dry eye nasal spray, which is approved in the US and China and under review in five other countries. The product offers a differentiated tolerability profile (zero contraindications, zero ocular adverse events, sneezing as most common reaction) and is seen as clinically complementary to V-VI, particularly for contact lens wearers or patients struggling with eye drops. The deal is expected to be financially accretive in 2027 and contribute modestly to revenue in 2026, subject to closing, by expanding the dry eye franchise's reach and creating revenue synergies.
Pipeline Progress in Procedural Sedation
The R&D pipeline is advancing with G-MELD (MELD 300), a procedural sedation candidate, on track for a pre-NDA meeting with the FDA in early Q4 FY26 and an NDA submission in H1 2027, targeting FDA approval in H1 2028 and launch in H2 2028. YoChill (MELD210), a pediatric version of G-MELD, is also progressing with an NDA submission targeted for 2027, leveraging the same orally disintegrating tablet platform. These programs represent a broader procedural sedation platform addressing both adult and pediatric patients.
Commercial Team and Capital Allocation
Management emphasized the significant upgrade in talent, particularly within the commercial group, which is seen as crucial for executing the second-half growth strategy. The integration of experienced sales representatives from Beatrice Eye Care Division following the Turviya acquisition will further expand the dry eye sales force and territories, supporting both V-VI and Turviya. The company maintains a foundation of ensuring affordable access to all its medications, implementing sampling programs to replace more expensive $0 first-fill initiatives.