Harrow (NASDAQ:HROW) reported second-quarter revenue of $70.7 million, up 11% from a year earlier and about 60% sequentially, as the ophthalmic pharmaceutical company said it entered the second half of 2026 with stronger demand across several products, improved pricing and expanded commercial infrastructure.
First-half revenue totaled about $115 million, which Chief Executive Officer Mark L. Baum said was below the company’s expectations entering the year, primarily because of the net revenue impact from VEVYE. Harrow nevertheless reiterated its full-year guidance for revenue of $350 million to $365 million and adjusted EBITDA of $80 million to $100 million.
Second-Quarter Results and Margin Outlook
VEVYE generated quarterly revenue of $29.4 million, up nearly 58% year over year. Baum said prescriptions increased 21% sequentially, while the prescriber base expanded 15%. The product ended June with a 14.6% share of the branded dry eye market, according to IQVIA data cited by Chief Commercial Officer Patrick Sullivan.
Harrow changed VEVYE business rules at the end of April, reducing co-pay card utilization and improving the product’s average selling price, according to management. Boll said the company expects additional pricing improvement in the second half as the updated rules apply for a full period, patients meet annual deductibles and expanded commercial coverage takes effect.
IHEEZO generated $15.6 million in second-quarter revenue, largely from wholesaler stocking orders for a new five-pack presentation. Revenue lagged underlying demand because distributors were selling through previously acquired inventory, Boll said. Unit demand reached a quarterly record of 65,477 units, up 44% sequentially and 34% year over year.
Management said IHEEZO channel inventory has normalized, and approximately 25% higher net pricing became effective July 1. Baum said the product’s gross margin exceeds 90% and should make a significant contribution to second-half revenue growth and profitability.
The specialty portfolio and TRIESENCE contributed approximately $11 million of revenue, while the compounded portfolio contributed $14.6 million. TRIESENCE demand rose 162% year over year to 14,529 units, with 54% of demand coming from ocular surgery, Sullivan said.
GAAP gross margin was 71% in the quarter. Harrow expects gross margins to return toward the high-70% range in the second half, supported by IHEEZO’s normalizing revenue cycle, rising revenue, VEVYE growth and product mix.
SG&A expense was $53.3 million, reflecting commercial investments made during the quarter. Excluding employees expected to join through the pending TYRVAYA transaction, Boll said base SG&A is expected to remain approximately flat for the rest of 2026. Adjusted EBITDA was negative $1.2 million, and Harrow ended the quarter with $83.9 million in cash and cash equivalents.
Commercial Expansion and Product Drivers
Harrow formally launched BYOOVIZ on July 1, following modest stocking activity during the second quarter. Management said early physician engagement has been encouraging and that the biosimilar product fits within the company’s retinal commercial organization.
The company also cited the relaunch of VERKAZIA, a permanent J-code for IOPIDINE effective July 1, and an expanded Access Plus commercial organization as incremental growth drivers. Harrow tripled its surgical commercial organization during the second quarter to support TRIESENCE, though management said the new representatives remain early in their productivity ramp.
For IHEEZO, Baum said Harrow is concentrating on in-office retina and other procedures following the loss of pass-through reimbursement in cataract surgery on April 1. He said the company estimates it has less than 2% share of its overall addressable IHEEZO market and sees more than 10 million annual procedures across intravitreal injections and other in-office uses as opportunities.
Harrow also secured expanded commercial coverage for VEVYE through a top-three pharmacy benefit manager, effective Aug. 1. Baum said the agreement opens access to “many millions” of commercial lives that had previously been blocked, though he did not disclose formulary positioning. Management said the company expects the coverage agreement to improve unit revenue for VEVYE.
Pending TYRVAYA Acquisition
Subject to closing, Harrow plans to acquire global rights to TYRVAYA, a dry eye treatment approved in the U.S. and China and under regulatory review in five additional countries. The company expects to use $30 million of cash on hand for the upfront consideration.
Management expects only a modest TYRVAYA revenue contribution in 2026 due to the anticipated timing of closing and integration. For 2027, Boll said Harrow expects TYRVAYA to generate more than $30 million in revenue and be financially accretive. The company anticipates that adding commercial personnel from Viatris Eye Care will increase annualized SG&A by about $20 million once fully integrated.
Sullivan said TYRVAYA would complement VEVYE by offering a drop-free treatment option, including for contact lens wearers. Harrow expects to integrate experienced dry eye sales representatives from Viatris during the fourth quarter, with the added team supporting both products.
Pipeline Updates
Chief Scientific Officer Amir Shojaei said Harrow has secured a pre-new drug application meeting with the U.S. Food and Drug Administration for G-MELT, or MELT-300, scheduled for early in the fourth quarter. The company remains on track to submit a new drug application during the first half of 2027.
G-MELT is being developed as an IV-free, opioid-free procedural sedation option. Assuming a successful regulatory review, Harrow continues to target potential FDA approval in the first half of 2028 and a commercial launch later that year.
Harrow is also advancing YOCHIL, or MELT-210, an orally disintegrating midazolam tablet under development for pediatric patients undergoing diagnostic and therapeutic endoscopic procedures. Shojaei said the company completed an end-of-phase II meeting with the FDA earlier this year and continues to target an NDA submission in 2027.
In addition, Harrow said its QUELL study of IHEEZO is enrolling and is expected to complete enrollment later in 2026, with results anticipated by year-end. The double-masked controlled trial is evaluating anesthetic effect and patient outcomes compared with subconjunctival lidocaine in intravitreal injection procedures.
About Harrow (NASDAQ:HROW)
Harrow Health, Inc (NASDAQ: HROW) is a U.S.-based commercial-stage biopharmaceutical company specializing in ophthalmic therapeutics and diagnostics. The company focuses on the development, manufacturing and distribution of proprietary, generic and branded eye care products designed to treat a range of ocular conditions, including glaucoma, ocular hypertension, dry eye disease and other anterior segment disorders.
Through its wholly owned affiliate ImprimisRx, Harrow Health offers a direct-to-physician model for customized formulations as well as low-cost generic alternatives.
