HROW earnings call summary

Prepared Highlights

• Q1 2026 consolidated revenue $44.2M, adjusted EBITDA -$12.7M (CFO).
• VEVYE revenue $20.9M, impacted by ~$8M gross-to-net modeling dynamic from high-deductible patient mix surge in Q1; fix implemented mid-April with negligible impact on demand (CEO, CFO).
• IHEEZO revenue $1.9M, unit demand +18% YoY, new ordering accounts +21% QoQ; retina represents >80% volume (CFO, CCO).
• TRIESENCE & specialty portfolio revenue $7.8M; unit volume +136% YoY, 44% of volume from ocular surgery accounts, 6th consecutive quarter of demand growth (CFO, CCO).
• Access+ revenue $13.5M; inventory constraints resolved, safety stock increasing (CFO, CCO).
• New sales force hires >90 professionals completed; VEVYE team doubled from <50 reps (CEO, CCO).
• IOPIDINE 1% permanent J-code effective July 1, enabling ASP+6% reimbursement for >1.5M annual laser procedures (CCO).
• BYOOVIZ initial stocking orders expected in Q2, commercial launch July 1 (CFO).
• Official guidance: FY2026 revenue reaffirmed $350M–$365M (CEO, CFO); Q2 2026 revenue expected $71M–$81M (CFO); VEVYE on track to exceed $100M for FY2026 (CFO).
• 2027 target: achieve $250M in quarterly revenue by end of 2027 (CEO).

Mgmt Quotes

• “Underlying demand is tracking in line with or above our expectations.” (CEO)
• “Net pricing is much better aligned with our internal expectations and should be notably higher than in the first quarter.” (CFO)
• “VEVYE is taking share in a growing market, and that is the absolute cleanest signal you can get that the brand is winning on its own merit.” (CCO)
• “Our data demonstrates that demand for our key growth drivers is accelerating.” (CEO)
• “Second half of the year to be even stronger than initially anticipated.” (CFO)

Prepared Metrics

Q&A Batch (1-5 of 5)

Q1 — Timur Ivannikov

• Topic: VEVYE gross-to-net adjustment breakdown and seasonality
• Key points:
  • Q1 is typically challenging for Part D products due to deductible reset; branded dry-eye market was down 18% in Q1.
  • VEVYE NRx grew 25% sequentially and TRx grew 11% sequentially despite market decline.
  • CVS patients had ~40% higher out-of-pocket buydown than any other covered patient, causing an $8M revenue reduction.
  • Business rules were adjusted in mid-April to reduce out-of-pocket buydowns; new rules show minimal impact on demand in first few weeks.
• Mgmt stance: Neutral (acknowledges negative Q1 revenue impact but confirms volume retained and corrective actions in place with stable demand).

Q2 — Chase Knickerbocker

• Topic: VEVYE ASP impact from business rule changes
• Key points:
  • If changes had been in place for full Q1, the ASP impact would be roughly a 30% increase (said by mgmt to be a "reasonable assumption").
  • Over the last ~15 days, VEVYE NRx volumes show "higher highs and higher lows," with record days and weeks; trend lines breaking upward.
  • New sales reps (doubled to 100) are beginning to bear fruit, driving steady volume growth.
• Mgmt stance: Bullish (positive volume momentum post-rule changes; new reps driving demand inflection).

Q3 — Lachlan Hanbury-Brown

• Topic: IHEEZO Q2 dynamics, channel inventory, and new packaging
• Key points:
  • ASC setting volume fell from 30% of unit volume in 2025 to 18% in Q1; mgmt expects ASC business to go to zero, but in-office sales will replace those units by year-end.
  • 5-pack presentation expected to improve ASP by >20%, commercially launching July 2026.
  • Q2 IHEEZO revenue expected to be below Q2 2025; normalized revenue begins in Q3/Q4.
  • IOPIDINE 1% with new J-code will be an incremental contributor, more meaningful in 2027; 1.5M annual procedures in laser market, but TAM broader.
• Mgmt stance: Cautiously optimistic (near-term revenue muted but long-term demand and pricing improve, new product adds increment).

Q4 — Thomas Shrader

• Topic: Timing of VEVYE business rule discovery and IHEEZO ASC persistence
• Key points:
  • January data (in mid-Feb) was in line with expectations; February data was higher but mgmt waited for March data (mid-late April) to confirm trend.
  • Business rules were changed over the weekend after final data set was available; mgmt acted on trends, not single data points.
  • IHEEZO ASC business will go to zero; in-office coverage is >95% with a prior-auth rate <5%.
• Mgmt stance: Defensive but confident (explains data delay and rapid corrective action; durable in-office IHEEZO coverage validated).

Q5 — Mayank Mamtani

• Topic: Sales force impact on VEVYE demand and second-half revenue drivers
• Key points:
  • 100 reps were hired with ophthalmic experience, deployed for a few weeks; early Q2 indicators show positive signs.
  • Management incentivizes commercial covered scripts over cash-pay to improve mix.
  • Improved insurance coverage expected over next 12–18 months (no specific payers mentioned).
  • Second-half revenue growth: BYOOVIZ launch

Q&A Batch (6-7 of 7)

Q6 — Thomas Flaten

• Topic: 销售团队扩张细节与G-MELT NDA提交时间表
• Key points:
  • 干眼症团队（VEVYE）新增约50名销售代表，规模翻倍
  • TRIESENCE销售团队规模扩大至原来的3倍
  • 剩余新员工分配给VERKAZIA和NATACYN组成的专科团队、视网膜团队及Access+团队，总计约100人
  • G-MELT NDA提交目标为2027年第一季度，但若能在2026年底提交，将是“非常非常年底”；所有高风险工作已完成，剩余数据收集风险极低
• Mgmt stance: 看多（对G-MELT潜力评价“绝对非凡”，预期将成为公司收入最高的产品，且后续工作风险极低）

Q7 — Yi Chen

• Topic: BYQLOVI上市状态及2026年收入指引涵盖范围
• Key points:
  • BYQLOVI样品已分发（数千份），但“贸易上市”（实际销售）将于2026年第三季度开始
  • 当前2026年全年收入指引已包含BYQLOVI（以及BYOOVIZ）
  • 管理层拒绝按单品给出2026年及之后的收入贡献预测，仅称内部有模型但未准备好对外披露
• Mgmt stance: 中性偏积极（产品已进入样品阶段，贸易上市在即，但暂不提供具体数字指引，对未来潜力保持信心）