HROW earnings call summary

Prepared Highlights

• Q4 2025 consolidated revenue was $89.1M, up 33% YoY; full-year 2025 revenue was $272M, up 36% YoY (CFO, prepared)
• Adjusted EBITDA was $24.2M in Q4 and $61.9M for the full year, up 54% YoY (CFO, prepared)
• Operating cash flow was just under $44M in 2025; year-end cash and equivalents were $72.9M (CFO, prepared)
• IHEEZO: Q4 revenue $35.9M, full-year $81.3M (+65% YoY); unit demand grew 56% YoY; ordering accounts up 49% YoY; retina specialists represented ~70% of Q4 unit volume (CFO, Pat – prepared)
• BYOOVIZ: Q4 revenue $25.9M (+14% sequentially), full-year $88.7M (+216% YoY) (CFO, prepared)
• TRIESENCE: Q4 revenue $5.1M (+36% vs Q3), full-year $9.9M (+193% YoY); nearly half of Q4 ordering accounts were new (CFO, Pat – prepared)
• Rare specialty & compounded portfolio: Q4 revenue $22.2M, full-year $92.3M; temporary compounding inventory constraint expected to resolve near end of Q1 2026 (CFO, prepared)
• VEVYE: Covered patients averaged ~9 refills/year in 2025; prescribers writing VEVYE increased 115% in 2025; doubling the sales force by Memorial Day (CEO, Pat – prepared)
• 2026 SG&A expected to increase to ~$185M–$205M, adding ~100 new sales roles in H1; R&D expected to be ~$30M–$35M (CFO, prepared)
• G-MELT (formerly MELT-300): PK work initiated early 2025; NDA submission on track for early 2027; CEO calls it potential "largest product" (CEO, Amir – prepared)
• IHEEZO retina studies: Investigator-initiated RCT data expected at ASRS July 2026; Harrow-sponsored Phase 4 RCT (~240 patients) data expected by end of 2026 (Amir, prepared)
• Portfolio update: Two new launches in 2026 — BYQLOVI (Q2) and BYOOVIZ (mid-2026); three products in rare specialty portfolio being revived (coding decision for one expected in April; study readout for another later this year) (CEO, CFO, prepared)
• Mgmt quotes:
  • "We are entering the final phase of our current 5-year plan, and we are doing so with momentum." (CEO)
  • "For the first time, all of our core growth drivers accelerated simultaneously." (CEO)
  • "VEVYE finally becomes a 9-figure revenue product this year." (CEO)
  • "We expect full year 2026 revenue between $350 million and $365 million." (CFO)
  • "G-MELT has the potential to simplify that model... I believe has the potential to become our largest product." (Amir)

Prepared Metrics

Q&A Batch (1-5 of 5)

Q1 — Chase Richard Knickerbocker

• Topic: VEVYE commercial mix, ASP guidance, and TRIESENCE cataract trial opportunity
• Key points:
  • VEVYE net pricing (ASP) showed a “slight uptick” and is now seen as more sustainable and buoyant; the company had forecasted this improvement a quarter or two late.
  • New prescription volumes in Q1 (typically a weaker period) are “meaningfully better” than expected; the company is more than doubling the VEVYE sales force (from under 50 to ~100).
  • For TRIESENCE: the company believes it will not be limited by a temporary pass-through period due to its unique label covering both office and hospital settings.
• Mgmt stance: Bullish, citing positive momentum from new CVS formulary positioning and surprise Q1 prescription growth.

Q2 — Timur Ivannikov

• Topic: IHEEZO price timing and TRIESENCE cataract trial design
• Key points:
  • IHEEZO pricing is expected to improve by Q3 2026 relative to 2025 and the first part of 2026.
  • TRIESENCE cataract trial: the control arm will not receive TRIESENCE; rescue criteria (allowing drops) are built into the protocol.
• Mgmt stance: Neutral on IHEEZO pricing timing; factual on trial design without directional commentary.

Q3 — Mayank Mamtani

• Topic: VEVYE market share goals and IHEEZO revenue contribution
• Key points:
  • VEVYE goals (in order): become the #1 cyclosporine in the U.S. (~20%+ market share needed), then #1 anti-inflammatory, eventually #1 most prescribed dry eye product.
  • VEVYE new prescriptions grew 115% year-over-year; sales force expansion to ~100 is more than halfway complete.
  • IHEEZO entered retina sales only in Aug 2024; no specific 2026 revenue guidance is given, but VEVYE is “clearly on the road to nine figures.”
• Mgmt stance: Bullish on VEVYE growth trajectory and share gain potential; cautious on quantifying IHEEZO revenue.

Q4 — Lachlan Hanbury-Brown

• Topic: IHEEZO demand offset from ASC pass-through loss and VEVYE coverage conversion
• Key points:
  • IHEEZO demand continues to increase; the loss of ASC units (from temporary pass-through expiration) is a “small number of units” vs. a 2.5-million-unit TAM expansion from in-office procedures.
  • Offsetting the ASC loss will likely happen “throughout the year,” not in Q1 or Q2.
  • For VEVYE: over $30 million in new covered lives; the company is contacting previously denied or cash-pay patients to convert them to covered prescriptions.
• Mgmt stance: Bullish on IHEEZO offset potential; optimistic on VEVYE conversion of existing patient base.

Q5 — Thomas Eugene Shrader

• Topic: VEVYE sales force scale relative to competitors and G-MELT franchise strategy
• Key points:
  • The VEVYE sales force is being expanded to ~100 (from previously under 50); the company aims

Q&A Batch (6-9 of 9)

Q6 — Thomas Eugene Shrader

• Topic: TRIESENCE适应症范围及市场定位
• Key points:
  • TRIESENCE纯粹用于眼部，不会拓展至眼外领域。
  • 公司自2014年成立起就销售曲安奈德注射剂，对该原料药非常熟悉。
  • 公司希望为白内障手术患者创建无静脉注射、无阿片类药物、甚至最终无需眼药水的方案。
• Mgmt stance: 自信（公司对该产品线和白内障手术市场经验丰富，目标明确）

Q7 — Thomas Slayton

• Topic: VEVYE销售团队扩张及MELT/MKO的deal making计划
• Key points:
  • VEVYE销售团队扩张旨在提高对高价值客户办公室的访问频率；数据显示更多访问带来更多处方。
  • 视光师市场非常重要，其干眼处方量可能已超过眼科医生。
  • MELT/MKO目前聚焦眼科：仅白内障手术每年至少有500万使用案例；加上青光眼等手术可再增加数百万例。这是一个数十亿美元的市场。
  • 竞争是静脉注射和阿片类药物；杜克大学和梅奥诊所的研究显示，患者目前在白内障手术中使用芬太尼镇静。公司致力于改变这一现状。
• Mgmt stance: 积极（VEVYE增长前景广阔，MELT/MKO市场机会巨大，需集中精力在美国眼科市场提交NDA）

Q8 — Jeffrey Scott Cohen

• Topic: 关税对利润率的影响及BYOOVIZ发布准备
• Key points:
  • 关税: 预计2026年关税对利润率无影响；当前状况比去年“解放日”最坏情景分析结果更优。
  • BYOOVIZ: 将于2026年中发布；利用现有视网膜销售团队，仅产生少量增量成本和与中心相关的可变成本。
  • Samsung与创新药就EYLEA达成和解，使得公司可提前至2027年1月进入该市场。
  • 新收入将对收益高度增厚。
• Mgmt stance: 乐观（关税影响无虞，BYOOVIZ发布准备就绪且成本可控，Samsung合作带来额外利好）

Q9 — Yi Chen

• Topic: 生物类似药的市场策略及差异化
• Key points:
  • 公司对BYOOVIZ的目标市场份额仅为几个百分点（约5%），并非30%；市场是眼科领域最大收入来源。
  • 竞争优势在于公司向医生销售产品组合（包括麻醉剂），而不仅仅是生物类似药；可提供全面的支持方案。
  • 没有专用的独立销售团队，而是利用现有团队深厚的行业关系和经验。
• Mgmt stance: 自信（目标市场份额低且明确，差异化策略清晰，风险小，盈利门槛低）