In This Article:
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Revenue: Record revenue of $49.3 million, a 44% increase over the prior year quarter.
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Gross Margins: Described as solid, with cash generated from operations.
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BVI Prescription Volume: Increased 55% in the third quarter compared with the second quarter.
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BVI Refill Rate: Over 90% refill rates for BVI prescriptions.
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Covered Territories for BVI: Increased from 51 in the second quarter to 61 in the third quarter.
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Ihio Unit Demand: 15% sequential increase in unit demand over the second quarter.
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Ihio Reorder Rate: Impressive at 82%.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Harrow Inc (NASDAQ:HROW) reported record revenue of $49.3 million for the third quarter, marking a 44% increase over the prior year.
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The company's Crown Jewel Dry Eye Asset, VVI, launched in January, exceeded expectations with a 55% increase in prescription volume from the second to the third quarter.
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Harrow Inc (NASDAQ:HROW) successfully managed to recover from a temporary inventory shortage of VVI by adjusting inventory levels, ensuring no future shortages.
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The company has seen a significant improvement in insurance formulary access for VVI, enhancing its market potential.
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Harrow Inc (NASDAQ:HROW) implemented a strategic 'retina pivot' for its product Ihio, which is already showing positive results in the fourth quarter.
Negative Points
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Harrow Inc (NASDAQ:HROW) faced a temporary inventory shortage of VVI in mid-September, which capped its revenue potential for the third quarter.
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The strategic 'retina pivot' for Ihio resulted in subdued demand during the third quarter as the sales team focused on new sales processes.
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Summer seasonality typically limits results in the third quarter due to reduced surgical scheduling.
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The company acknowledged challenges with Ihio's launch, including initial lack of reimbursement clarity.
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Harrow Inc (NASDAQ:HROW) is still completing work on net pricing for its relaunched product Tri Essence, indicating potential uncertainty in revenue projections.
Q & A Highlights
Q: How should investors think about the performance of Tri Essence in Q4, considering its relaunch and inventory levels? A: Mark Baum, CEO, stated that all regional MACs are reimbursing for Tri Essence, which is positive news. The commercial team is actively working to push inventory through the system to realize as much revenue as possible in Q4. CFO Andrew Boll added that while it's early to give precise guidance, the initial response has been great, and they are focused on ensuring a stable supply chain for the future.