In a Busy Summer, Harrow Health Expands Beyond Compounding, Adds DTC Business

Harrow Health is a pharmaceutical maker with a portfolio of healthcare businesses focused on ophthalmology medications used in surgery as well as for dry eye, glaucoma, allergies, infections, and inflammatory conditions. Harrow owns ImprimisRx, which it says is the nation’s leading ophthalmology outsourcing and pharmaceutical compounding business (and for which Harrow was previously named), and Visionology, a direct-to-consumer eye care subsidiary focused on chronic eye disease.

Harrow also holds large equity positions in Eton Pharmaceuticals, Surface Ophthalmics, and Melt Pharmaceuticals, all of which started as Harrow subsidiaries. The company also owns royalty rights for four clinical-stage drug candidates that Surface and Melt are developing, and has signed a pharmacy partnership to sell Avenova lid and lash solution (pure hypochlorous acid).

Harrow in the Retina Space
In the retina space, Harrow has purchased patent-protected AMP-100, a non-opioid ocular surface anesthetic to be used during interventional procedures, from Switzerland-based Sintetica. Harrow anticipates filing a New Drug Application (NDA) later this year and, if approved, launching the agent commercially in late 2022.

In addition, Harrow acquired US and Canadian commercial rights for drug candidate MAQ-100, a preservative-free triamcinolone acetonide ophthalmic injection, from Tokyo-based Wakamoto Pharmaceutical. Sold as MaQAid in Japan, the agent was first indicated for vitrectomy visualization and has since expanded to include diabetic macular edema, macular edema associated with retinal vein occlusion, and noninfectious uveitis. Leveraging the Japanese clinical data, Harrow initially plans to support a MAQ-100 clinical program and an NDA starting with its original indication.

Democratizing Pharma
Founder, CEO, and board chairman Mark L. Baum says Harrow’s mission is to make medications more accessible and affordable, overcoming the barriers in the traditional pharmaceutical chain—namely formularies, intermediaries, and cost opacity. Harrow’s model aims to do this by producing and dispensing products nationwide, directly from Harrow-owned facilities to doctors, hospitals, surgery centers, and patients.

“After acquiring our first pharmacy in Randolph, N.J., in 2014, we began commercial operations,” Baum said. “The end of 2020 concluded the first major phase of development for Harrow Health.

“We started with zero products, zero customers, limited cash, and boundless drive to build a great healthcare company. Today, thanks to the extraordinary efforts of our team, the patience of many stockholders, and the patronage of about 10,000 prescribers and institutions in virtually every major populated county in the United States, we make about two dozen innovative products and have been a democratizing force in the pharmaceutical industry, ensuring patients have access to affordable ophthalmic pharmaceutical products.”

Busy Summer
After closing on a $20 million underwritten public offering in June, Harrow had a busy summer. In addition to the previously mentioned deals, it received two patents for an injectable dilating formulation for cataract surgery, and made a deal with NovaBay Pharmaceuticals to promote Avenova. Since falling below $7 in mid-July, its stock has risen somewhat steadily, trading around $9 earlier this week.

The company is “well-positioned to continue to grow, become more profitable, and build a very large and valuable eyecare-focused healthcare company through the execution of our focused strategic initiatives to expand beyond organically growing our pharmaceutical compounding business,” Baum noted.

Harrow looks to add Food and Drug Administration–approved drugs and late-stage drug candidates to its portfolio. For example, the company forged an agreement with EyePoint Pharmaceuticals to market Dexycu. It plans to acquire rights to additional high-value products and technologies and deploy new eyecare services.

Going Direct-to-Consumer
Harrow launched the first direct-to-consumer eye-care platform subsidiary Visionology regionally this year.
“Before I ever heard the word ‘COVID,’ I had a strong conviction that with the help of new telemedicine technology, other software tools, and mobile diagnostics, the provision of eye¬–care goods and services would move closer and closer to the patient,” Baum said. “With the help of a network of local eyecare professionals, we will deliver a simple and seamless user experience to help patients manage their chronic eye diseases. Our goal is to drive value, transparency, and access to eyecare without the waiting room.”

Harrow noted in a corporate overview its revenues are expected to exceed $100 million within the next few years, and it will “accelerate through the acquisition of high-value products.”

“Our pipeline of potential transformative transactions is strong, and I am confident that our efforts will lead to new opportunities and the addition of new ophthalmic products that will continue to contribute to our success,” Baum said. “While we have achieved much, we are not letting down our guard. We will always be scrappy, non-bureaucratic, diligent, undeterred from our mission, and buoyed by the benefits our more efficient business model brings to the market.”