Harrow Inc. (NASDAQ), a leading North American eyecare pharmaceutical company, has announced that its dry eye disease treatment, VEVYE, will be included in the 2025 Medicare Part D Prescription Drug Program starting January 1, 2025. This development ensures coverage by major plan sponsors such as Express Scripts, Cigna (NYSE), Kaiser Permanente, and CVS Caremark, offering VEVYE to more than 25 million Medicare Part D beneficiaries.
In addition to this milestone, VEVYE has achieved widespread insurance coverage, including 100% inclusion in U.S. Medicaid programs and 60% within commercial insurance plans. This aligns with Harrow’s mission to expand accessibility to treatments for chronic dry eye disease (DED), a condition that disproportionately impacts elderly individuals.
Harrow CEO Mark L. Baum highlighted the importance of Medicare Part D inclusion, emphasizing its potential to enhance the quality of life for the 67 million Medicare beneficiaries, 54 million of whom have prescription drug coverage. Baum pointed to the high prevalence of DED among seniors and the transformative impact VEVYE could have on their eye health.
A Breakthrough in Dry Eye Treatment
VEVYE (cyclosporine ophthalmic solution) 0.1% is a groundbreaking treatment for both the signs and symptoms of DED. Dispensed as a preservative-free, 10-microliter drop, it is the first cyclosporine-based therapy approved for dual indications.
Dry eye disease, a condition characterized by insufficient tear production or rapid tear evaporation, can cause significant discomfort and even vision loss in severe cases. According to a 2020 Market Scope report, over 38 million Americans suffer from DED, with many under-treated due to the limited efficacy and tolerability of existing options.
Financial Performance and Strategic Developments
Harrow’s latest announcement reflects broader strategic momentum. The company recently reported record quarterly revenue of $48.9 million, a 46% increase year-over-year. It also secured a $30 million drawdown from its amended credit agreement with Oaktree Fund Administration to fund a payment to Novartis (SIX).
Further bolstering its portfolio, Harrow reintroduced TRIESENCE, an FDA-approved corticosteroid that had been unavailable for five years due to supply chain challenges. Meanwhile, its subsidiary, Melt Pharmaceuticals, is advancing its lead program, MELT-300.
In addition, Harrow is expanding its Nashville headquarters, a move expected to create nearly 150 jobs, underscoring the company’s commitment to growth.
Investor Confidence and Market Outlook
Investors have taken notice of Harrow’s strategic strides. B. Riley recently upgraded its price target for Harrow shares to $73.00, citing robust sales growth of its ophthalmic brands. According to InvestingPro data, Harrow posted a 50.06% revenue increase in the past year, reaching $154.15 million by Q2 2024, with an impressive gross profit margin of 71.16%.
Despite a current operating income margin of -5.29%, Harrow’s stock price surged by 348.45% over the past six months, reflecting investor optimism. Analysts anticipate that VEVYE’s expanded coverage could drive profitability in the near future, solidifying Harrow’s position as a leader in the eyecare pharmaceutical market.
As Harrow continues to align its innovative products with patient needs and market opportunities, its growth trajectory and market momentum signal promising prospects for both the company and its stakeholders.
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