Harrow Closes Acquisition of U.S. Rights to ILEVRO®, NEVANAC®, VIGAMOX®, MAXIDEX®, and TRIESENCE® and Will Begin Receiving Net Profit Payments for Acquired Products
January 23 2023 - 7:00AM
Business Wire
Harrow (Nasdaq: HROW), a leading U.S. eyecare pharmaceutical
company, today announced the closing of its previously announced
acquisition of the exclusive U.S. commercial rights to five branded
ophthalmic products: ILEVRO®, NEVANAC®, VIGAMOX®, MAXIDEX®, and
TRIESENCE®.
Pursuant to the terms of an asset purchase agreement, Harrow
paid $130 million at closing, with an additional milestone payment
due upon the commercial availability of TRIESENCE. Harrow and the
seller have entered into an estimated six-month transition period
during which the seller will continue to sell the products in the
U.S. and transfer all net profits from the products to Harrow.
During the transition period, the product NDAs will be transferred
to Harrow. Upon the transfer of a product NDA, Harrow will assume
control over all U.S. market activities for the subject
product.
Harrow expects these products to be immediately financially
accretive and reaffirms 2023 guidance of $135 million to $143
million in net revenues and $44 million to $50 million in adjusted
EBITDA. Harrow believes that both net revenues and adjusted EBITDA
should grow further during 2024 and for at least three to five
years thereafter.
About Harrow
Harrow (Nasdaq: HROW) is a leading U.S. eyecare pharmaceutical
company serving ophthalmologists and optometrists by providing
FDA-approved branded ophthalmic pharmaceuticals and innovative
compounded prescription medicines that are accessible and
affordable. Harrow’s mission is to help eyecare professionals
protect the gift of sight for their patients. For more information
about Harrow, please visit the Investors section of the corporate
website, harrow.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Any statements in this release that are not historical facts
may be considered such “forward-looking statements.”
Forward-looking statements, including net revenues and adjusted
EBITDA guidance, are based on management's current expectations and
are subject to risks and uncertainties which may cause results to
differ materially and adversely from the statements contained
herein. Some of the potential risks and uncertainties that could
cause actual results to differ from those predicted include the
continued impact of the COVID-19 pandemic and any future health
epidemics on our financial condition, liquidity and results of
operations; our ability to make commercially available our
FDA-approved products and compounded formulations and technologies
in a timely manner or at all; market acceptance of the Company’s
products and challenges related to the marketing of the Company’s
products; risks related to our pharmacy operations; our ability to
enter into other strategic alliances, including arrangements with
pharmacies, physicians and healthcare organizations for the
development and distribution of our products; our ability to obtain
intellectual property protection for our assets; our ability to
accurately estimate our expenses and cash burn, and raise
additional funds when necessary; risks related to research and
development activities; the projected size of the potential market
for our technologies and products; unexpected new data, safety and
technical issues; regulatory and market developments impacting
compounding pharmacies, outsourcing facilities and the
pharmaceutical industry; changes in federal and state laws and
related policies; competition; and market conditions. These and
additional risks and uncertainties are more fully described in
Harrow’s filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K and its Quarterly Reports
on Form 10-Q. Such documents may be read free of charge on the
SEC's website at www.sec.gov. Undue reliance should not be placed
on forward-looking statements, which speak only as of the date they
are made. Except as required by law, Harrow undertakes no
obligation to update any forward-looking statements to reflect new
information, events, or circumstances after the date they are made,
or to reflect the occurrence of unanticipated events.
Non-GAAP Financial Measure
In addition to the Company’s results of operations determined in
accordance with U.S. generally accepted accounting principles
(GAAP), management also utilizes Adjusted EBITDA, an unaudited
financial measure that is not calculated in accordance with GAAP,
to evaluate the Company’s financial results and performance and to
plan and forecast future periods. Adjusted EBITDA is considered a
“non-GAAP” financial measure within the meaning of Regulation G
promulgated by the SEC. Management believes that this non-GAAP
financial measure reflects an additional way of viewing aspects of
the Company’s operations that, when viewed with GAAP results,
provide a more complete understanding of the Company’s results of
operations and the factors and trends affecting its business.
However, Adjusted EBITDA and any other non-GAAP financial measures
should be considered as a supplement to, and not as a substitute
for, or superior to, the corresponding measures calculated in
accordance with GAAP. Further, non-GAAP financial measures used by
the Company and the way they are calculated may differ from the
non-GAAP financial measures or the calculations of the same
non-GAAP financial measures used by other companies, including the
Company’s competitors.
The Company defines Adjusted EBITDA as net loss attributable to
Harrow Health, Inc., excluding the effects of stock-based
compensation and expenses, interest, taxes, depreciation,
amortization, investment loss, net, gain on forgiveness of debt,
and, if any and when specified, other non-recurring income or
expense items. Management believes that the most directly
comparable GAAP financial measure to Adjusted EBITDA is net loss
attributable to Harrow Health, Inc. The Company is not able to
provide a reconciliation of projected Adjusted EBITDA to expected
results due to the unknown effect, timing and potential
significance of transaction-related expenses.
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version on businesswire.com: https://www.businesswire.com/news/home/20230123005117/en/
Investors Jamie Webb
Director of Communications and Investor Relations
jwebb@harrowinc.com 615-733-4737
Media Deb Holliday Holliday
Communications, Inc. deb@hollidaycommunications.net
412-877-4519
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