NASHVILLE - Harrow (NASDAQ:HROW), a prominent eye care pharmaceutical company in North America, has announced the successful production of the first process performance qualification (PPQ) batch of TRIESENCE®. This advancement marks a significant step toward addressing the long-standing shortage of the drug, which has been absent from U.S. markets for over two years.
TRIESENCE, a preservative-free corticosteroid approved by the FDA for certain ocular conditions and as an aid in vitrectomy, has been difficult to replace during its shortage. The successful manufacture of this batch is part of a series of three required PPQ batches, which, if successful, will allow Harrow to relaunch TRIESENCE within 2024.
The company is now preparing for the production of the remaining batches. Once the PPQ process is validated, Harrow plans to build an initial inventory of TRIESENCE, although it may not fully satisfy market demand initially. Harrow is working closely with its manufacturing partner to expedite the production process.
In the meantime, Harrow's commercial team is initiating pre-commercial activities, including discussions with strategic accounts for pre-ordering the expected initial inventory. The company remains committed to making TRIESENCE available to U.S. ophthalmologists and retina specialists as soon as possible.
TRIESENCE has been a trusted solution for eye care professionals, and its scarcity has posed challenges in the treatment of ocular inflammatory conditions unresponsive to topical corticosteroids. With the resumption of production, Harrow aims to alleviate the drug shortage, although the timeline for full market replenishment remains uncertain.
This development is based on a press release statement from Harrow.
In other recent news, Harrow Health (NASDAQ:HROW) reported a robust 33% increase in Q1 2024 revenue compared to the previous year, despite challenges such as a cyber-attack impacting sales. This growth is attributed to recent product launches and strategic agreements. The company remains optimistic about achieving its annual revenue guidance of over $180 million.
In addition to these financial milestones, Lake Street Capital Markets has revised its outlook on Harrow Health, raising its price target from $20 to $25 while maintaining a 'Buy' rating. This decision reflects confidence in Harrow Health's product pipeline, particularly the opportunities associated with VEVYE, IHEEZO, and TRIESENCE.
The recent establishment of new relationships with seven large organizations of eye care professionals and the appointment of a new head of sales are expected to further bolster Harrow Health's business prospects.
InvestingPro Insights
As Harrow (NASDAQ:HROW) takes a crucial step toward addressing the shortage of TRIESENCE® in the U.S. market, investors and industry observers are keeping a close eye on the company's financial health and market performance. According to real-time data from InvestingPro, Harrow has a market capitalization of $624.49 million, reflecting the size and scale of the company within the pharmaceutical sector. Despite the positive news on TRIESENCE, analysts are not expecting Harrow to be profitable this year, as indicated by an InvestingPro Tip. This aligns with the company's recent performance, where it has not been profitable over the last twelve months.
However, Harrow's financial position shows some strengths, with liquid assets exceeding short-term obligations, suggesting a level of financial stability that could support ongoing operations and investment in production capabilities. This is particularly relevant as the company ramps up efforts to meet the anticipated demand for TRIESENCE. Additionally, Harrow has been trading at a high Price / Book multiple of 10.31, which may indicate investors' confidence in the company's asset value and future growth prospects, despite current profitability challenges.
InvestingPro also highlights Harrow's impressive return over the last three months, with a 67.78% price total return, signaling strong recent market performance that could interest potential investors. For those considering a deeper dive into Harrow's financials and market potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/HROW. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive view of the company's financial landscape and future outlook.
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