NASHVILLE - Harrow Inc. (NASDAQ:HROW), a major player in the North American ophthalmic pharmaceutical market, has announced a new agreement with Apexus to include its products in the 340B Prime Vendor Program as of July 1, 2024. This agreement is set to increase the availability of Harrow's eye care medications, including IHEEZO® (chloroprocaine hydrochloride ophthalmic gel) 3%, for U.S. hospitals, particularly those serving vulnerable populations.
The 340B Prime Vendor Program, managed by Apexus under the Health Resources and Services Administration (HRSA), facilitates discounted medication access to healthcare organizations. With approximately 44% of U.S. hospitals participating, the inclusion of Harrow's products is expected to have a considerable impact.
Mark L. Baum, Chairman and CEO of Harrow, expressed optimism about the potential benefits of this relationship, emphasizing the company's commitment to product accessibility and affordability.
IHEEZO®, approved by the FDA on September 26, 2022, is the first U.S. market-approved use of chloroprocaine hydrochloride for ocular anesthesia and the first branded ocular anesthetic approved in nearly 14 years. Clinical trials have demonstrated its effectiveness without the need for supplemental treatment during surgical procedures.
Other Harrow products available through the 340B program include VIGAMOX®, for bacterial conjunctivitis, and ILEVRO®, an anti-inflammatory eye drop for post-cataract surgery pain.
This strategic move aligns with Harrow's mission to support eyecare professionals and provide patients with access to essential pharmaceuticals. The company's portfolio includes both prescription and non-prescription products, aiming to reach millions of patients annually.
The information for this article is based on a press release statement from Harrow, Inc.
In other recent news, Harrow Health (NASDAQ:HROW) reported a significant 33% increase in Q1 2024 revenue compared to the previous year, maintaining its annual revenue guidance of over $180 million. This growth is attributed to recent product launches and strategic agreements.
The company also successfully manufactured the first process performance qualification (PPQ) batch of TRIESENCE®, marking a significant step towards addressing the drug's long-standing shortage.
Craig-Hallum and Lake Street Capital Markets have both revised their price targets for Harrow Health, reflecting confidence in the company's product pipeline and positive trends in prescription and volume data. Craig-Hallum raised the price target from $26.00 to $30.00, while Lake Street Capital increased it from $20 to $25, both firms maintaining a 'Buy' rating.
In addition, Harrow Health has established new relationships with seven large organizations of eye care professionals and appointed a new head of sales, further bolstering the company's business prospects.
InvestingPro Insights
As Harrow Inc. (NASDAQ:HROW) forges ahead with its strategic partnership to enhance the distribution of its ophthalmic products, investors are closely monitoring the company's financial health and stock performance. Recent data from InvestingPro shows a 7.72% return over the past week and an even more impressive 23.61% over the last month, signaling strong investor confidence following the news of the 340B Prime Vendor Program agreement. This momentum is further underscored by the stock trading near its 52-week high, at 99.25% of the peak price.
On the valuation front, Harrow's Price / Book ratio stands at 13.12, which may suggest a premium market valuation, especially when considering the company's current non-profitability status over the last twelve months. This could be a point of caution for value-oriented investors, as reflected in the current negative P/E Ratio of -24.1.
Delving into the company's financials, Harrow's significant revenue growth of 49.79% over the last twelve months as of Q1 2024 is a positive indicator of its business expansion, which could be further propelled by the new 340B agreement. However, with analysts not expecting profitability this year, as highlighted in one of the InvestingPro Tips, the company's future performance will be a key watch point.
For those interested in a deeper analysis, there are additional InvestingPro Tips available on Harrow Inc., which could offer more nuanced insights into the company's performance and potential investment opportunities. To explore these further, visit https://www.investing.com/pro/HROW and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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