On October 25, 2024, Harrow Inc., a pharmaceutical company based in Nashville, Tennessee, amended its existing credit agreement with Oaktree Fund Administration, LLC, and associated lenders. This amendment, referred to as the Second Amendment, follows an original agreement from March 27, 2023, and a first amendment on July 18, 2023.
The company, under the amended Oaktree Loan, drew down $30 million to fund a payment to Novartis (SIX:NOVN) related to the commercial availability of Triescence, a milestone that was achieved with a $37 million payment on October 15, 2024.
The Second Amendment included a waiver of make-whole costs for early repayment of the debt if settled before March 31, 2025, and also excluded the new draw from the Total Leverage Ratio calculation, a financial covenant in the loan agreement.
With the latest drawdown, Harrow Inc. has now accessed a total of $107.5 million from Oaktree, with no additional funds available under this specific loan agreement.
The details of the Second Amendment are to be fully disclosed in the company's upcoming Quarterly Report on Form 10-Q for the quarter ending September 30, 2024. This financial move reflects Harrow Inc.'s strategic financial management as it navigates the pharmaceutical industry's commercial and development milestones.
The information in this article is based on a press release statement from Harrow Inc.
In other recent news, Harrow Health (NASDAQ:HROW)'s record quarterly revenue of $48.9 million, marking a 46% year-over-year growth, is making headlines.
Analysts at B. Riley upgraded their price target on Harrow Health shares to $73.00, citing promising sales growth trajectory of its leading ophthalmic pharmaceutical brands. Key developments include the resumption of supply for TRIESENCE and the progress of Melt Pharmaceuticals' lead program MELT-300, both expected to contribute to the company's revenue streams.
Harrow Health's reintroduction of FDA-approved corticosteroid TRIESENCE, after a five-year absence due to supply chain issues, is now available for order through major pharmaceutical specialty distributors. This move is expected to benefit millions of Americans by providing access to a critical medication for eye health.
In addition, Harrow Health is expanding its corporate headquarters in Nashville, Tennessee, a move expected to create nearly 150 new jobs. This development is part of the company's strategic growth plan, highlighting its robust financial performance and potential for future growth.
These are some of the recent developments that investors should keep an eye on.
InvestingPro Insights
Harrow Inc.'s recent financial maneuvers, as detailed in the article, can be better understood in light of some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $1.8 billion, reflecting its significant presence in the pharmaceutical industry.
Harrow's revenue growth has been impressive, with a 50.06% increase over the last twelve months as of Q2 2024, reaching $154.15 million. This strong growth aligns with the company's ability to meet commercial milestones, such as the recent Triescence-related payment to Novartis.
However, it's important to note that Harrow is not currently profitable, as indicated by its negative P/E ratio of -55.47 over the last twelve months. This explains the company's need for strategic financial management, including the recent credit agreement amendment with Oaktree.
InvestingPro Tips highlight that Harrow operates with a moderate level of debt and that its liquid assets exceed short-term obligations. These factors likely contributed to the company's ability to secure favorable terms in the Second Amendment, including the waiver of make-whole costs for early repayment.
The stock has shown strong performance, with a 269.07% return over the past year and a remarkable 380.53% return over the last six months. This positive market sentiment may have provided Harrow with additional leverage in its financial negotiations.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Harrow Inc., providing a deeper understanding of the company's financial position and market performance.
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