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Introduction & Market Context
Harrow Health Inc (NASDAQ:HROW) presented its Q2 2025 corporate update on August 12, 2025, revealing mixed performance across its ophthalmic pharmaceutical portfolio while emphasizing strategic acquisitions and market share gains. The company’s stock has experienced significant volatility, trading at $34.43 as of August 11, 2025, down 1.89% for the day, and well below its 52-week high of $59.23.
The presentation follows a disappointing Q1 2025 earnings report where Harrow missed analyst expectations with an EPS of -$0.50 against a forecasted $0.06, and revenue of $47.8 million versus the expected $61.13 million. Despite these challenges, Harrow maintains its full-year 2025 revenue guidance of over $280 million, suggesting confidence in accelerated growth during the second half of the year.
Quarterly Performance Highlights
Harrow reported Q2 2025 consolidated revenue of $47.8 million, which appears flat compared to Q1 2025 reported figures. The company’s H1 2025 revenue reached $111.6 million, putting Harrow on track to achieve approximately 40% of its annual revenue target in the first half of the year. Notably, Q2 2025 Adjusted EBITDA improved significantly to $17.0 million, suggesting substantial margin improvement compared to Q1.
As shown in the following financial metrics chart, Harrow has demonstrated consistent revenue growth from $48.9 million in 2020 to $199.6 million in 2024, with 2025 guidance exceeding $280 million:
The company’s key growth drivers show varying performance across its product portfolio. While VEVYE revenue declined from $21.5 million in Q1 to $18.6 million in Q2, IHEEZO revenue surged from $5.2 million to $18.3 million in the same period. Specialty branded products and ImprimisRx also showed growth, as illustrated in the following breakdown:
Product Portfolio Performance
VEVYE, Harrow’s dry eye disease treatment, showed contradictory performance indicators in Q2. Despite revenue declining to $18.6 million from $21.5 million in Q1, prescription volume grew significantly, with TRx up 66% and NRx up 62% following the launch of the VEVYE Access For All (VAFA) program. The company attributes this growth to increased physician adoption, with VEVYE becoming the second-largest cyclosporine-based dry eye brand by market share.
The following chart illustrates VEVYE’s prescription growth trajectory since its January 2024 launch, with Q2 2025 reaching 119,526 prescriptions:
VEVYE’s market share has increased to 7.8% of the total dry eye disease market in Q2 2025, up 2.6% from Q1 2025, as shown in the following chart:
IHEEZO, Harrow’s ocular anesthetic, demonstrated strong growth following a strategic "Retina Pivot" focusing on the retina specialist community. The product achieved a 33% quarter-over-quarter increase in volume and a remarkable 170% increase in distributor volume in Q2 versus Q1. Customer demand has grown steadily since its launch, as illustrated below:
Strategic Initiatives
Harrow has made significant strategic moves to expand its portfolio and enhance market access. The company launched the VEVYE Access For All (VAFA) program, which ensures patient access to VEVYE for $0-$59 per bottle regardless of insurance coverage. This initiative appears to be driving prescription volume despite the Q2 revenue decline for the product.
Additionally, Harrow recently acquired exclusive U.S. rights to Samsung (KS:005930) Bioepis’ ophthalmology biosimilars, including BYOOVIZ (ranibizumab-nuna) and OPUVIZ (aflibercept-yszy), positioning the company in the lucrative anti-VEGF market. These biosimilars target a market of approximately 8.5 million units annually across all anti-VEGF products:
The company also launched the Harrow Cares HUB to provide reimbursement support for IHEEZO and TRIESENCE, which should help accelerate expansion beyond Medicare Fee-for-Service patients to commercial and Medicare Advantage patients.
In June 2025, Harrow acquired the exclusive U.S. commercial rights for BYQLOVI (clobetasol propionate ophthalmic suspension) 0.05%, a potent steroid for treating inflammation and pain after ocular surgery. The product is scheduled for launch in Q1 2026 and will complement Harrow’s existing anterior segment portfolio:
Forward-Looking Statements
Despite mixed Q2 results and the significant Q1 earnings miss, Harrow maintains its 2025 revenue guidance of more than $280 million. The company expects VEVYE to generate over $100 million in 2025 revenue, with H2 2025 revenue projected at $60+ million, suggesting a substantial acceleration from H1 performance. Similarly, IHEEZO is expected to contribute $50+ million for the full year, with H2 revenue projected at $27+ million.
Harrow’s comprehensive portfolio of ophthalmic pharmaceutical brands spans both anterior and posterior segments of the eye, providing a diversified revenue stream across multiple treatment categories:
CEO Mark L. Baum has previously emphasized that "VEVYE is presently Harrow’s most valuable asset" and expressed confidence in capturing the cyclosporine market. The company’s strategic acquisitions and market access initiatives appear designed to overcome the challenges revealed in its Q1 earnings disappointment and position Harrow for stronger performance in the latter half of 2025.
While the presentation maintains an optimistic outlook, investors should consider the significant gap between current performance and full-year guidance, particularly given the recent earnings miss and stock volatility. The success of the VAFA program in driving prescription volume will need to translate into revenue growth for VEVYE to meet its ambitious targets for the second half of the year.
Full presentation:
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