NASHVILLE - Harrow Inc. (NASDAQ:HROW), a prominent North American eyecare pharmaceutical company, has won a significant legal victory in a recent trademark infringement lawsuit. An eight-person jury in the United States District Court for the Southern District of California ruled in favor of ImprimisRx, Harrow's wholly owned subsidiary, awarding $34.9 million in damages against OSRX, Inc. and Ocular Science, Inc.
The jury's unanimous decision on Monday found that the defendants had willfully engaged in trademark infringement and unfair competition under both California and federal law. The verdict includes $20.4 million in punitive damages and $14.5 million in actual damages.
Mark L. Baum, CEO of Harrow, expressed satisfaction with the verdict, emphasizing the company's position as a leading innovator in the U.S. ophthalmic compounding market. He stressed the importance of respecting intellectual property and the significant investments Harrow has made in building its brands.
The case, identified as Case No. 3:21-cv-01305-BAS-DDL, was brought to trial after ImprimisRx alleged that OSRX, Inc. and Ocular Science, Inc. had committed willful acts of trademark infringement. The legal representatives for ImprimisRx were Keith J. Wesley, Christopher W. Arledge, and George Laiolo of ELLIS GEORGE LLP, with Nikki Wyll of Wyll Legal Consulting managing litigation strategy. The defense was represented by attorneys from WILSON SONSINI GOODRICH & ROSATI.
Harrow Inc. is known for discovering, developing, and commercializing ophthalmic pharmaceutical products in North America. The company aims to make prescription and non-prescription pharmaceutical products accessible and affordable to a broad patient base.
This news is based on a press release statement and provides a factual report on the recent legal decision. It does not include forward-looking statements or speculation about future events or implications for the industry.
In other recent news, Harrow Health (NASDAQ:HROW) has reported a strong performance in its third quarter of 2024, with significant growth in revenue and product prescription volume. The company's revenue rose to $49.3 million, marking a 44% increase from the previous year. Despite a temporary shortage of its dry eye product, VEVYE, Harrow Health still witnessed a 55% rise in prescription volume.
The company also expanded its sales territories from 51 to 61 and is making progress with Medicare Part D contracts for VEVYE. Harrow Health expects to recapture several million dollars of lost revenue due to VEVYE's supply disruption in the fourth quarter. The company's other products, IHEEZO and TRIESENCE, have also shown promise, with IHEEZO demand increasing by 15% and TRIESENCE's relaunch receiving positive initial responses.
These recent developments suggest that Harrow Health is on a growth trajectory, with projections of VEVYE's revenue more than doubling next year and IHEEZO potentially reaching $75 million in quarterly revenue by 2027. The company has also anticipated double-digit revenue growth in 2025 for the ImprimisRx segment.
InvestingPro Insights
The recent legal victory for Harrow Inc. (NASDAQ:HROW) comes amid a period of significant financial performance for the company. According to InvestingPro data, Harrow has demonstrated impressive revenue growth, with a 48.15% increase over the last twelve months as of Q3 2024, reaching $169.14 million. This growth trend is further reinforced by a 43.75% quarterly revenue increase in Q3 2024.
Despite these positive revenue trends, InvestingPro Tips indicate that Harrow is not currently profitable, with analysts not anticipating profitability this year. This is reflected in the company's negative operating income of -$8.57 million over the last twelve months. However, it's worth noting that Harrow operates with a moderate level of debt, which could provide financial flexibility as it navigates its growth phase.
The market seems to be recognizing Harrow's potential, as evidenced by the stock's strong performance. InvestingPro data shows a remarkable 360.3% price total return over the past year, and a 157.37% return over the last six months. This aligns with the InvestingPro Tip highlighting Harrow's high return over the last year.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Harrow Inc., providing a deeper understanding of the company's financial health and market position.
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