William Blair Bullish On Harrow's High-Margin Branded Eye Drug Strategy

Harrow Inc (NASDAQ:HROW) and Taiwan-based Formosa Pharmaceuticals announced a licensing agreement on Monday.

Harrow acquired the exclusive U.S. commercial rights for BYQLOVI (clobetasol propionate ophthalmic suspension) 0.05%.

BYQLOVI was recently approved by the U.S. Food and Drug Administration (FDA) for post-operative inflammation and pain following ocular surgery. It is the first new ophthalmic steroid in its class in over 15 years.

Harrow expects BYQLOVI to be available in the fourth quarter of 2025.

BYQLOVI, a high-potency ophthalmic corticosteroid formulated using Formosa’s proprietary APNT nanoparticle formulation technology, delivers uniform suspension

“We are thrilled to soon launch BYQLOVI, a truly clinically differentiated topical corticosteroid, into a U.S. market that now exceeds 7 million annual ophthalmic surgeries,” said Harrow CEO Mark L. Baum. “With compelling efficacy, extraordinary safety, and patient‑friendly dosing, BYQLOVI  its has the potential to shift the paradigm in the multi-billion-dollar U.S. post-surgical care ophthalmic segment.”

William Blair initiated coverage on Harrow on Tuesday with an Outperform rating.

“The company started out as a compounding pharmacy business but has expanded into branded pharmaceuticals in recent years by acquiring a large portfolio of branded therapies that we believe offer an attractive growth and margin profile,” analyst Lachlan Hanbury-Brown wrote on Tuesday.

William Blair sees strong growth potential for Harrow, driven by three key products. Vevye, launched in January 2024 for dry eye disease, shows strong early adoption and refill rates, with projected peak sales of $355 million by 2030 and patent protection through 2042.

Iheezo and the reintroduced Triesence position Harrow in the expanding market for retinal procedures, with peak sales estimated at $300 million by 2035 and patent protection to 2038.

The company's focus on retina practices, strategic team, and ImprimisRx compounding pharmacy provides a competitive advantage. Harrow also plans to expand its branded drug portfolio as new opportunities arise.

Price Action: HROW stock is up 0.96% at $31.47 at the last check on Wednesday.

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