Harrow Health, Inc. (NASDAQ:HROW) Q2 2023 Earnings Call Transcript

Mark L. Baum: With all of the products that we’ve acquired whether it’s from Novartis or Santen, we always ensure that we have an ongoing multi-year contract manufacturing agreement in place. And of course, we have flexibility to move the manufacturing to another partner, if we so choose. But we do have a partner in place for TRIESENCE, and we intend to continue that relationship and we’re excited to hopefully have some inventory by the end of the year. And I think the nice thing about TRIESENCE is, we don’t need a lot of salespeople to sell TRIESENCE. It will pretty much sell itself. So if we have the inventory, I think, our wholesalers will take as much as we could produce and we’ll be able to produce a lot of value for our stockholders.

Brooks O’Neil: Great. I appreciate your taking my questions and patience with me and I’ll look forward to talking to you guys again soon.

Mark L. Baum: Thank you, Brooks.

Operator: The next question is from Mayank Mamtani of B. Riley. Please go ahead.

Mayank Mamtani : Good afternoon, Dean, and congrats on a strong quarter and good to see the five-year strategic plan in your stakeholder letter. So a couple of fairly targeted questions from us. Maybe to start and picking your thoughts regarding the full year guidance. We get a lot of question on the push and pull there in terms of how much IHEEZO might be driving that, but also your cap products seem to be ramping up relatively ahead of plan. And I wonder also how much accretion you’re able to have Santen and then within the calendar year 2023. If you could just comment on that that would be great.

Mark L. Baum: Yes. So thank you for the question. The revenue growth is being driven broadly speaking by our branded portfolio. That’s VIGAMOX, it’s MAXITROL, MAXIDEX, ILEVRO, NEVANAC, and of course IHEEZO. So that’s where we’re seeing the growth. And we expect the Santen portfolio to also provide not only sort of the revenue base that we acquired when we brought the products on, but we also expect to see some meaningful growth in that portfolio once we have the marketing authorizations under our control. That’s not going to happen tomorrow. It’s going to take a few months. So there’s sort of a transition period that we’re undergoing. And you should see I think in 2024 a pickup from the Santen portfolio in terms of revenues and overall contribution.

But I think the real growth drivers in the business in 2024 are going to come from IHEEZO. We expect significant continued growth in 2024 and 2025 and been beyond for IHEEZO and we’re very excited about VEVYE and really beginning the market access work there. And this is just a market I personally have spent a lot of time trying to understand. We have interviewed hundreds and hundreds of chronic dry disease patients conducted telephonic interviews. And so we think we understand this patient population very well and what the nuances are that you have to overcome to help these folks. And so we just are very, very excited about VEVYE and what it will offer to this patient population. And this is going to be a product that will build in 2024 and for many, many years to come.

I mean you’ve got very strong IP on VEVYE out into 2039 and beyond actually. So it’s a product that we’re going to offer for a long, long time. It’s going to help a lot of people.

Mayank Mamtani: Great. Thank you. And maybe staying on your — this DED marketplace entry and by the way we have the water versus water-free analogy. For VEVYE, the product differentiation relative to maybe some more recent drug launches that have created this perception of the uptake being slow, the market opportunity being limited which is a function of a lot of the patients to your point going undertreated. They don’t comply as well. So maybe just clearly from a clinical data standpoint what sort of profile we are talking about relative to some of these recent drugs. And obviously folks are also curious to know how it differentiates against the spaces which is genetic cyclosporine?